SGX M42F Thermal Coal - Daily Update 28 December 2020

40kt traded in the Monday T session

• Jan-21 traded 10kt @ $43.35

• Feb-21 traded 15kt @ $41.85 (Feb-21/Mar-21 spread @ $1.70)

• Mar-21 traded 15kt @ $40.15 (Feb-21/Mar-21 spread @ $1.70)

 

December month-to date:

Futures Volume at a record 938kt, Open interest at 522kt

 

Total volume since January 2020: 4,617kt

 

Physical

It was a mostly slow start to the week following the Christmas holiday, although the Chinese market remained active. Traded values for low-rank cargoes were said to have been concluded in the range of $43.50-44.00/t FOB, basis 3,800 kc NAR, for January-loading geared vessels. An offer for a low-rank cargo was heard at $46.00/t FOB, basis 4,200 kc GAR, for a geared vessel loading in January. There were, however, suggestions that some offers had eased, with a Panamax said to have been offered at $43.00-44.00/t FOB, basis 3,800 kc NAR, for January loading. Index-linked bids were reported at M42 plus $0.10/t for 3,800 kc NAR cargoes loading in March and April.

 

Paper

M42 traded for a spread of February vs March at plus $1.70 for 15,000 t on each leg, and marking February at $41.85 and March at $40.15. January also traded at $43.35, up on where it last traded at $35.00. Through the day, M42 was heard bid at $43.25 and offered at $43.40 for January and offered $39.75 for March. Spreads were also heard for January vs February, with bid at M42 plus $1.40 and offered at plus $2.10, while February vs March was bid at plus $1.50 and offered at plus $1.85. Further out, March vs April was bid at M42 plus $1.10 and offered at $1.80.

 

Source: IHS Markit