SGX M42F Thermal Coal - Daily Update 16 October 2020

95kt traded in Friday T session

    Oct-20 traded 50kt @ $28.65

    Oct-20 traded 20kt @ $28.45

    Oct-20 traded 25kt @ $28.40

October month-to date:

Futures volume at 252kt, Open interest at 471kt

Total volume since January 2020: 2,975kt

 

Physical

Coal prices for Indonesian material enjoyed a further boost over the week as China's restrictions on Australian coal left buyers scrambling to secure both low-rank and higher c.v. cargoes of other origins. Multiple trades were heard transacted for low-rank and sub-bituminous material at prices sharply up on the week. However, several Indonesian producers said that opportunities to take advantage of the upward momentum was limited as heavy rains have begun to slow production. "We do not have very much spot cargoes left at this point in the year," the source from a major mid-c.v. supplier said. November loading geared vessels traded at $28.00-29.80/t FOB, basis 3,800 kc NAR. This was a marked rise from traded prices last week at $26.50-27.50/t FOB, basis 3,800 kc NAR, for geared vessels. Further out, trades for similar rank material traded at $28.50/t FOB, basis 3,800kc NAR, for December loading.

 

Paper

Asian futures trading had a good week with 165,000 t of M42 transacting. On Friday, October M42 deals settled at $28.65/t for a 50,000 t parcel, before three more deals went through at $28.40-28.45/t for a further 45,000 t. The previous week, October M42 transacted at $27.75/t. Earlier in the week, November traded multiple times ranging from $28.80-29.75/t, while Q4-20 traded a couple of times, at $29.00/t and $29.40/t.

 

Source: IHS Markit