SGX M42F Thermal Coal - Daily Update 5 October 2020

10kt traded in Monday T session

• Nov-20 traded 5kt @ $28.30

• Nov-20 traded 5kt @ $28.15

 

October month-to date:

Futures volume at 52kt, Open interest at 395kt

 

Total volume since January 2020: 2,775kt

 

Physical

Wet weather has begun to intensify in parts of Kalimantan. Some coal suppliers believe this will challenge production and may set the momentum for some support for Indonesian coal prices in the last few months of 2020. However, there are others who are cautious as to how developments will play out in China. "There are rumours that there is demand for winter restocking but whether there will be quota to accommodate this is another thing," a Jakarta-based trader said, adding, "I am not seeing any genuine, firm demand or bookings for October/November." Low-rank was heard bid at $25.50/t FOB, basis 3,800 kc NAR, for a Supramax loading in November, with an offer against at $29.00/t FOB, same basis. A market for a December loading Supramax was also heard bid at $26.25/t FOB, basis 3,800 kc NAR, with an offer at $29.25/t FOB, same basis. On an index-linked basis, an offer was heard at flat to the M42 index for November or December loading Supramaxes of 3,800 kc NAR material.

 

Paper

M42 traded via SGX at $28.15 and $28.30 for November, up on last week's last November deal of $27.95. Earlier in the Day October was bid at $26.25 and offered at $27.00, while November was bid at $27.75 and offered at $28.15. December was bid at $27.60 and offered at $29.10.

 

Source: IHS Markit