SGX M42F Thermal Coal - Daily Update 5 August 2020
Thursday, August 6 2020 - 06:09 PM WIB
40kt traded in Wednesday T Session
Aug-20 traded 10kt @ $24.75 (Aug-20/Sep-20 spread @ $0.70)
Sep-20 traded 10kt @ $25.45 (Aug-20/Sep-20 spread @ $0.70)
Sep-20 traded 10kt @ $25.70 (Sep-20/Oct-20 spread @ $0.80)
Oct-20 traded 10kt @ $26.50 (Sep-20/Oct-20 spread @ $0.80)
August month-to date:
Futures volume at 54kt, Open interest at 372kt
Total volume since January 2020: 2,194kt
Physical
Clearer weather in parts of South Kalimantan has allowed for improved production activity for some miners, which, up until a fortnight ago was challenged by heavy rains. "Production has recovered but the market is very slow, with bids heard at around $25.00/t FOB, basis 4,200 kc GAR, for end-August geared vessels," a source from low-rank producer said. Another miner remarked that buyers and sellers were muted this week. Offers were still more prevalent than bids for Indonesian material. For low-rank, a bid for a September loading geared vessel was heard at $24.00/t FOB, basis 3,800 kc NAR. Offers were reported at $26.00/t FOB, and $25.50/t FOB, basis 3,800 kc NAR, for geared vessels loading in August and September, respectively. For October loading geared vessels, a bid was reported at $24.50/t FOB, basis 3,800 kc NAR, against an offer at $26.50/t FOB, same basis. Further out, an offer was reported at $29.50/t FOB, basis 3,800 kc NAR, for Q4-20 loading geared vessels. On an index-linked basis, a market for a September loading geared vessel of 3,800 kc NAR material was heard yesterday, bid at M42 minus $0.70/t, against an offer at minus $0.10/t.
Paper
M42, listed on SGX, traded at $25.70 and $25.45 for September for 10,000 t per trade, while $24.75 for August and $26.50 for October, traded at 10,000 t each. During the day, August was bid at $24.45 and offered at $25.00, with September bid at $25.10 and offered at $25.75, and October offered at $27.15. Further out, Q4-20 was bid at $27.35 and offered at $28.00. Spreads activity was reported, with a bid for August vs September heard at minus $0.95, while September vs October was bid at minus $0.95 against an offer at minus $0.65.
Source: IHS Markit