SGX M42F Thermal Coal - Daily Update 26 February 2020

10kt traded in Wednesday T Session

• Mar-20 traded 10kt @ $34

 

February month-to date:

Futures volume at a RECORD 290kt, Open interest at a RECORD 412kt

 

Total volume since January 2020: 402kt

 

Physical

Suppliers in Indonesia remarked that the market remains sluggish on the back of weak demand from China and India. For low-rank, there was confirmation of a deal heard earlier in the week, done at $35.00t/ FOB, basis 3,800 kc NAR, for March loading. Cargoes loading at the end-March were heard bid at $35.00/t FOB, basis 4,200 kc GAR, by buyers in China, a Jakarta-based trader shared. Offers for the latter part of March were heard at $35.50/t FOB, basis 4,200 kc GAR, against bids at $34.75/t FOB and $35.00/t FOB, same basis, from buyers in India and China respectively. An offer for a March loading Panamax was heard at $36.25/t FOB, basis 3,800 kc NAR. For April loading geared vessels, a bid was reported at $34.00/t FOB, basis 3,800 kc NAR against an offer at $35.50/t FOB, same basis.

 

Paper

M42 paper, listed on SGX, traded a couple of times for March at $34.00. As a result February 2020 has become the record month for volume traded, while open interest also hit a new high. Earlier in the day February was bid at $35.65 and offered at $35.95. March was bid at $34.00 and offered at $35.25, while April was bid at $33.85 and offered at $35.15. Further out, Q3-20 was bid at $33.60 and offered at $34.60, which was the same level as a market for Q4-20 was reported. A spread for March vs April was bid at $0.00 and offered at plus $0.65.

 

Source: IHS McCloskey.