ICI 4 coal derivatives trade at higher price

A 15,000t June clip of ICI 4 thermal coal derivatives traded today at a higher price than similar recent transactions, while offers in the low calorific value (CV) physical market also edged up amid weather-related supply disruptions in Kalimantan.

Today's June ICI 4 contract traded at $36.45/t, brokered by Singapore-based Evolution. The price at which today's trade was cleared on the CME was up from similar transactions on 10 June, when a total of 25,000t of June contracts traded in three clips at $35.80/t.

Bids and offers were little changed, with July contracts bid today at $35.80/t, up slightly from $35.50-35.75/t yesterday. July was offered today at $36.20/t, down from $36.75/t yesterday. August was offered today at $36.25/t but there were no corresponding bids.

Today's trade means 85,000t of ICI 4 derivatives have been cleared on the CME so far this month.

Trade in the physical market was muted, although there are signs that fob Indonesia GAR 4,200 kcal/kg prices could be beginning to stabilise following the recent decline. A July-loading geared Supramax cargo was being offered at $36/t, up from offers yesterday in a $35.25-35.50/t range. Producers may try to raise offer prices amid continuing weather-related disruptions to mining and logistics operations in Kalimantan, which have already prompted at least two mining companies to declare force majeure on shipments. But despite this, bids were steady today in a $34-35.50/t range.

Elsewhere in the Indonesian market, a July-loading Panamax GAR 5,000 kcal/kg cargo was bid at $45.50/t and offered at $47/t. By comparison, two July-loading Panamax GAR 5,000 kcal/kg cargoes traded last week at $48.50-49.50/t. Argus last assessed the price of this coal on 7 June at $49.57/t, down by $1.73/t from the previous week.

The Australian market was also quiet today. NAR 6,000 kcal/kg coal was bid at $72/t fob Newcastle on screen for a September-loading 25,000t cargo, and offered at $71/t fob Newcastle for an August-loading 25,000t cargo.

That was down from the level of the most recent deal for a September-loading 25,000t clip at $77.50/t fob Newcastle on 11 June. But Argus does not take these small cargoes into account in its index, and is not yet assessing September-loading trades. No deals were confirmed today.

In China's domestic spot market, offers of domestic NAR 5,500kcal/kg coal were at 596-600 yuan/t fob north China ports today, steady from late last week. Bids for this coal were at Yn590-595/t fob.

In China's futures market, the September contract on the ZCE closed at Yn589.2/t today, down by Yn4.4/t from yesterday.