SGX M42F Thermal Coal - Daily Update 2 December 2020

25kt traded in the Wednesday T session

    Dec-20 traded 5kt @ $33.45

    Dec-20 traded 20kt @ $33.35

5kt traded in the Wednesday T+1 session

    Dec-20 traded 5kt @ $33.40

December month-to date:

Futures Volume 55kt, Open interest at 382kt

Total volume since January 2020: 3,734kt

 

Physical

A few Chinese based traders voiced concerns that they are struggling to get a feel for where value is currently, with some offers seemingly moving higher at a faster pace than they can deal with. Low-rank was heard offered at $34.50/t FOB, basis 3,800 kc NAR, for a December loading geared vessel. A similar cargo for loading in January was heard offered at $34.00/t FOB, basis 3,800 kc NAR. Some Chinese traders were suggesting value was around $32.50-33.00/t FOB, basis 3,800 kc NAR, for December or January loading, although there was talk of an unconfirmed deal at around $34.00/t FOB, same basis. A market for a February loading geared vessel was reported bid at $33.25/t FOB, basis 3,800 kc NAR, and offered at $34.80/t FOB, same basis.

 

Paper

Prompt paper prices were little changed in Asian trading yesterday. M42 traded at $33.35 for December, up on yesterday's $33.00-33.25 trade level. Earlier in the day, M42 was heard bid for December at $33.05 and offered at $33.50, while January was bid at $33.60 and offered at $34.50, with February bid at $33.00 and offered at $34.90.

 

Source: IHS Markit