SGX M42F Thermal Coal - Daily Update 28 August 2020

25kt traded in Friday T session:

    Sep-20 traded 25kt @ $23

August month-to date:

Futures volume at 224kt, Open interest at 356kt

Total volume since January 2020: 2,364kt

 

Physical

Indonesian market participants said demand was sorely lacking over the week, with very few spot transactions concluded. There was a sense of desperation felt by several traders and miners over further falling prices as they struggled to find any upside in the market. "Even the domestic demand has disappeared," a source from a Sumatran miner said. Deals for low-rank material were heard settled at $22.25-23.25/t FOB, basis 3,800 kc NAR, for September loading geared vessels. Markets for October were bid at $22.00-23.25/t FOB, basis 3,800 kc NAR, for geared vessels, against offers at $24.75-25.25/t FOB, same basis, lower than levels seen last week.

 

Paper

M42 traded for September via SGX at $23.00-23.25/t over the week, easing from $23.75/t the previous week. Fair value for Q4 averaged $25.15/t this week, down from traded levels of $25.70/t, in the week prior.

 

Source: IHS Markit