SGX M42F Thermal Coal - Daily Update 23 July 2019

35kt traded in Tuesday T Session

• Aug-19 traded 5kt @ $34

• Sep-19 traded 5kt @ $34

• Sep-19 traded 10kt @ $34.20

• Sep-19 traded 15kt @ $34.25

 

July month-to date:

Futures volume at a RECORD 176kt, open interest at a RECORD 126kt

 

Total volume since April 2018: 1005kt

 

Physical

Production has largely been going smoothly across Indonesia's major mining regions. With spot purchasing activity currently dampened by limited buying interest from China, coal stocks at mines and ports are understood to have been building up. Low-rank Indonesian prices were still under downward pressure, with August loading geared vessels bid at $33.00-33.50/t FOB, basis 3,800 kc NAR, against offers at $34.00-34.50/t FOB, same basis. However, deals for Panamaxes, also loading in August, were heard trading at $35.00-35.50/t FOB, basis 3,800 kc NAR.

 

Paper

M42 paper passed its first 1 mt of paper traded via SGX. July is already the record contract in terms of monthly volume, with M42 gaining momentum recently, both as a derivative (with open interest out to the end of the year) but also for settling physical contracts. August and September both traded at $34.00 in early trading, followed by deals for September at $34.20 for 10,000 t and again at $34.25 for 15,000 t. Later, August was being bid at $33.90 and offered at $34.40, with September bid at $33.90 and offered at $34.40. Further out, Q4-19 was bid at $33.75 and offered at $34.40. (ends)