SGX M42F Thermal Coal - Daily Update 28 January 2020

January month-to date:

Futures volume at 37kt, Open interest at 293kt

 

Total volume since January 2020: 37kt

 

Physical

Coal prices in Indonesia remained supported last week by some weather-related tightness ahead of the Lunar New Year holidays. However, concerns have grown regarding post-holiday demand on the back of the fatal Wuhan Coronavirus outbreak in the past week. Several international traders expressed caution over a potential slowdown in Chinese industrial activity amid the epidemic. Enquiries from India were also understood to have improved, several Indonesian suppliers remarked, although this was from a low base the week before. Low c.v. material traded at levels slightly higher than the previous week with February loading geared vessels settled at $35.00-35.50/t FOB, basis 3,800 kc NAR. A deal for a March loading Panamax was done at $36.15/t FOB, basis 3,800 kc NAR. On an index-linked basis, a trade was concluded at M42/ICI4 flat, basis 4,200 kc GAR, for a February loading geared vessel.

 

Paper

Last week trading activity for M42, as traded via SGX, picked up with February deals concluded at $35.20/t at the start of the week, rising to $35.75/t on Friday. Fair value for the Q2 contract averaged $34.75/t, up from $34.50/t a week back.

 

Source: IHS McCloskey