SGX M42F Thermal Coal - Daily Update 23 July 2020

6kt traded in Thursday T Session

    Q4-20 traded 6kt @ $28

July month-to date:

Futures volume at 269kt, Open interest at 402kt

Total volume since January 2020: 2,004kt

 

Asian thermal markets have been quieter this week compared with last week, when there was some optimism that Chinese import quotas might be relaxed soon. Nothing new has emerged as yet however, so bid-offer spreads have widened.

 

Physical

Low-rank material was heard bid at $23.00-24.00/t FOB, basis 3,800 kc NAR, for geared vessels loading in August. Offers for the same laycan were somewhat higher at around $26.00/t FOB, basis 4,200 kc GAR. For September loading, a geared vessel was bid at $24.75/t FOB, basis 3,800 kc NAR, against an offer at $26.25/t FOB, same basis. There was talk of a deal into China for late July loading being done at $24.50/t FOB, basis 3,800 kc NAR, although this could not be confirmed at the time of writing. On an index-linked basis, geared vessels of 3,800 kc NAR material were bid at M42 minus $0.75/t and offered at plus $0.05/t. October loading cargoes were bid at minus $0.60/t and offered at plus $0.10/t, While November loaders were bid at minus $0.45/t and offered at plus $0.15/t.

 

Paper

M42 traded via SGX for Q4-20 at $28.00. Earlier in the day, July was bid at $23.95, against an offer at $25.25. Meanwhile, August was bid at $25.25 and offered at $25.85, with September bid at $25.85 and offered at $26.75, and October was bid at $26.50. Further out, Q4-20 was bid at $27.50 and offered at $28.80, with Q1-21 bid at $28.50. With the latest deals, the total M42 traded volume for 2020 surpassed 2.0 mt, which is 43% higher than the total volume for 2019 when 1.4 mt was cleared.

 

Source: IHS Markit