SGX M42F Thermal Coal - Daily Update 13 March 2020

10kt traded in Friday T Session

• Apr-20 traded 10kt @ $32.25

 

March month-to date:

Futures volume at 375kt, Open interest at a RECORD 468kt

 

Total volume since January 2020: 827kt

 

Physical

Indonesian coal prices continued to fall this week as demand remains weak, amid the worsening COVID-19 pandemic and overall sustained softness in demand. Low-rank coal traded at $32.00-33.00/t FOB, basis 4,200 kc GAR, for April loading geared vessels. Last week, March loading geared vessels traded at $33.50-33.75/t FOB, same basis. Buyers of Indonesian coal are understood to be stalling over May bookings in view of a contentious shipping requirement for Indonesian coal exports, which is set to take effect on 1 May. Markets for May were bid at $30.00/t FOB, basis 3,800 kc NAR, for geared vessels, against offers at $34.00-35.00/t FOB, same basis.

 

Paper

M42, as listed on SGX, achieved a record trading volume of 205,000 t over the week. Deals went through for March at $33.50/t at the start of the week before prices eased to $32.85/t at the week's close. Similarly, trades for April were also concluded in a similar price range of $32.25-33.50/t, easing along the week. Transacted prices for both months were lower than last week when deals for March went through at $34.00-34.15/t, while April M42 traded at $33.90-34.00/t.

 

Source: IHS McCloskey.