SGX M42F Thermal Coal - Daily Update 17 December 2020

8kt traded in the Wednesday T+1 session

• Jan-21 traded 8kt @ $41.00

Record daily volume of 265kt traded in the Thursday session

 235kt traded in the Thursday T session

• Dec-20 traded 10kt @ $37.75

• Jan-21 traded 15kt @ $42.00

• Jan-21 traded 20kt @ $41.80

• Jan-21 traded 20kt @ $41.75

• Jan-21 traded 40kt @ $41.50

• Mar-21 traded 10kt @ $40.10

• Feb-21 traded 10kt @ $41.50 (Feb-21/Mar-21 spread @ $1.25)

• Mar-21 traded 10kt @ $40.25 (Feb-21/Mar-21 spread @ $1.25)

• Feb-21 traded 10kt @ $41.50 (Feb-21/Mar-21 spread @ $1.30)

• Mar-21 traded 10kt @ $40.20 (Feb-21/Mar-21 spread @ $1.30)

• Feb-21 traded 10kt @ $41.00 (Feb-21/Mar-21 spread @ $0.80)

• Mar-21 traded 10kt @ $40.20 (Feb-21/Mar-21 spread @ $0.80)

• Mar-21 traded 15kt @ $40.20 (Mar-21/Apr-21 spread @ $1.00)

• Apr-21 traded 15kt @ $39.20 Mar-21/Apr-21 spread @ $1.00)

• Mar-21 traded 15kt @ $40.10 (Mar-21/Apr-21 spread @ $1.25)

• Apr-21 traded 15kt @ $38.85 (Mar-21/Apr-21 spread @ $1.25)

30kt traded in the Thursday T+1 session

• Jan-21 traded 5kt @ $42.00

• Jan-21 traded 5kt @ $41.80

• Feb-21 traded 5kt @ $41.65

• Feb-21 traded 5kt @ $41.60

• Feb-21 traded 10kt @ $41.50

December month-to date:

Futures Volume 614kt, Open interest at a record 701kt

Total volume since January 2020: 4,293kt

Physical

Suppliers in Indonesia say that inquiries for prompt loading cargoes have been promising but supply tightness is preventing them from taking advantage of sharply higher bids. A miner in South Kalimantan said, "We have heard bids as high as $40.00/t FOB, basis 4,200 kc GAR, for geared vessels. Really strong but we simply do not have the coal." Heavy seasonal rainfall has done little to support stronger production at this time of the year. Chinese buying continues to support Indonesian price, with winter power demand spiking ahead of coal supplies in some regions. For low-rank, a deal for a January loading geared vessel was understood to have been concluded at $40.50/t FOB, basis 3,800 kc NAR.

Paper

M42 trading hit a new daily record - with over a quarter of a million tonnes (265 kt) cleared through SGX. It also signaled a record trading week, on top of what was already a record quarter (1.6 mt). Open Interest also hit a new high at 701,000 t. Total tonnage for the year now stands at 4.3 mt, up 207% on 1.4 mt in 2019. M42 traded at $41.50-42.00 for January. Spreads were heard transacting at M42 plus $0.80 and $1.25 for February vs March. Over the day, M42 was bid for December at $37.10 and offered at $38.25 and January bid at $41.00 and offered at $42.00. February was bid at $39.25 and offered at $42.00, while march was offered at $39.00 and offered at $40.75, and April bid at $38.75 and offered at $40.35. Further out, May was bid at $37.75 and offered at $40.50, while June was mid at $36.75 and offered at $ 40.50.

Source: IHS Markit