SGX M42F Thermal Coal - Daily Update 27 December 2019

December month-to date:

Futures volume at 258kt, Open interest at 285kt

 

Total volume since January 2019: 1,372kt

 

Physical

With the exception of several deals for low c.v. coal, trading activity for Indonesian material has been minimal over the past week, as the year draws to a close. Uncertainty over China's import restrictions continues to keep buyers at bay, though a Jakarta-based trader said that there was some increase in interest this week. Low c.v. material traded at $33.75-34.00/t FOB, basis 3,800 kc NAR, for a January loading geared vessel, easing from transacted levels last week at $34.00/t FOB, same basis. Similar material was offered at $34.00-34.50/t FOB, basis 3,800 kc NAR, also for January loading geared vessels, but no bids were heard against. On a China-delivered basis, low-rank material traded at $40.75-41.40/t CFR, basis 3,800 kc NAR, for January arrival Panamaxes.

 

Paper

Several paper deals for M42 were settled over the week via SGX. January traded at $33.70/t, down on the week from $33.95/t, while February transacted twice at $33.95/t, flat on the week. This pushed up December's total traded volume up to a record 258,000 t and Q4-20 to 530,000. On Friday, markets were reported bid at $33.40 and offered at $34.00 for January, while February was bid at $33.60 and offered at $34.10.

Source: IHS McCloskey.