SGX M42F Thermal Coal - Daily Update 26 November 2020

8kt traded in the Thursday T session

    Dec-20 traded 5kt @ $33.25

    Q1-21 traded 3kt @ $33.50

November month-to date:

Futures Volume 227kt, Open interest at 553kt

Total volume since January 2020: 3,657kt

 

Physical

Indonesian prices continue to increase, although buyers have been struggling to conclude deals as freight rates are firming just as rapidly as FOB levels. Some buyers were said to be finding it difficult to get the timing right to secure freight and FOB prices in alignment, with both moving so fast. For low-rank, a deal was reported at $32.50/t FOB, basis 3,800 kc NAR, for a December loading geared vessel. Another deal was heard done at $32.75/t FOB, basis 3,800 kc NAR, for a December loading Panamax, although this could not be confirmed at the time of writing. Bids were heard at $31.50/t FOB, basis 3,800 kc NAR, for December loading geared vessels. An offer was heard at $32.10/t FOB, basis 3,700 kc NAR, for a geared vessel loading in January. On an index-linked basis, a geared vessel loading in December was sold at flat to the average of the M42 and ICI4 indices.

 

Paper

M42 traded at $33.25 for December, which is $1.25 higher than the $32.00 level it traded at earlier in the week. Later in the day, November was bid at $29.90 and offered at $30.10, while December was bid at $33.00 an offered at $33.75. Further out, January was bid at $32.00 and offered at $33.85, while Q1-21 was bid at $32.00 and offered at $33.50. Spreads for January vs February were bid at minus $0.25 and offered at plus $0.25, while February vs March was bid at minus $0.50 and offered at flat $0.00. Q1-21 vs Q2-21 was bid at minus $1.75 and offered at flat $0.00, while Q2-21 vs Q3-21 was bid at minus $1.50 and offered at plus $0.25. Q3-21 vs Q4-21 was bid at minus $1.75 and offered at flat $0.00. Later in the evening session the first Q1-21 deal was done, struck at $33.50.

 

Source: IHS Markit