SGX M42F Thermal Coal - Daily Update 30 January 2020

65kt traded in Thursday T Session

• Feb-20 traded 10kt @ $35.25

• Feb-20 traded 10kt @$35

• Feb-20 traded 15kt @ $34.90

• Feb-20 traded 20kt @ $34.80

• Mar-20 traded 5kt @ $35.35

• Mar-20 traded 5kt @ $34.70

 

January month-to date:

Futures volume at 112kt, Open interest at 301kt

 

Total volume since January 2020: 112kt

 

Physical

A little more market activity was reported in Asia, although it was up on a low base arising from the Lunar New Year holiday. The main focus now though is on the outbreak of the coronavirus, which started in Hubei Province, and how badly this will impact first quarter demand in China and across the region. Indonesia remained quiet, although sellers are still holding offers at levels higher than they were at the beginning of the Lunar New Year holiday, but due to China being on leave they are not really being robustly tested. For low-rank, offers were reported declining through the day from $36.25/t to 35.90/t FOB, basis 3,800 kc NAR, for 50,000 t loading in March, against bids at $34.30-34.45/t FOB, same basis.

 

Paper

Prompt M42 paper softened sharply amid concerns on Chinese demand. M42 traded on SGX for February at $35.25, $35.00, $34.90 and 34.80, for a total of 55,000 t, while March traded at $35.35 and $34.70 for a total of 10,000 t.

 

Source: IHS McCloskey.