SGX M42F Thermal Coal - Daily Update 12 May 2020

45kt traded in Tuesday T Session

    Q3-20 traded 15kt @ $28.35

    Q4-20 traded 30kt @ $28.35

May month-to date:

Futures volume at 52kt, Open interest at 164kt

Total volume since January 2020: 1,046kt

 

Physical

Despite a few higher bids, trading activity remained lackluster for Indonesian shipments, although sentiment is improving. The Indonesian Price Benchmark (HBA) for May was released, standing at $61.11/t FOB, basis 6,322 kc GAR, and marks the lowest the thermal coal benchmark has been since August 2016. It is also down $4.66/t on $65.77/t in April. For low-rank, offers for May loading shipments were reported at $25.50/t FOB and $26.50/t FOB, basis 3,800 kc NAR, for geared and gearless vessels respectively. A bid for a June loading geared vessel was reported at $23.65/t FOB, basis 3,800 kc NAR. Separately, an offer was also heard at $25.50/t FOB, basis 4,200 kc GAR, for a June loading geared vessel. A July loading geared vessel was also heard bid at $25.00/t FOB, basis 3,800 kc NAR.

 

Paper

M42, listed on SGX, traded at $28.35 for Q3-20 and Q4-20 for 5,000 t a month. Earlier in the day a bid was reported at $24.75 for May. June was bid at $25.25 and offered at $26.15, while July was bid at $25.85. A spread for June vs July was bid at minus $0.80 and offered at minus $0.20. Further out, Q3-20 was bid at $28.00 and offered at $29.25.

 

Source: IHS McCloskey