SGX M42F Thermal Coal - Daily Update 27 August 2020

25kt traded in Thursday T session:

 Sep-20 traded 25kt @ $23.25

 

August month-to date:

Futures volume at 199kt, Open interest at 454kt

 

Total volume since January 2020: 2,339kt

 

Physical

Bid-offer spreads remain wide, with only very limited spot buying interests reported. Low-rank was offered at $22.25-23.25/t FOB, basis 3,800 kc NAR, for a September loading geared vessel. A bid was heard at $22.00/t FOB, basis 3,800 kc NAR, for a late September, early October loading geared vessel. An October loading geared vessel was also heard bid at $21.75/t FOB, basis 3,800 kc NAR, against an offer at $24.25/t FOB, same basis. A bid was reported at $22.25/t FOB, basis 3,800 kc NAR, with an offer at $25.25/t FOB, same basis, for a geared vessel loading in November. On an index-linked basis, 3,800 kc NAR was heard offered at flat to M42 for a September loading geared vessel. Further out, geared vessels were reported bid at M42 minus $0.85/t against offers at minus $0.15/t, basis 3,800 kc NAR, for October or November loading.

 

Paper

M42 traded via SGX at $23.25 for 25,000 t for September, which is up marginally on the last traded level for September at $23.20 last week. Later in the day, September was bid at $22.00 and offered at $23.50, while October was bid at $23.05 and Q4-20 was bid at $24.50. Spreads were more prevalent, with October vs September bid at M42 minus $1.05 and offered at minus $0.75. November vs December was bid at minus $1.25 and offered at minus $0.75. Further out, Q4-20 vs Q1-21 was bid at minus $2.75 and offered at minus $1.55.

 

Source: IHS Markit