SGX M42F Thermal Coal - Daily Update 12 January 2021

60kt traded in the Monday T +1 session

• Mar-21 traded 5kt @ $41.50

• Apr-21 trade 55kt @ $40.00

25kt traded in the Tuesday T session

• Mar-21 traded 5kt @ $41.50

• Mar-21 traded 10kt @ $41.80 (Mar-21/Apr-21 spread @ $1.80)

• Apr-21 traded 10kt @ $40.00 (Mar-21/Apr-21 spread @ $1.80)

 

January month-to date:

Futures Volume at 342kt, Open interest at 690kt

 

Total volume since January 2021: 342kt

 

Physical

Prices continue to be supported by Chinese buying, despite attempts to build stockpiles amid a colder than average winter and limited supply of cargoes to import. Low-rank prices continue to get support from Chinese buying. A deal was understood to have been done for a Panamax loading out of East Kalimantan in February at just under $48.00/t FOB, basis 3,800 kc NAR. An offer was also heard as high as $50.00/t FOB, basis 3,800 kc NAR, for a January loading Panamax. Generally, bids were said to be at around $44.50/t FOB, basis 3,800 kc NAR, for geared vessels loading in late January and early February, although sellers now have their sights set on higher values. Further out, offers were also reported at $46.50-47.50/t FOB, basis 3,800 NAR, for a geared vessels loading in March. Bids for similar were reported at $42.75/t FOB, basis 3,800 kc NAR.

 

Paper

Prompt paper prices were firming again in Asian trading. M42 traded for a spread of March vs April at plus $1.80, with March pegged at $41.80 and April at $40.00. March traded again outright at $41.50. Through the day, M42 was heard bid for January at $45.00 and offered at $47.00, while February was bid at $44.40 and offered at $47.95. March was bid at $44.40 and offered at $47.95, with April bid at $39.70 and offered at $43.50. A spread for February vs March was bid at M42 plus $1.50 and offered at plus $3.00 and March vs April was bid at plus $1.50 and offered at plus $2.20.

Source: IHS Markit