SGX M42F Thermal Coal - Daily Update 6 March 2020

55kt traded in Friday T Session

    Mar-20 traded 30kt @ $33.75

    Apr-20 traded 25kt @ $33.75

 

March month-to date:

Futures volume at 145kt, Open interest at 343kt

 

Total volume since January 2020: 597kt

 

Physical

Indonesian coal prices eased further this week with demand remaining subdued and production levels restrained. Low-rank coal transacted at $33.50-33.75/t FOB, basis 4,200 kc GAR, for March loading geared vessels, down on the week from $34.50-35.00/t FOB, basis 3,800 kc NAR, for the same volume and loading month. Markets for April were bid at $33.00-33.45/t FOB, basis 3,800 kc NAR, against offers at $34.50-35.05/t FOB, same basis. On a China-delivered basis, a low c.v. trade was recorded at $40.30/t CFR, basis 3,800 kc NAR, significantly down from transacted levels last week at $41.50/t CFR, same basis.

 

Paper

Momentum was maintained for M42 paper trading this week with 145,000 t trading. Most of the activity was for the prompt month, which traded at $33.75-34.15/t, down on the week. April M42 traded at $33.75-34.00/t, in line with last week's range. Q1-20 has now exceeded the volume record set in Q4-19, with 597,000 t trading between 1 January and 6 March 2020, compared with the previous record of 555,000 t set between October 1 and December 31 2019. Markets were last reported bid at $33.50 and offered at 34.00 for March, while April was bid at $33.40 and offered at $34.00.    

 

Source: IHS McCloskey