SGX M42F Thermal Coal - Daily Update 5 November 2019

November month-to date:

Futures volume at 50kt, Open interest at 128kt

 

Total volume since January 2019: 999kt

 

Physical

Prices have started to soften in Asian thermal markets, amid concerns that tighter import controls in China will dent demand of international coal supplies in the remainder of the year. Offers continue to dominate the market for Indonesian supplies. A Panamax was understood to have traded at $35.00/t FOB, basis 3,800 kc NAR, for November loading. This is down on last week's trading levels for Panamaxes at $36.25/t FOB, basis 3,800 kc NAR. Bids were hard to come by, although one was reported at $31.50/t FOB, basis 4,200 kc GAR, for a late November, early December loading geared vessel.

 

Paper

M42, listed on SGX, continued to weaken, following deals late Monday night at $33.95 for November and $33.85 for Q1-20. Today November was at bid at $31.75 and offered at $34.10, while December was bid at $32.25 and offered at $34.05. January was bid at $32.75 and offered at $34.25. Further out, Q1-20 was bid at $33.60 and offered at $34.10, with Q2-20 bid at $33.10 and offered at $35.25. Calendar-20 was bid at $33.60 and offered at $34.85.

 

Source: IHS McCloskey