SGX M42F Thermal Coal - Daily Update 2 October 2020
Monday, October 5 2020 - 05:05 PM WIB
October month-to date:
Futures volume at 42kt, Open interest at 385kt
Total volume since January 2020: 2,765kt
Physical
Coal prices for Indonesian material settled higher on the week, reflecting firmer demand, typical of the last quarter of the year. However, Indonesia producers said that bidding interest remained lower than expected and that there are concerns that the lift in prices will be short-lived. "There are some people who are asking for November loading cargoes but I doubt it is truly for end-user requirements. Likelier that traders are taking positions," one Jakarta-based supplier said. Though traded levels are higher on the week, several Indonesian producers said that they have started slowing down production, concerned that China and India's interest may wane as the COVID-19 pandemic persists. October loading low-rank material traded at $25.60-26.25/t FOB, basis 3,800 kc NAR, for geared vessels, up on where deals settled in the week prior at $25.00/t FOB, same basis. Material loading out of East Kalimantan traded at $27.00/t FOB, basis 3,800 kc NAR, for an October loading geared vessel, while a Panamax of low sulphur coal for November loading transacted at $27.30/t FOB, same basis.
Paper
Momentum continued to build in Asian paper trading over the week, with M42 deals for October settling via SGX at $26.15-26.35/t, compared with $25.40-27.00/t, a week ago. November M42 traded at $27.65-27.95/t, up on the week from $26.40-27.60/t. A deal for December was also concluded at $28.90/t, sharply up from $27.75/t last week.
Source: IHS Markit