SGX M42F Thermal Coal - Daily Update 29 January 2021

15kt traded in the Thursday T+1 session

• Feb-21 traded 10kt @ $44.75

• Mar-21 traded 5kt @ $42.25

 

50kt traded in the Friday T session

• Feb-21 traded 15kt @ $43.00

• Apr-21 traded 25kt @ $39.25

• Feb-21 traded 5kt @ $44.50 (Feb-21/Mar-21 spread @ $2.50)

• Mar-21 traded 5kt @ $42.00 (Feb-21/Mar-21 spread @ $2.50)

 

January month-to date:

Futures Volume at a record of 1,439kt, Open Interest at 767kt

 

Total volume since January 2021: 1,439kt

 

Physical

Prices for Indonesian material quickly softened in the week as demand from China began to wane for February and March loading cargoes against a backdrop of fast weakening domestic Chinese coal prices. Loading out of major anchorages in Kalimantan and Sumatra is understood to be peppered with delays due to still heavy rain. However, its impact on supply tightness is not being felt, market sources say.

Low-rank material traded at $46.00/t and $48.50/t FOB, basis 3,800 kc NAR, for a February loading geared vessel and Panamax respectively. This was down on the week from $49.00-51.50/t FOB, same basis. March transacted at a lower level of $45.50/t FOB, basis 3,800 kc NAR, for a geared vessel. On an index-linked basis, March was bid at M42 plus $0.45-0.55/t, basis 3,800 kc NAR, against offers at M42 plus $4.05/t, same basis. April markets were bid at M42 plus $0.35-0.45/t, basis 3,800 kc NAR, against offers at M42 plus $3.05/t, same basis.

 

Paper

It was a record month for M42 volumes on SGX with, 1.4 million tonnes being transacted, up on December's record which fell just short of 1.0 million tonnes. Asian swaps traded at lower levels on the week not unlike price movements in the physical market. M42 deals went through via SGX at $43.00-45.00/t for February, falling from $46.75-52.00/t, last week. Trades for March concluded at $41.25-42.85/t, sharply down from $43.25-49.00/t a week ago. April trades were done at $39.25-40.25/t, tumbling from $45.75/t, the week before.

 

Source: IHS Markit