SGX M42F Thermal Coal - Daily Update 27 January 2021

5kt traded in the Tuesday T+1 session

•  Feb-21 traded 5kt @ $44.40

30kt traded in the Wednesday T session

•  Mar-21 traded 10kt @ $42.25

•  Mar-21 traded 10kt @ $42.10

•  Mar-21 traded 10kt @ $42.00

 

January month-to date:

Futures Volume at a record of 1,204kt, Open interest at 987kt

 

Total volume since January 2021: 1,204kt

 

Physical

The monsoon rains remain a challenge to mining and logistics activity with several sources saying they were experiencing loading delays. However, several thermal suppliers in Indonesia felt a marked softening in prices as demand began to soften. Downwards pressure was still being asserted against Indonesian prices, as the supply shortages in China begin to subside. There was talk of deal being done at around $46.00/t FOB, basis 3,800 kc NAR, for a late February loading geared vessel, although this could not be confirmed at the time of writing. Offers were reported at $47.00-48.00/t FOB, and $49.00/t FOB, basis 3,800 kc NAR, for February loading geared vessels and Panamaxes, respectively. For March loading, a geared vessel was heard offered at $46.25/t FOB, basis 3,800 kc NAR.

 

Paper

M42 traded at $42.00-42.25 for March, which was up on where it last traded the previous day at $41.25. Through the day, January was heard bid at $46.00 and offered at $48.50, while February was bid at $44.50 and offered at $45.00. March was bid at $41.50 and offered at $44.00, with April bid at $38.75 and offered at $39.75. A spread for February vs March was bid at M42 plus $2.75 and offered at plus $3.60 and March vs April was bid at plus $2.50 and offered at plus $3.50.

 

Source: IHS Markit.