SGX M42F Thermal Coal - Daily Update 13 November 2019

53kt traded in Wednesday T session

• Dec-19 traded 30kt @ $33.75

• Dec-19 traded 15kt @ $33.45

• Jan-20 traded 5kt @ $33.70

• Feb-20 traded 3kt @ $33.70

 

November month-to date:

Futures volume at 145kt, Open interest at 162kt

 

Total volume since January 2019: 1094kt

 

Physical

Thermal market activity in Asia remains lacklustre, as price expectations from buyers declines, following weaker domestic prices in China and Beijing's ongoing tightening of import restrictions across various ports. Buying interest for Indonesian cargoes was subdued. Indian traders were showing interest although bids were said to be considerably below where producers were willing to offer, holding at similar levels to those seen earlier in the week. For low-rank, a December loading geared vessel was heard bid at $32.95/t FOB, basis 3,800 kc NAR, against offers heard at $34.50-34.70/t FOB, same basis. On an index-linked basis, a December loading Supramax of 4,200 kc GAR material was at $0.00/t against a basket of M42 and ICI4.

 

Paper

It was an active day for M42 paper on SGX. Three trades for December were done at $33.75, for 10,000 t each, with a further 15,000 t done lower at $33.45. This is down from the $34.00 level it traded at yesterday. January 2020 traded at $33.70 for 5,000 t, while February traded at the same price for 3,000 t. Following the deals, November was bid 33.60 and offered at $34.20, while December was bid at $33.10 and offered at $34.05. Meanwhile, January was bid at $33.15 and offered at $33.90, and February was bid at $33.40 and offered at $33.90. Q1-20 was bid at $33.35 and offered at $34.05.

Source: IHS McCloskey.