SGX M42F Thermal Coal - Daily Update 10 February 2021

20kt traded in the Wednesday T session

    Mar-21 traded 5kt @ $38.75

    Mar-21 traded 15kt @ $38.50

February month-to date:

Futures Volume at 449kt, Open Interest at 904kt

Total volume since January 2021: 1,888kt

 

Physical

Indonesian suppliers remained cautious in offering cargoes amid a lack of clarity in the direction the market would take post-Lunar New year. A number of producers said it appeared baffling that prices softened even as they struggle to meet strong domestic demand and contend with a persistently challenging monsoon. Even as the market is quiet ahead of the Lunar New Year holiday, short covering was still being sought by some Chinese buyers. For low-rank, a bid was heard at $35.00-39.00/t FOB, basis 3,800 kc NAR, for a March loading geared vessel, with the bid level highest for shipments loading in the first half of the month and weakening for later laycans. An offer was also heard at $39.00/t FOB, basis 3,800 kc NAR, for a Panamax loading in the second half of March. On an index-linked basis, value was being pegged at around M42 plus $0.50/t for later March loading geared vessels of 3,800 kc NAR material.

 

Paper

M42 traded at $38.50-38.75 for March, up on the last trading level the day before at $38.45. During the day, February was heard bid at $38.50. March was bid at $38.25 and offered at $38.75. A bid for Q2-21 was reported at $37.00. A spread for March vs April was bid at M42 plus $0.50 and offered at plus $1.75, while April vs May was bid at $plus $0.50 and offered at plus $1.50. A spread for May vs June was bid at flat to M42 ($0.00) and offered at plus $1.75.

 

 

Source: IHS Markit