SGX M42F Thermal Coal - Daily Update 18 December 2020
Monday, December 21 2020 - 10:08 PM WIB
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
86kt traded in the Friday T session
▪ Feb-21 traded 6kt @ $42.00
▪ Feb-21 traded 10kt @ $41.80
▪ Mar-21 traded 10kt @ $40.10
▪ Feb-21 traded 5kt @ $41.80 (Feb-21/Mar-21 spread @ $1.70)
▪ Mar-21 traded 5kt @ $40.10 (Feb-21/Mar-21 spread @ $1.70)
▪ Feb-21 traded 5kt @ $41.50 (Feb-21/Mar-21 spread @ $1.20)
▪ Mar-21 traded 5kt @ $40.30 (Feb-21/Mar-21 spread @ $1.20)
▪ Mar-21 traded 20kt $40.10 (Mar-21/Apr-21 spread @ $1.15)
▪ Apr-21 traded 20kt @ $38.95 (Mar-21/Apr-21 spread @ $1.15)
December month-to date:
Futures Volume 700kt, Open interest at a record 777kt
Total volume since January 2020: 4,379kt
Physical
Robust demand from both the export and domestic market in Indonesia supported a spike in coal prices on the week, keeping up a month's-long momentum of positive sentiment. A coal shortage, and the threat to power supply in China, has forced end-users to secure what they can amid sharply rising prices. But even as Chinese and Indian buyers were heard aggressively bidding for low-rank material, many Indonesian miners admitted that cargoes were few and far between. Torrential monsoon rain has prevented them from ramping up output to meet prompt demand. Low-rank material traded at a range of $40.50-45.00/t FOB, basis 3,800 kc NAR, for January loading geared vessels, up sharply on the week from $37.50/t FOB, same basis. Markets for standard spec material loading in February were bid at $35.00-36.25/t, basis 3,800 kc NAR, against offers at $40.30-42.00/t FOB, same basis. March loading material was heard bid at $36.00/t FOB, basis 3,800 kc NAR, for a geared vessel, while a Panamax of low-sulphur coal was offered at $44.50/t FOB, basis 4,200 kc GAR, also for the same month. On an index-linked basis, offers were seen at M42 plus $0.00-0.50/t, basis 3,800 kc NAR, for geared vessels loading in February, while a March loading geared vessel was offered M42 flat, same basis.
Paper
It was a record week for M42 paper volumes, with a flood of deals being cleared via SGX. Over 0.5 mt of trades, spanning December-April, went through via SGX over the week. Deals for December settled at $36.75-37.50/t, while January trades transacted at $41.00-42.00/t. Last week, January deals went through at $35.90-38.00/t, marking a sharp rise. February traded at $41.00-41.80/t, up significantly week on week from $38.50/t. Deals for March were done at $39.75-40.50/t, also up on the week from $38.50-39.50/t. Further out, April traded at $38.65-39.20/t.
Source: IHS Markit