SGX M42F Thermal Coal - Daily Update 3 July 2020

5kt traded in Friday T Session

    Jul-20 traded 5kt @ $24.25

July month-to date:

Futures volume at 5kt, Open interest at 234kt

Total volume since January 2020: 1,740kt

 

Physical

Demand continues to retreat at a more rapid rate than Indonesian production cuts, keeping a lid on prices for another week. "Our output was reduced by 30% last month and showers are challenging operations a bit. But there's little effect on prices," a source from a South Kalimantan miner said. Low-rank material traded at $23.00-24.00/t FOB, basis 3,800 kc NAR, for July loading geared material. Last week, deals were settled at $23.25-24.40/t FOB, same basis. A market for August was seen bid at $23.00-23.25/t FOB, basis 3,800 kc NAR, against offers at $26.00/t FOB, same basis, for geared vessels, reflecting a still wide bid-offer gap. Production and loading activity in parts of South Kalimantan are understood to be slightly impacted by heavy rain and high swells at sea, while in East Kalimantan the number of COVID-19 cases has risen. However, there has been no significant impact on mining activity so far.

 

Paper

It was a slow week for Asian paper markets, although M42 traded on Friday at $24.25. A Q4 M42 market was seen bid via SGX at $27.20/t, against an offer at $28.00/t. A week ago, a deal for a Q4 contract settled at $27.25/t. Q1-21 for M42 was bid at $27.50/t, against an offer at $30.25/t.

 

Source: IHS Markit