SGX M42F Thermal Coal - Daily Update 18 June 2020

11kt traded in Thursday T Session

    Aug-20 traded 5kt @ $27

    Q4-20 traded 6kt @ $27.45

June month-to date:

Futures volume at 375kt, Open interest at 394kt

Total volume since January 2020: 1,623kt

 

Physical

Activity in Asia's thermal markets has been lackluster, partially because of participants awaiting the result of a Chinese power generator's tender before committing to new cargoes. Some in China expect the outcome of this tender to provide a strong indicator as to how weak the market is, particularly for Indonesian low-rank. Rising freight rates were also disadvantaging sellers. For Indonesian low-rank, a bid was heard at $23.00/t FOB, basis 3,800 kc NAR, for a geared vessel loading in July. For August loading, a bid was reported at $25.00/t FOB, basis 3,800 kc NAR, for a geared vessel. There was talk of a deal done at $23.75/t FOB, basis 3,800 kc NAR, for July loading geared vessel although this could not be confirmed at the time of writing.

 

Paper

M42, listed on SGX, traded at $27.00 for August and for Q4-20 at $27.45. During the day, June was bid at $25.50 and offered at $26.00, while July was bid at $25.80 and offered at $26.55. Bids were also reported at $26.25 for both August and September, while a market for November was bid at $26.40 and offered at $27.60. Q3-20 was bid at $26.20 and offered at $27.15, with Q4-20 bid at $27.20 and offered at $27.45.

 

Source: IHS Markit