SGX M42F Thermal Coal - Daily Update 25 September 2020

10kt traded in Thursday T+1 session

• Oct-20 traded 10kt @ $27

20kt traded in Friday T session

• Oct-20 traded 5kt @ $26.45

• Nov-20 traded 15kt @ $27.50

 

September month-to date:

Futures volume at 304kt, Open interest at 402kt

 

Total volume since January 2020: 2,683kt

 

Physical

Indonesian coal prices continued to grow as momentum strengthened in the recent weeks with the winter buying firmly in motion. However, news that Huaneng has reneged on tender awards affecting Indonesian low-rank material has left producers stunned, with some concerned that traders will in turn default on commitments to them. Despite this, some Indonesian suppliers believe that the bearish sentiment will not be sustained as rains have begun to intensify in parts of South Kalimantan and could tighten supply further out. Most reported low c.v. coal transactions over the week were for Panamaxes, amid declining freight rates. Deals were heard concluded at $25.00/t, $25.00-25.70/t and $26.70/t FOB, basis 3,800 kc NAR, for October, November and December loading Panamaxes respectively. Geared vessels loading in October were trading at around $25.00/t FOB, basis 3,800 kc NAR.

 

Paper

Asian paper trading was active with October deals for M42 settling via SGX at $25.40-27.00/t, up from $24.30-24.75/t last week. November M42 trades were done at $26.40-27.60/t, also rising on the week from $25.75/t. December traded at $27.75/t, while a Q4 contract for M42 settled at $27.40/t. Record open interest was breached several time over the week.

 

Source: IHS Markit