SGX M42F Thermal Coal - Daily Update 28 July 2020

66kt traded in Tuesday T Session 

• Aug-20 traded 30kt @ $25.40 (Aug-20/Sep-20 spread @ $ 0.80)

• Sep-20 traded 30kt @ $26.20 (Aug-20/Sep-20 spread @ $ 0.80)

• Q4-20 traded 6kt @ $27.90

 

July month-to date:

Futures volume at 355kt, Open interest at 438kt

 

Total volume since January 2020: 2,090kt

 

Physical

Activity remains lackluster, with wide bid-offer spreads reported across most Asian thermal markets. For Indonesian low-rank, a deal for a branded cargo of low-sulphur material was heard done at $26.20/t FOB, basis 4,200 kc GAR, for a geared vessel loading in August. However, more standard low-rank, also for August loading geared vessels, were heard bid at $24.00/t FOB, basis 3,800 kc NAR, against offers at $25.75-26.50/t FOB, same basis. For September loading geared vessels, a bid was reported at $24.85/t FOB, basis 3,800 kc NAR, with offers at $26.40-27.00/t FOB, same basis.

 

Paper

M42 traded via SGX for an August vs September spread at minus $0.80 for a total of 60,000 t, with each leg pegged at $25.40 for August and $26.20 for September. Further out, Q4-20 traded at $27.90 for 6,000 t. Later in the day, August was bid at $25.30 and offered at $25.75, with September bid at $26.05 and offered at $26.50, while October was bid at $26.75 and offered at $27.25. Further out, Q4-20 was bid at $27.75 and offered at $28.25, with Q1-21 bid at $28.75 and offered at $31.25.

 

Source: IHS Markit.