SGX M42F Thermal Coal - Daily Update 21 January 2021

85kt traded in the Thursday T session

    Feb-21 traded 20kt @ $49.75

    Mar-21 traded 20kt @ $47.00

    Mar-21 traded 5kt @ $45.00

    Feb-21 traded 20kt @ $49.75 (Feb-21/Mar-21 spread @ $2.50)

    Mar-21 traded 20kt @ $47.25 (Feb-21/Mar-21 spread @ $2.50)

10kt traded in the Thursday T+1 session

    Feb-21 traded 10kt @ $48.00

January month-to date:

Futures Volume at a record of 1,034kt, Open interest at a record of 985kt

Total volume since January 2021 at a record of: 1,034kt

 

Physical

Tightness for January and February cargoes remained as extreme weather continues to challenge supply out of Indonesia. Another miner was heard to have defaulted on deliveries following flooding at the mines, although this could not be confirmed. Further out, Chinese traders are becoming increasingly cautious about booking new cargoes, following a sharp decline in Chinese future prices. An offer was heard at $52.00/t FOB, basis 3,800 kc NAR, for a February loading geared vessel, although bids were hard to come by.

 

Paper

M42 volumes passed 1 million tonnes traded on SGX for the month of January 2021. This is the first time M42 has traded over 1 million tonnes in a single month, having fallen just short last month, (December 2020 at 976,000 t). Prices were softening for prompt months, trading at $48.00 - $49.75 for February and $45.00 - $47.25 for March. Earlier in the day, M42 was heard bid for January at $46.85 and offered at $48.50, while February was bid at $46.15 and offered at $50.00. March was bid at $45.15 and offered at $47.25, with May bid at $39.50 and offered at $45.25. Further out, Q4-21 was offered at $40.00. A spread for February vs March was bid at M42 plus $2.35 and offered at plus $2.90 and March vs April was bid at plus $1.50 and offered at plus $2.85. April vs May was bid at M42 plus $1.00 and offered at plus $2.50.

 

 

Source: IHS Markit