SGX M42F Thermal Coal - Daily Update 9 October 2020

10kt traded in Friday T session

    Oct-20 traded 5kt @ $27.75

    Nov-20 traded 5kt @ $28.60

October month-to date:

Futures volume at 87kt, Open interest at 420kt

Total volume since January 2020: 2,810kt

 

Physical

Indonesian coal prices sustained another week of growth, with demand firming from India and with positive buying signs out of China during their absence for Golden Week. However, a degree of caution over China's direction in the remainder of the year remains a feature of discussion among Indonesian suppliers. "It's difficult to understand what China's next move might be," one major sub-bituminous miner said. "We don't have many spot cargoes left and don't want to risk defaults." November loading shipments traded at $26.50-27.50/t FOB, basis 3,800 kc NAR, for geared vessels, while a Panamax of similar material transacted at $28.75/t FOB, same basis. On an index-linked basis, multiple offers were heard for November and December loading geared material at M42 flat to minus $0.10/t, basis 3,800 kc NAR.

 

Paper

Asian futures trading was active over the week with M42 deals transacting via SGX at $28.15-28.60/t for November, up from $27.65-27.95/t last week. Meanwhile, October M42 traded at $27.75/t a couple of times, sharply rising from traded levels of $26.15-26.35/t, a week ago.

 

Source: IHS Markit