SGX M42F Thermal Coal - Daily Update 3 July 2019

15kt traded in Wednesday T Session

• Q4-19 traded 15kt @ $ 35.30

 

July month-to date:

Futures volume 15kt, open interest 35kt

 

Total volume since April 2018: 844kt

 

Physical

Tightness for Indonesian low-rank, and to a lesser extent sub-bituminous, has helped support prices so far this week, assisted by additional interest coming from China on the back of recent tender activity. Other buy-side participants, however, remained skeptical that there was any fundamental support for higher prices currently, suspecting it was still only some traders covering short positions. For low-rank, an offer was reported at $37.00/t FOB, basis 3,800 kc NAR, for a July loading Panamax. Panamaxes loading in August were heard offered at $37.00-37.20/t FOB, basis 3,800 kc NAR, with buying interest said to be around $36.65/t FOB, same basis.

 

Paper

M42 paper, listed on SGX, traded at $35.30 for Q4 2019 today, extending open interest out to the end of the year. Nearer term, July was bid at $35.60 and offered at $36.10, while August was bid at $35.50 and offered at $36.15. Further out, Q3-19 was bid at $35.40 and offered at $35.95. Spreads were also reported for September vs October with the bid at $0.05 and the offer at $0.75. Further out still, a spread for Q4-19 vs Q1-20 was also bid at minus $1.50 but offered at minus $0.25. (ends)