SGX M42F Thermal Coal - Daily Update 4 February 2020

15kt traded in Tuesday T Session

• Feb-20 traded 10kt @ $36.25

• Feb-20 traded 5kt @ $36

20kt traded in Tuesday T+1 Session

• Feb-20 traded 10kt @ $36.25

• Feb-20 traded 10kt @ $35.75

 

February month-to date:

Futures volume at 80kt, Open interest at 245kt

 

Total volume since January 2020: 192kt

 

Physical

Prices were firming, with most of the focus for Indonesian cargoes remaining on the low-rank market. A market for a March loading geared vessel was heard bid at $35.50/t FOB basis 3,800 kc NAR, and offered at $37.00/t FOB, same basis. On an index-linked basis, there was a trade at $0.25/t above the average of the M42 and ICI4 indices for a March loading geared vessel of 4,200 kc GAR material. An offer for a similar cargo was heard at the average of M42/ICI4 plus $0.50/t, also for March. An indicative offer was also heard for a slightly off-spec cargo at $36.25/t FOB basis 4,300 kc GAR, for a March loading geared vessel.

 

Paper

M42 paper, listed on SGX, traded for February at $35.75, $36.00 and $36.25 for a total of 35,000 t, all of which were above the previous day's highest deal done at $35.50. This is at the top end, and above, last week's traded level of $34.80-35.25 for February. Earlier in the day, February was bid at $35.50 and offered at $36.00. Further out, March was bid at $35.20 and offered at $35.90, while April was bid at $34.45 and offered at $36.10. February 2020 has now become the most traded product since M42 launched in April 2018 with 269,000 t being cleared.

 

Source: IHS McCloskey.