Corrects price in final paragraph
A 5,000t July clip of ICI 4 thermal coal derivatives traded today at a lower price than similar recent transactions, while trade in the Indonesian physical market remained sluggish.
Today's July ICI 4 contract traded at $35.85/t, brokered by Singapore-based GFI. The price at which today's trade was cleared on the CME was down from similar transactions earlier this week, when a total of 35,000t of July contracts traded in five clips at $36-36.10/t.
Bids and offers were little changed from those earlier in the week, with July contracts bid today at $35.50/t and offered at $36-36.15/t with different Singapore-based brokers. August contracts were bid at $35/t today and offered at $36/t, while September was bid at $34.85/t and offered at $36.15/t. Third-quarter 2019 contracts were bid at $35.25/t and offered at $35.90/t.
Today's trade means 170,000t of ICI 4 derivatives have been cleared on the CME so far this month, pushing the total volume to have cleared on CME since its launch last year to 3.85mn t.
Trade in the low-calorific value Indonesian physical coal market was also muted, amid weaker demand from main buyers China and India, as well as ample supplies. Bids and offers for GAR 4,200 kcl/kg coal were broadly unchanged compared with those earlier in the week.
July-loading supramax cargoes of GAR 4,200 kcal/kg coal were mostly bid today at around $35-36/t, with offers in a $36-36.50/t range.
No index relevant deals, bids or offers were confirmed in the Australian thermal coal market today.
The market saw a screen trade for a September-loading 25,000t cargo of NAR 6,000 kcal/kg coal at $70/t fob Newcastle, but the volume and loading period do not fit the Argus index. This was down from the most recent trades with the same specifications at $72-77.50/t fob Newcastle during 11-13 June.
An August-loading 25,000t clip of the NAR 6,000 kcal/kg coal was offered at $67.80/t fob Newcastle on screen.
The NAR 5,500 kcal/kg market saw a 25,000t August-loading clip bid at $53/t fob Newcastle, also on screen.
China's domestic market saw offers of NAR 5,500 kcal/kg coal around 600-605 yuan/t fob north China ports today. Utilities bid the coal at Yn595-600/t.
China's futures market had the Zhengzhou commodities exchange September contract close at Yn596.80/t, up by Yn1.20/t from yesterday.
