SGX M42F Thermal Coal - Daily Update 7 May 2021

5kt traded in the Friday T session

 

NLT

• Jun-21 traded 5kt @ $54.50

Swaps

• NIL

 

May month-to date:

Futures Volume at 20kt, Open Interest at 612kt

Swaps Volume at 0kt, Open Interest at 0kt

 

Total volume since January 2021: 4,175kt

 

Physical

Indonesian coal prices remained strong over the week, with the low-rank benchmark rising more than $2.00/t despite a quiet first half due to China being on holiday. There was also a lack of trades - the result of still restrained supply. Multiple Indonesian suppliers said that appetite from China was firm but there was a lack of bids as miners did not have many spot cargoes to offer. But momentum remained strong. Few deals were reported for low-rank this week with the highest heard at $55.00/t FOB, basis 3,800 kc NAR, for a June loading geared vessel. In the week prior, deals settled at $51.00-52.25/t FOB, same basis, for June loading geared vessels. A cross loading May/June laycan was offered at $55.00/t FOB, basis 3,800 kc NAR, while further out, an offer for a July loading geared vessel was heard at $53.00/t FOB, same basis. An index-linked offer was heard at M42 plus $2.50/t FOB, basis 3,800 kc NAR, for a gearless vessel loading in May.

 

Paper

The Asian paper market was quieter over the week, although deals were still being concluded at higher levels on the week for M42 via SGX. May M42 traded at $56.25/t, sharply up on the week from $50.25-52.25/t, while June transacted at $54.50-55.00/t versus $48.50-50.75/t last week.

 

Source: IHS Markit.