SGX M42F Thermal Coal - Daily Update 4 September 2020

5kt traded in Friday T session:

▪ Oct-20 traded 5kt @ $23.90

 

September month-to date:

Futures volume at 40kt, Open interest at 411kt

 

Total volume since January 2020: 2,419kt

 

Physical

Indonesian coal traded at lower prices on the week, reflective of persistently weak demand in a still oversupplied market. Heavy rain and rough seas have affected transshipment and mining activity by producers loading out of Bunati Port for more than a week. But this slight tightness in supply has done little to lift low-rank coal prices. Trades for October were heard settled at $22.00-23.10/t FOB, basis 4,200 kc GAR, for geared vessels. Last week, markets for the month were bid at $22.00-23.25/t FOB, basis 3,800 kc NAR, also for geared vessels. Markets for November-loading material were wide, bid at $22.00/t FOB, basis 3,800 kc NAR, for a geared vessel, against an offer at $25.00/t FOB, same basis.

 

Paper

Trading activity for M42 received a boost for the October contract over the week. Deals for the month were concluded via SGX at $24.15-24.30/t multiple times before easing to $23.90/t by the week's close. Last week, fair value for October was $24.00.

 

Source: IHS Markit