SGX M42F Thermal Coal - Daily Update 8 September 2020

September month-to date:

Futures volume at 50kt, Open interest at 421kt

 

Total volume since January 2020: 2,429kt

 

Physical

Interest from India and South East Asia brought slight support to price levels, however, Indonesian miners commented that bids were much below acceptable levels. Bidding interest remained low for Indonesian low-rank material, understood to be around $21.25-21.50/t FOB, basis 3,800 kc NAR, for a second half of September loading geared vessel, while offers for such shipments remained flat to the average of M42 and ICI4, same basis. However, a buyer commented the offer level for September loading cargoes slightly firmed with availability tightening coming closer to the laycan. A September and October cross laycan geared vessel loading out of East Kalimantan was bid at $21.25/t FOB, basis 3,800 kc NAR.

 

Paper

M42, listed on SGX, was bid for September at $22.50 and offered at $23.45, while October was bid at $23.90 and offered at $24.50, and November was bid at $25.00 and offered at $25.60. Q4-20 was bid at $24.65 and offered at $25.65, with Q1-21 bid at $26.25 and offered at $28.65. Cal-21 was bid at $26.05 and offered at $31.65. A spread for September vs October was bid at M42 minus $1.80 and offered at minus $0.50, with October vs November bid at minus $1.35 and offered at minus $0.70 and November vs December was bid at minus $1.25 and offered at minus $0.75.

Source: IHS Markit.