SGX M42F Thermal Coal - Daily Update 26 April 2019

 40kt traded in Friday T Session

• May-19 traded 20kt @ $39.35 (May-19/Jun-19 spread @ $0.30)

• Jun-19 traded 20kt @ $39.05 (May-19/Jun-19 spread @ $0.30)

 

5kt traded in Friday T+1 Session

• Jun-19 traded 5kt @ $39.05

 

April month-to date:

Futures volume 80kt, open interest 60kt

 

Total volume since April 2018: 714kt

 

Physical

Prices for Indonesian coal settled higher on the week, supported by tendering from Chinese power plants. Though Chinese buying was active, traders are anticipating Chinese domestic coal prices to drop and this could soften the import appetite further out. Several Indonesian suppliers and traders, however, appeared confused about buying sentiment, despite the growing price levels. "Uncertainty over China's next move is keeping us on our toes," a source from a major producer said. Deals for low c.v. coal enjoyed a lift in transacted prices this week with May loading material settling at $38.40-38.75/t and $39.00-40.20/t FOB, basis 3,800 kc NAR, for geared vessels and Panamaxes respectively, compared with $38.00-38.50/t and $38.75/t FOB, same basis last week. An Index-linked deal was also reported at average of M42/ICI4 plus $0.25/t for a prompt loading geared vessels.

 

Paper

Trades for M42, as listed on SGX, were concluded at higher levels. May transacted at $39.35/t, while June was done at $39.05/t. Last week, fair value for May and June was $38.45/t and $38.10/t respectively. Markets for July were bid at $38.25/t, against offers at $39.70/t. But the bid-offer gap was narrower for earlier loading months. May was bid at $38.95/t, against offers at $39.60/t, while June was bid at $39.00/t, against offers at $39.55/t. (ends)