SGX M42F Thermal Coal - Daily Update 15 November 2019

November month-to date:

Futures volume at 145kt, Open interest at 162kt

 

Total volume since January 2019: 1,094kt

 

Physical

Indonesian coal prices decreased on the week as news of China's import restrictions dampened buying. Trades for low-rank were done at $33.00-33.85/t FOB, basis 3,800 kc NAR, for December loading geared vessels. Last week, December transacted at $34.25/t FOB, basis 3,800 kc NAR, for a geared vessel. Bids for similar material started out in the week at above $33.00/t FOB, basis 4,200 kc GAR, for December loading geared vessels, but market sources said that by Friday, bids had retreated to $31.25/t FOB, same basis. On an index-linked basis a bid was reported at M42/ICI4 flat, basis 4,200 kc GAR, for a December loading geared vessel. Offers for December loading material, however, held relatively steady on the week at $34.00-34.70/t FOB, basis 3,800 kc NAR. On a China-delivered basis, a deal was reported at $40.50/t CFR, basis 3,800 kc NAR, for a Panamax arriving into Guangdong in December.

 

Paper

Activity picked up sharply in the paper market over the week with multiple deals concluded for M42, as traded via SGX. December traded four times at $33.75-34.00, while Jan-19 and Feb-19 both settled at $33.70. Fair value for Q1-2020 averaged $33.70, easing slightly from levels the week before at $33.85.

Source: IHS McCloskey.