SGX M42F Thermal Coal - Daily Update 21 January 2020

22kt traded in Tuesday T Session

• Feb-20 traded 22kt @ $35.20

 

January month-to date:

Futures volume at 37kt, Open interest at 293kt

 

Total volume since January 2020: 37kt

 

Physical

Asian thermal market activity dropped down another gear, with few Chinese market participants left in the market ahead of the Lunar New Year holiday. Prices for low-rank Indonesian material were said to be firming according to sellers, citing flooding in various parts of Kalimantan as providing support. With limited buy-side activity ahead of the Lunar New Year holidays, these higher offer levels have yet to be rigorously tested. Low-rank material was heard traded at $28.65/t FOB, basis 3,400 kc NAR, for a February loading geared vessel. An offer was also made at $35.75/t FOB, basis 4,200 kc GAR, for a March loading geared vessel, though no bids were heard against.

 

Paper

Prompt M42 paper, listed on SGX, remains quiet ahead of the Lunar New Year, although February traded a couple of time at $35.20 for a total of 22,000 t. Earlier in the day, the bid for February moved higher to $34.75 from $34.50 a day ago, while the offer against remained at $35.50.

 

 Source: IHS McCloskey.