SGX M42F Thermal Coal - Daily Update 1 July 2020
Thursday, July 2 2020 - 05:51 PM WIB
July month-to date:
Futures volume at 0kt, Open interest at 239kt
Total volume since January 2020: 1,735kt
Physical
Wet weather in parts of South Kalimantan has slowed down operations for several miners. A mining source said, "We have cut back on production by 30% for June." This, however, has not had any impact on prices yet, given weak demand out of China and India. For low-rank, offers were reported at $24.50-24.75/t FOB, basis 3,800 kc NAR, for July loading geared vessels. Bids were said to be around $23.00-24.00/t FOB, basis 3,800 kc NAR, also for geared vessels loading in July. For an August loading geared vessel, a market was reported bid at $23.25/t FOB, basis 3,800 kc NAR, against an offer at $26.25/t FOB, same basis.
Paper
M42, listed on SGX, was bid for July at $24.25 and offered at $25.00, with August offered at $26.50. Further out, Q3-20 was bid at $24.75 and offered at $27.00, while Q4-20 was bid at $26.10 and offered at $28.00. Into next year, Q1-21 was bid at $27.50. An offer for a spread of July vs August was reported at M42 minus $0.50.
Source: IHS Markit