SGX M42F Thermal Coal - Daily Update 26 July 2019

20kt traded in Friday T Session 

• Aug-19 traded 10kt @ $33.85

• Sep-19 traded 10kt @ $33.85

 

July month-to date:

Futures volume at a RECORD 196kt, open interest 116kt

 

Total volume since April 2018: 1025kt

 

Physical

Production was understood to be largely unhindered across Kalimantan's major mining regions, as the weather continued to improve with the move into the dry season. Few logistics difficulties were reported over the week. With supply good, and buying activity relatively weak, prices, particularly for low-rank continued to come under downwards pressure. Low-rank markets were under more pressure, with stockpiles at some mines and ports mounting up, and in some instances, smoking. A number of deals were reported at around $34.80-35.50/t FOB, basis 3,800 kc NAR, for August loading Panamaxes, while geared vessels were transacted at around $33.50-34.00/t FOB, basis 3,800 kc NAR, also for August loading.

 

Paper

The traded volume of M42 paper via SGX passed the 1 mt market last week, with July also becoming the product's largest month in terms of volume, at just under 200,000 t. Deals were done for August at $38.85-34.00, with September trading at $33.85-34.25. On Friday, another four deals went through, with markets reported bid at $33.40 and offered at $34.05 for August, with September bid at $33.40 and offered at $34.05. Further out, Q4-19 was bid at $33.25 and offered at $34.30. (ends)