SGX M42F Thermal Coal - Daily Update 31 October 2019

SGX Market Share for October 2019: 62%

October month-to date:

Futures volume at 107kt, Open interest at 115kt

 

Total volume since January 2019: 949kt

 

Physical

Buying interest was down on the previous week with Chinese buyers responding to tightening port restrictions in the south and weakening domestic coal prices. Indian traders appear to still be showing interest but more towards the 3,400-3,800 kc GAR products, while some buyers were watching and waiting to see what direction prices will take before entering the market. Offer levels for low-rank moved lower, with few deals reported so far this week as the gap grew between buyer and seller price expectations. Offers were reported at $34.50-$35.25/t FOB, basis 3,800 kc NAR, depending on the mine, for November loading geared vessels. A market was reported for a December loading geared vessel bid at $33.75/t FOB, basis 3,800 kc NAR, against an offer at $35.25/t FOB, same basis.

 

Paper

M42, listed on SGX, was bid for November at $33.90 and offered at $35.05, while December was bid at $33.80 and offered at $35.00. A spread for November vs December was bid at minus $0.50 and offered at plus $0.45. Further out, Q1-20 was bid at $34.00 and offered at $34.90. Calender-20 was bid at $34.40 and offered at $34.90.

 

Source: IHS McCloskey