SGX M42F Thermal Coal - Daily Update 9 March 2020

105kt traded in Monday T Session

• Mar-20 traded 20kt @ $33.50

• Mar-20 traded 5kt @ $33.25

• Mar-20 traded 30kt @ $33

• Mar-20 traded @ 25kt @ $32.85

• Apr-20 traded 25 kt @ $33.50

March month-to date:

Futures volume at 250kt, Open interest at 418kt

Total volume since January 2020: 702kt

Physical

Rapidly falling oil prices weighed heavily on trading across equity and commodity markets in Asia. For coal, paper markets were the most immediately hit, and this created uncertainty for physical market participants who were said to be taking a cautious stance. For Indonesian low-rank, miners were still hoping to get a number starting with $34/t for 4,200 kc GAR material, although buyers appeared to be pulling back from this level. An offer was reported at $34.00/t FOB, basis 3,800 kc NAR, for an April loading geared vessel.

Paper

Paper markets were under strong downwards pressure today, following a sharp slump in oil prices. M42 paper, as listed on SGX, traded five times in the Singapore morning session for a total of 50,000 t. March traded first at $33.50, followed by $33.25, while April traded at $33.50. This was down on Friday's transacted levels of $33.75 for both March and April. Early in the afternoon, March traded another three times at $33.00 for a total of 30,000 t. March traded again later in the afternoon, lower still at $32.85 for 25,000 t. Earlier in the afternoon, March was heard bid at $32.50 and offered at $33.85, while April was bid at $32.00 and offered at $33.40. Total volume for Q1-20 now stands at 702,00 t, 26% higher than the previous record set in Q4-19 of 555,000 t. The March 2020 product is also the most traded M42 product since launch standing at 439,000 t, up on the previous record set in February 2020 of 279,000 t.

Source: IHS McCloskey.