SGX M42F Thermal Coal - Daily Update 25 June 2020
Friday, June 26 2020 - 06:42 PM WIB
June month-to date:
Futures volume at 487kt, Open interest at 377kt
Total volume since January 2020: 1,735kt
Physical
Chinese absence for a national holiday exacerbated an already slow week in the Asian thermal markets. There were reports of Indian interest, although enquires were said to be at low levels. Trading activity remained soft for Indonesian material, although interest from India was noted by several suppliers. However, deals were few and far between as the bid-offer gap remained too wide, several suppliers said. Bids were said to have been seen at $22.50-24.50/t FOB, basis 4,200 kc GAR, for geared vessels loading in July, against offers at $25.00-26.50/t FOB, same basis. Weather at mine sites and ports in Kalimantan and Sumatra were generally favourable, according to industry sources.
Paper
M42, listed on SGX, was bid for July at $24.50 and offered at $25.75, with August offered at $27.00. A market for November was reported bid at $26.10 and offered at $27.60. In addition, Q4-20 was bid at $26.10 and offered at $28.00. Spreads were also reported, with July vs August bid at M42 minus $1.00 and offered at minus $0.30. Offers were also reported at minus $0.10 for both August vs September and September vs October.
Source: IHS Markit