SGX M42F Thermal Coal - Daily Update 6 January 2021

34kt traded in the Wednesday T session

▪ Feb-21 traded 19kt @ $43.75

▪ Feb-21 traded 5kt @ $43.50

▪ Feb-21 traded 5kt @ $43.00

▪ Mar-21 traded 5kt @ $40.00

2kt traded in the Wednesday T+1 session

▪ Jan-21 traded 2kt @ $44.75

January month-to date:

Futures Volume at 147kt, Open interest at 615kt

 

Total volume since January 2021: 147kt

 

Physical

Heavy floods at coal mines in South Kalimantan have disrupted coal shipments, with at least one forced into declaring force majeure to clients, a source who received such a notice by email said. Shipping from South Kalimantan is said to have been delayed by an average 10 to 20 days, under the worse than usual floods in the region. Such conditions are said to be putting increased pressure on supply out of Kalimantan and Sumatra. Low-rank prices were holding up, with an offer reported at $45.00/t FOB basis 3,800 kc NAR, for a January loading geared vessel. For February loading geared vessels, bids were reported at $44.50-45.00/t FOB, basis 3,800 kc NAR. Offers were also heard at around $45.00-45.50/t FOB, basis 3,800 kc NAR, also for a February loading geared vessel. On an index-linked basis, 3,800 kc NAR cargoes in geared vessels were heard bid at M42 minus $0.05/t for February loading, plus $0.75/t for March loading and plus $0.40/t for April.

 

Paper

M42 traded for February at $43.00 and $43.50 and $43.75, which were on either side of the previous day's transaction level of $43.20. Deals were also concluded at $44.75 for January and $40.00 for March. Through the day, M42 was heard bid for January at $44.40 and offered at $45.00, while February was bid at $43.25 and offered at $43.40 and March was bid at $38.00 offered at $42.00. A bid was also reported at $42.25 for Q1-21. A spread for January vs February was bid at M42 plus $1.40, while February vs March M42 was bid at M42 plus $1.40.

Source: IHS Markit