ICI 4 coal derivatives prices edge lower

: Coal
19/07/30

A total of 10,000t of ICI 4 coal derivatives was cleared on the CME today at lower prices compared with the last Argus settlement.

A 5,000t August and a 5,000t September contract traded at the same time in a package trade today at $33.95/t each, brokered by Singapore-based Evolution. This was down slightly compared with the Argus-assessed settlement prices for these months yesterday, when August and September both finished at $34/t.

August and September contracts were bid at $33.65/t and offered at $34/t today.

A total of 25,000t of ICI 4 derivatives has traded so far this week, taking the total so far in July to 529,000t.

Trade in the physical market was slow, although there are signs the market could be beginning to stabilize with traders reporting a slight uptick in enquiries from Indian buyers. This did not lead to actual bids but is supporting a view among some sellers that Indian importers could soon start to seek cargoes for arrival after the monsoon season ends. In previous years, Indian buying interest has started to pick up from around August as importers seek cargoes for arrival at Indian ports from about September, after the monsoon season ends.

Bids and offers for August-loading geared Supramax cargoes were steady today, with most bids at around $32.50/t and offers around $33.50-34/t. A mid-August loading Supramax cargo of this coal traded at $33.60/t, which was broadly in line with comparable trades that were concluded late last week.

Prices in the high calorific value Australian market continued to slide on oversupply.

A 75,000t September-loading cargo of NAR 6,000 kcal/kg coal traded at $65/t fob Newcastle on screen, having previously been offered at $66.50/t. That is down significantly from last week's assessed price of $70.12/t on 26 July.

In the NAR 5,500 kcal/kg market, Capesize cargoes loading in September were offered at $52/t fob Newcastle but most buyers are hoping for prices to decline further to around $48-50/t. Fob prices of this coal were last assessed at $50.85/t fob Newcastle on 26 July.

In China's domestic market, spot thermal coal prices retreated slightly amid falling consumption at major coastal power plants.

A Capesize NAR 5,500 kcal/kg cargo from Australia arrived at eastern China's Lianyun port this week. The cargo is expected to be available for sale in around two months.

Thermal coal futures lost more ground as more imported cargoes were offered in the market.

The actively-traded September thermal coal futures contract on China's ZCE closed at 587.4 yuan/t today, down by Yn4/t from yesterday. Open interest in the contract declined by 3,632 lots to 235,550 lots, indicating a potential physical delivery volume of around 11.78mn t for September.

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24/11/22

Opinion: Bridging the divide

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Japan’s Taketoyo to resume biomass co-firing in 2027

24/11/22

Japan’s Taketoyo to resume biomass co-firing in 2027

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Cost of government support for fossil fuels still high

24/11/21

Cost of government support for fossil fuels still high

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Cop: Australia backs no new coal power call: Correction

24/11/20

Cop: Australia backs no new coal power call: Correction

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Indonesia advances coal-fired power phase-out to 2040

24/11/20

Indonesia advances coal-fired power phase-out to 2040

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