ICI 4 coal derivatives trade out until the end of 2019

ICI 4 coal derivatives traded out to the fourth quarter of this year today amid further signs that the physical Indonesian market was strengthening.

Of today's trades, 10,000 t/month each for October, November and December were cleared on the CME at $33.15/t and all brokered by Singapore-based Evolution. Today's trades mean that a total of 255,000t of ICI 4 futures have traded so far this month.

In terms of bids and offers, September contracts were bid today at $32.10/t and offered at $32.40/t, while October was bid at $32.50/t and offered at $32.85/t. November ICI 4 futures were bid today at $32.75/t and offered at $33.40/t, while fourth-quarter 2019 contracts were bid at $32.75/t and offered at $33.50/t.

By comparison, the last Argus settlement price for October ICI 4 contracts was at $32.55/t yesterday, when November was at $32.95/t and fourth-quarter 2019 was at $33.15/t.

There were further signs that the low-calorific value (CV) Indonesian market was strengthening today after details of GAR 4,200 kcal/kg deals began to emerge at higher prices compared with similar transactions last week.

Two October-loading geared Supramax GAR 4,200 kcal/kg cargoes may have traded today at $32.75/t. Several October-loading GAR 4,200 kcal/kg geared Supramax shipments changed hands last week at $32/t.

In the fob Newcastle Australian thermal coal market, several offers for NAR 6,000 kcal/kg coal were heard at around $63/t fob for November-loading Panamaxes. One cargo was offered on screen for $63/t fob and another over the counter for $62.75/t fob.

The contract traded most recently at $63/t fob Newcastle yesterday on screen, up from last week's assessment of $62.08/t fob.

The NAR 5,500 kcal/kg market, by contrast, was quiet.

In China's domestic market, prices have remained relatively steady so far this month, with offers of NAR 5,500 kcal/kg coal at 580-585 yuan/t ($81.80-82.50/t) fob north China ports and offers of the coal at Yn585-588/t.

In China's futures market, the November contract on the ZCE closed at Yn587.40/t, up by Yn1.40/t from yesterday.