SGX M42F Thermal Coal - Daily Update 1 February 2021

32kt traded in the Monday T session

    Feb-21 traded 15kt @ $42.75

    Feb-21 traded 5kt @ $44.00

    Feb-21 traded 5kt @ $39.75

    Feb-21traded 7kt @ $39.50

10kt traded in the Monday T+1 session

    Feb-21 traded 5kt @ $39.65 (Feb-21/Mar-21 spread @ $1.65)

    Mar-21 traded 5kt @ $38.00 (Feb-21/Mar-21 spread @ $1.65)

February month-to date:

Futures Volume at 42kt, Open Interest at 792kt

Total volume since January 2021: 1,481kt

 

Physical

Thermal suppliers were finding it difficult to attract bids for cargoes amid fast falling prices and waning demand from China. Indian buyers continued to exercise restraint in their appetite for Indonesian material. "It is quite worrying with prices (going) down so quickly. Will buyers who bought at high prices perform?" a Jakarta-based trader questioned. For low-rank, offers were reported at $41.75-43.75/t FOB, basis 3,800 kc NAR, for a geared vessel loading in March. An offer for an April loading geared vessel was at $42.50/t FOB, basis 3,800 kc NAR.

 

Paper

M42 paper fell sharply over the day. A deal from late Friday cleared at $44.00 for February early in the morning. However, deals went through lower later in the day at $39.65-42.75. March traded at $38.00, which is down from $42.00 where it last traded on 29 January. Through the day, February was bid at $38.50 and offered at $41.25, while March was bid at $40.00 and offered at $41.10. April was bid at $37.50 and offered at $39.50, with May bid at $33.50 and offered at $39.00. An offer for Q4-21 was also heard at $39.75. A spread for February vs March was bid at M42 plus $1.00 and offered at plus $2.75 and March vs April was bid at plus $1.25 and offered at plus $2.50. April vs May was bid at M42 plus $0.50 and offered at plus $2.00.

 

Source: IHS Markit