SGX M42F Thermal Coal - Daily Update 15 June 2020

June month-to date:

Futures volume at 352kt, Open interest at 383kt

Total volume since January 2020: 1,600kt

 

Physical

Asian thermal markets were watching China for signs of any improvement in the import restrictions which have been squeezing international spot sales into the country over the past couple of weeks. Chinese domestic coal prices, however, continue to rise. Prompt loading Indonesian shipments remain under pressure, as Chinese buying remains limited and India in monsoon season. Low-rank was heard bid for July loading geared vessels at $23.00-24.50/t FOB, basis 3,800 kc NAR, against an array of offers between $25.50-28.00/t FOB, same basis. A Panamax was also heard offered at $26.25/t FOB, basis 3,800 kc NAR, also for July loading. On an index-linked basis, an offer was reported for a July loading geared vessel of 3,800 kc NAR material flat to the average of the corresponding M42 and ICI4 indices.

 

Paper

M42, listed on SGX, was bid at $25.50 and offered at $26.50 for June, while July was bid at $25.50 and offered at $26.25. A market for November was also reported bid at $26.40 and offered at $27.50. A spread for July versus August was reported bid at minus $0.55 and offered at minus $0.25, while August vs September and September vs October were both bid at minus $0.35 and offered at minus $0.10. For Q4-20, a market was bid at $26.35 and offered at $27.50.

 

Source: IHS McCloskey