SGX M42F Thermal Coal - Daily Update 21 July 2020

July month-to date:

Futures volume at 218kt, Open interest at 378kt

Total volume since January 2020: 1,953kt

 

Physical

The weather is the main focus for miners in South and East Kalimantan, where heavy rains have negatively impacted production and logistics in the past few weeks. Details of a deal done over the weekend emerged at $25.90/t FOB, basis 4,200 kc GAR, for a 50,000 t parcel for August loading, and for delivery into India. Several suppliers noted improved bidding levels from Indian and Chinese buyers this week. A bid from India for a geared vessel loading in South Kalimantan at the end of August was said to have been heard at $25.50/t FOB, basis 4,200 kc GAR. Out of China however, an offer was heard at $25.50/t FOB, basis 3,800 kc NAR, for a geared vessel also loading in August. There was talk of geared vessels trading into China at $23.90-24.40/t FOB, basis 3,800 kc NAR, for loading in late July, although these could not be confirmed at the time of writing. For September loading, a geared vessel was heard bid at $24.65/t FOB, basis 3,800 kc NAR, against an offer at $26.50/t FOB, same basis. On an index-linked basis, a bid was reported at M42 minus $0.45/t, for a geared vessel of 3,800 kc NAR material loading in November, against an offer at plus $0.15/t.

 

Paper

M42, listed on SGX, was bid for July at $23.95 against an offer at $25.25, while August was bid at $25.60 and offered at $25.95. September was bid at $26.35 and offered at $26.85. Further out, Q4-20 was bid at $27.90 and offered at $28.95.

 

Source: IHS Markit