SGX M42F Thermal Coal - Daily Update 16 February 2021

5kt traded in the Tuesday T session

 

NLT

• Apr-21 traded 5kt @ $38.50

Swaps

February month-to date:

Futures Volume at 466kt, Open Interest at 911kt

Swaps Volume at 0kt, Open Interest at 30kt

 

Total volume since January 2021: 1,935kt

 

Physical

Supply remains tight out of Indonesia with producers still focusing on catching up following the weather related delays they have been battling. The heavy rains are starting to abate, but conditions are still not good. Expectations are that performance will only be back to normal in March, under the current trajectory of improvement. Market wise, activity remains slow with China still out on holiday and prices currently above where most Indian buyers are interested in transacting. For low-rank, fair value was still being quoted at around $39.00/t FOB, basis 3,800 kc NAR, for March loading geared vessels. An offer was reported at $42.00/t FOB, basis 4,200 kc GAR, for a March loading Panamax, although no bid was heard.

 

Paper

M42 traded at $38.50 for April in a slow day for Asian paper trading. The deal was done at the same value as the last April deal done last week. During the day, M42 was bid at $39.35 and offered at $40.50 for February, while March was bid at $38.00 and offered at around $40.75. April was offered at $39.00. A spread for March vs April was bid at M42 plus $0.75 and offered at plus $1.75. Offers for April vs May and May vs June were also heard at plus $1.50.

 

Source: IHS Markit