SGX M42F Thermal Coal - Daily Update 31 May 2019

May month-to date:

Futures volume 60kt, open interest 75kt

 

Total volume since April 2018: 774kt

 

Physical 

Limited buy side interest brought a further decline in Indonesian prices this week, dashing some sellers' hopes of a lift before the week-long Eid Ul Fitr break, starting 5 June.  In the low-rank market, an index-linked trade was heard done at M42/ICI4 plus $0.75/t, basis 3,800 kc NAR, for a June loading Panamax. Trades for low c.v. material settled at $36.50-37.60/t FOB, basis 3,800 kc NAR, for a June loading geared vessel. June loading Panamaxes were heard offered at around $38.00/t FOB, basis 3,800 kc NAR. Geared vessels loading in June were offered at $38.30/t FOB, basis 3,800 kc NAR, against a bid at $38.00/t FOB, same basis. July loading material was offered at $37.75-38.00/t FOB, basis 3,800 kc NAR, for geared vessels, and $37.75-38.50/t FOB for Panamaxes. On a China-delivered basis, deals were done for low c.v. coal at $45.20-45.50/t CFR, basis 3,800 kc NAR, for a June arrival Panamax into Guangdong, compared with deals settled last week at $45.20-45.50/t CFR, same basis.

 

Paper

M42 derivatives, as listed on SGX, traded several times over the week but at significantly lower levels than the previous week. June first traded at $35.90/t and later at $35.25/t, also for the same month, down from $37.50-37.70/t in the week prior. Further out, Q3 2019 was bid at $35.00/t and offered at $36.00/t, while Q4 2019 was bid at $35.00/t and offered at $36.25/t. (ends)