SGX M42F Thermal Coal - Daily Update 21 February 2020
Monday, February 24 2020 - 06:26 PM WIB
February month-to date:
Futures volume at 280kt, Open interest at 402kt
Total volume since January 2020: 392kt
Physical
Indonesian coal prices began to ease on the back of reduced importing appetite from China, where short-covering trading activity in the recent weeks prior has weakened. Several trading sources remarked that a price correction had been expected, with both Chinese and Indian buyers retreating. Low-rank coal traded at $35.50-36.00/t FOB, basis 3,800 kc NAR, for March loading geared vessels. On an index-linked basis, offers for March were heard at M42/ICI4 plus $0.25/t, basis 4,200 kc GAR, for a geared vessel, and at M42/ICI4 plus $1.00/t, same basis, for a Panamax. Markets for April were heard bid at $34.90-35.10/t FOB, basis 3,800 kc NAR, for geared vessels, against numerous offers at $35.85-37.00/t FOB, same basis.
Paper
Swaps trading activity slowed over the week. Fair value for M42, as listed on SGX, averaged $35.15/t for March, down from traded levels last week at $35.50-35.75/t. Fair value for April was $35.00/t, down from transacted levels in the week prior at $35.25-35.45/t. The M42 Q2-contract was valued at $35.00/t, down $0.15/t on the week.
Source: IHS McCloskey.