SGX M42F Thermal Coal - Daily Update 5 March 2021

25kt traded in the Friday T session

NLT

    Apr-21 traded 25kt @ $37.75

Swaps

    NIL

10kt traded in the Friday T+1 session

NLT

    Apr-21 traded 10kt @ $37.75

Swaps

    NIL

March month-to date:

Futures Volume at 120kt, Open Interest at 651kt

Swaps Volume at 0kt, Open Interest at 50kt

Total volume since January 2021: 2,242kt

 

Physical

Prices for Indonesian low-rank coal continued to soften as freight rates remained firm, but improved Newcastle traded levels provided support for higher c.v. Indonesian material. Spot deals were heard settled at lower prices on the week with offers abound amid a lack of bids. However, further out in May more bids emerged with no offers in return. "Indonesia is still dealing with tightness, miners are not producing at optimal levels. It seems like there is a bit of a mismatch," said the source from low-rank South Kalimantan miner. "We have some buyers who need coal, who is willing to pay now and are offering higher prices but you also have Indian buyers who are not in a hurry." Deals for low-rank coal were heard settled at $38.00-40.00/t FOB, basis 3,800 kc NAR, for March and at $38.00-38.50/t FOB, same basis, for April. Multiple bids emerged for May at $35.00-36.50/t FOB, basis 3,800 kc NAR, for geared vessels, but failed to attract any offers.

 

Paper

Asian paper trading activity remained robust with March deals settling via SGX at $37.25-37.75/t, falling sharply from traded levels for the month last week at $37.25-40.40/t. April deals were done at $36.55-38.20/t, compared with $37.00-39.65/t in the week prior.

 

Source: IHS Markit