SGX M42F Thermal Coal - Daily Update 16 July 2020

July month-to date:

Futures volume at 183kt, Open interest at 348kt

 

Total volume since January 2020: 1,918kt

 

Physical

Supply tightness for low c.v. coal in parts of South Kalimantan was heard, amid weeks-long bouts of heavy rain. "June was a very challenging month for us. But July has been worse," a source from a key 4,200 kc GAR supplier said. Another industry source remarked, "It seems like these rainfall levels were not anticipated. Most low-rank miners are trying to reduce cost and unlikely to have made the additional investment required to pump water out of the impacted concessions." For low-rank material, a deal was understood to have been concluded at around $24.40/t FOB, basis 3,800 kc NAR, for an August loading geared vessel. Indian buying interest was said to be around $23.00/t FOB, basis 4,200 kc GAR, for August loading geared vessels, with offers at around $26.00/t FOB, same basis. A September loading geared vessel was heard bid at $24.25/t FOB, basis 3,800 kc NAR, with the best offer said to be around $26.00-26.50/t FOB, same basis. On an index-linked basis, 3,800 kc NAR was heard indicatively offered at M42 minus $0.25/t for an August loading geared vessel.

 

Paper

M42, listed on SGX, was bid for July at $23.75 against an offer at $24.65, while August was bid at $25,50 and offered at $26.75. September was bid at $26.50 and offered at $28.15, with October bid at $27.00 and offered at $29.20. Further out, Q4-20 was bid at $28.00 and offered at $28.75, while Q1-21 was bid at $29.25 and offered at $33.20.

 

Source: IHS Markit