SGX M42F Thermal Coal - Daily Update 23 October 2020

85kt traded in the Friday T session

    Nov-20 traded 35kt @ $29.55

    Nov-20 traded 25kt @ $29.55 (Nov-20/Dec-20 spread @ $1.20)

    Dec-20 traded 25kt @ $30.75 (Nov-20/Dec-20 spread @ $1.20)

October month-to date:

Futures Volume at a record 563kt, record daily Open interest at 590kt

Total volume since January 2020: 3,286kt

 

Physical

Buying momentum began to slow, although prices still firmed week on week. However, with China shying away given quota limitations and India in no urgent need for supplies, Indonesian coal prices did not see as much movement on the week as the previous fortnight. With monsoon intensifying, Indonesian miners too are understood to be less interested in offering prompt cargoes. Deals were heard settled at $28.25-29.50/t FOB, basis 3,800 kc NAR, for November loading geared vessels, while similar parcels loading in November-December traded at $29.80/t FOB, same basis. Last week, November loading geared vessels traded at $28.00-29.80/t FOB, basis 3,800 kc NAR, for geared vessels, while a Panamax of similar material transacted at $29.00-29.50/t FOB, same basis.

 

Paper

Asian futures trading was buoyant with 311,000 t of M42 cleared via SGX in a record week. A flurry of deals for November transacted at $29.50-29.80/t over the week, up from transacted levels last week at $28.80-29.75/t, while December M42 traded between $29.55-31.00/t.

 

Source: IHS Markit