SGX M42F Thermal Coal - Daily Update 30 July 2020

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50kt traded in Thursday T Session 

• Aug-20 traded 50kt @ $25.10

 

July month-to date:

Futures volume at 405kt, Open interest at 359kt

 

Total volume since January 2020: 2,140kt

 

Physical

Supply tightness rather than increased demand supported prices over the week. Buying interest seemed to soften over the week, especially from China, although Indian buyers were seeking some prompt cargoes. Multiple producers said they were not offering August loading material just yet, and certainly not at current levels. "We are preparing to offer for September but the bids we are getting so far are still too low," said a source from a key sub-bituminous supplier. Supply tightness in recent weeks caused by heavy rainfall is understood to have eased, but miners do not appear to be in a rush. At the start of the week, low sulphur material loading in August was heard traded at $26.20/t FOB, basis 4,200 kc GAR. Prices began to slip in the latter part of the week with August loading geared vessels trading at $25.00-25.75/t FOB, basis 4,200 kc GAR. Over the week, however, deals were generally higher than those transacted the previous week at $24.50-25.50/t FOB, same basis.

 

Paper

M42 swaps traded via SGX at weaker levels on the week with deals for August M42 trading at $25.10-25.40/t, down from $25.55-26.05/t. September M42 traded at $26.15-26.20/t, compared with $26.35-26.80/t last week. A deal also went through for a M42 Q4 contract at $27.90/t, easing slightly from $28.00/t, a week back. Total volume for the week was 136,000 t.

 

Source: IHS Markit.