SGX M42F Thermal Coal - Daily Update 24 December 2020

50kt traded in the Thursday T session

• Jan-21 traded 10kt @ $43.00

• Jan-21 traded 20kt @ $42.80 (Jan-21/Feb-21 spread @ $1.95)

• Feb-21 traded 20kt @ $40.85 (Jan-21/Feb-21 spread @ $1.95)

December month-to date:

Futures Volume at a record 898kt, Open interest at 503kt

 

Total volume since January 2020: 4,577kt

 

Physical

Indonesian coal prices firmed further over the week, amid sustained supply tightness. Transshipment activity at Taboneo anchorage in South Kalimantan, in particular, has been impacted by challenging monsoon weather. Prices, however, did not spike as sharply as they did in previous weeks, although demand for China, which remained strong, continued to lend support despite many miners admitting to being sold out. Demand for Indonesian low-rank material continued to firm with trades heard settled at around $45.00/t FOB, basis 3,800 kc NAR, for a January and February loading geared vessels destined for China. On an index-linked basis, a market for February was bid at M42 flat, basis 3,800 kc NAR, against an offer at M42 plus $1.00/t, same basis, for geared vessels. March and April loading geared vessels were bid at M42 flat, basis 3,800 kc NAR, but did not attract any bids. 

 

Paper

Asian swaps trading activity remained upbeat with M42 deals concluded via SGX for January-April though price movements were mixed on the week. Deals for January traded at $42.80-43.60/t, up from $41.00-42.00/t settled last week. February trades were concluded at $40.85/t, easing from $41.00-41.65/t, a week ago. Multiple deals went through for March at a range from $39.15-40.10/t, compared with trades done the previous week at $39.75-40.50/t. Sentiment for April also weakened on the week with a trade settling at $37.70/t versus deals done at $38.65-39.20/t the week before.

 

Source: IHS Markit.