SGX M42F Thermal Coal - Daily Update 22 August 2019

August month-to date:

Futures volume at 107kt, open interest at 162kt

 

Total volume since April 2018: 1.16 million metric tonnes

 

Physical

Low river levels, particularly along parts of the Mahakam and Barito Rivers, continue to keep miners from barging at optimum levels. A lack of rain in recent months has also caused some lower rank material to start smoking, several sources said. "The combination of no rain for an extended period and stockpiling due to weak demand has caused some material to start burning quite badly," one source said. It is also understood that some buyers have complained about dust issues as well. But these supply disruption factors have done little to support the market "It has been very quiet, and bookings are far and few between," one shipping agent said. An offer was reported at $31.00/t FOB, basis 3,800 kc NAR, for a September or October loading geared vessel, although bids were hard to come by. A September loading Panamax was also reported offered at $33.00/t FOB, basis 3,800 kc NAR. On an index-linked basis, a September loading Supramax was understood to have traded at flat to the average of the M42 and ICI4 indices.

 

Paper

M42 paper, listed on SGX, was bid for September at $31.10 and offered at $31.30, with October bid at $30.95 and offered at $31.25. November was bid at $30.50 and offered at $31.25, while December was bid at $30.55 and offered at $31.25. Q4-19 was bid at $30.40 and offered at $31.25, with Q1-20 bid at $33.25/t and offered at $34.30. A bid was also reported for Q2-20 at $33.85 against an offer at $34.90. A spread was reported for November vs December, bid at minus $0.75 and offered at plus $0.15. (ends)