SGX M42F Thermal Coal - Daily Update 5 August 2019

26kt traded in Monday T session

Aug-19 traded 5kt @ $32.85

Aug-19 traded 5kt @ $33.05

Sep-19 traded 5kt @ $32.85

Sep-19 traded 5kt @ $33

Q4-19 traded 6kt @ $33.05

 

August month-to date:

Futures volume at 66kt, open interest at 151kt

Total volume since April 2018: 1.12 million metric tonnes

 

Physical

Demand for Indonesian material from China and India remained muted with several players saying only indicative bids were heard today. Several miners from East and South Kalimantan are understood to be facing difficulty barging shipments along the Mahakam and Barito Rivers due to inconsistent water levels. This has caused delays that have stretched over a week long for some suppliers. However, currently weak demand will do little to support price levels, an industry source said. An October loading geared vessel was understood to have traded at around $33.50/t FOB, basis 3,800 kc NAR, late last week.

 

Paper

M42 paper, listed on SGX, traded in the range of $32.85-33.05 for August, and $32.85-33.00 for September. Q4-19 traded at $33.05. The August contract set a new record as the most traded contract for M42 since inception in April 2018, with 155,000 t traded so far. This is up on the June 2019, which previously held the record at 140,000 t and indicates the continuing growth in momentum for M42 derivatives. Following the deals August was bid at $32.00 and offered at $33.85, with September bid at $32.00 and offered at $33.20. Further out, Q4-19 was bid at $32.05 and offered at $33.20, with Q1-20 bid at $33.15 and offered at 36.10. Spreads were reported for August v September bid at plus $0.10 and offered at plus $0.35, with September v October bid at flat $0.00 and offered at plus $0.20.