SGX M42F Thermal Coal - Daily Update 22 November 2019

November month-to date:

Futures volume at 155kt, Open interest at 152kt

 

Total volume since January 2019: 1,104kt

 

Physical

China's import controls and a lack of robust demand from other markets kept trading activity for Indonesian material weak, although support emerged towards the end of the week. Low-rank coal traded at $33.15-33.50/t FOB, basis 3,800 kc NAR, for December loading geared vessels. A week back, low-rank deals settled at $33.00-33.85/t FOB, same basis, also for December loading geared vessels. On an index-linked basis, a deal went through at M42/ICI4 flat, basis 4,200 kc GAR, for a December loading geared vessel. On a China-delivered basis, deals were settled at $39.50-40.20/t CFR, basis 3,800 kc NAR, for a December arrival Panamax, down from $40.50/t CFR, same basis, last week.

 

Paper

M42, traded via SGX, at $33.50 for a 10,000 t clip in December over the week, easing from transacted levels last week at $33.75-34.00. December was last heard bid at $33.05 and offered at $33.75, with January bid at $33.30 and offered at $33.80.  February was bid at $33.33 and offered at $33.90, while March was bid at $33.55 and offered at $33.85.Further out, Q1-2020 was bid at $33.35 and offered at $34.05, while Cal-2020 was bid at $33.65 and offered at $34.75.

Source: IHS McCloskey.