SGX M42F Thermal Coal - Daily Update 22 January 2021

10kt traded in the Thursday T+1 session

    Feb-21 traded 10kt @ $48.00

80kt traded in the Friday T session

    Feb-21 traded 30kt @ $47.00

    Mar-21 traded 5kt @ $44.50

    Mar-21 traded 5kt @ $44.00

    Feb-21 traded 10kt @ $47.00 (Feb-21/Mar-21 spread @ $3.25)

    Mar-21 traded 10kt @ $43.75 (Feb-21/Mar-21 spread @ $3.25)

    Feb-21 traded 10kt @ $46.75 (Feb-21/Mar-21 spread @ $3.50)

    Mar-21 traded 10kt @ $43.25 (Feb-21/Mar-21 spread @ $3.50)

January month-to date:

Futures Volume at a record of 1,114kt, Open interest at a record of 1,000kt

Total volume since January 2021 at a record of: 1,114kt

 

Physical

Indonesian supply remained tight due to challenging weather, leading to a further boost in prices this week. This brought the weekly IHS McCloskey Indonesian (4,200 kc GAR) FOB marker (M42) to $50.15/t FOB on Friday, its highest level since 23 February 2018, at $50.42/t. Heavy rainfall in many of Indonesia's coal-producing regions has shown no sign of slowing and operations remain hampered from pit to port for some miners. However, there are concerns over demand for March as buyers from China begin to show some restraint. Traded levels for low-rank material firmed further on the week with deals for February loading geared vessels heard concluded at $49.00-51.50/t FOB, basis 3,800 kc NAR. Last week, cargoes loading for the same month settled at $48.00-48.50/t FOB, same basis. Markets for March loading geared vessels were heard bid at $43.25-48.00/t FOB, basis 3,800 kc NAR, against offers at $48.00-50.00/t FOB, same basis.

 

Paper

M42 volumes passed 1 million tonnes in January transacting via SGX this week. This is the first time this level has been breached in a single month, having fallen just short in December. Over the week, February M42 transacted via SGX at $46.75-52.00/t, versus deals done last week at $47.00-49.05/t. Deals for M42 March hovered around $46.75-49.00/t for most of the week before easing to a range of $43.25-45.00/t as the week ended. A week ago, deals for March settled at $41.50-46.70/t. Trades for April were done at $45.75/t, up on the week from $40.00-$43.50/t.

 

Source: IHS Markit