SGX M42F Thermal Coal - Daily Update 19 June 2020

6kt traded in Thursday T+1 Session

    Q4-20 traded 6kt @ $27.30

95kt traded in Friday T Session

    Jul-20 traded 65kt @ $26.25

    Q3-20 traded 30kt @ $26.75

June month-to date:

Futures volume at 476kt, Open interest at 365kt

Total volume since January 2020: 1,724kt

 

Physical

Indonesian coal suppliers are struggling to settle deals for the third quarter of the year as traded levels eased further over the week. "It's really daunting selling into the China market. We're trying to hold our cargo as much as possible because the bidding levels have been ridiculous," a low-rank South Kalimantan miner said. Low-rank material transacted for a cross June/July laycan at $24.00/t FOB, basis 3,800 kc NAR, for a geared vessel, while a July loading cargos traded at $23.75-23.85/t FOB, same basis. On an index-linked basis, an offer was heard for a July loading geared vessel at M42/ICI4 flat, basis 4,200 kc GAR.

 

Paper

It was a strong week for M42 activity with 124,000 t being cleared. Multiple deals for M42 went through via SGX at $26.25/t for July over the week, in the middle of where trades went through the previous week at $25.65-26.65/t. August concluded at $26.50-27.00/t, while Q3-20 traded at 26.75, with Q4-20 deals settled at $27.30-27.45/t. Friday saw a new record for volume in a single trade of 65,000 t, for July at $26.25.

 

 

Source: IHS Markit