SGX M42F Thermal Coal - Daily Update 5 July 2019

July month-to date:

Futures volume 21kt, open interest 41kt

Total volume since April 2018: 850kt

 

Physical

Indonesian coal prices appear to have benefitted from a flurry of tender activity from end-users in Taiwan, South Korea and China this week. Slight firming was noted across most grades of standard spec Indonesian material.. Low-rank material loading in August traded at $36.20/t FOB, basis 3,800 kc NAR, for a geared vessel, while July loading Panamaxes traded at $37.25-37.50/t FOB, basis 3,800 kc NAR, compared with $36.80-37.50/t FOB, same basis, last week. Trades for geared vessels loading in July settled at $35.50-36.20/t FOB, basis 3,800 kc NAR, growing modestly on the week from $35.80-35.75/t FOB, same basis. An index-linked deal for 4,200 kc GAR cargo in July loading geared vessel was sold at M42/ICI4 flat.

 

Paper

M42, as listed on SGX, transacted at $35.30/t several times last week for the Q4 contract. This was lower than where value was pegged for the period the previous week at $36.10/t. Bids for July were seen at $35.60/t, against offers at $36.10/t. Last week, fair value for July averaged $35.65/t. The August contract for M42 averaged $35.65/t, firming from $35.60/t.