ICI 4 coal swaps trading picks up

ICI 4 derivatives trading in the Indonesian thermal coal market picked up today, despite physical trading staying slow in the wake of last week's lunar new year holiday.

A total of 10,000t of ICI 4 derivatives changed hands today, bringing the total volume for February so far to 45,000t. Two 5,000t March clips traded at $34.80/t and $35.50/t today, brokered by Singapore-based GFI. February was bid today at $34.35/t, with March contracts bid at $35.10/t.

By comparison, a 5,000t February ICI 4 clip and a 5,000t March contract changed hands yesterday at $34.50/t and $34.40/t respectively.

In the actively-traded GAR 4,200 kcal/kg (NAR 3,800 kcal/kg) market, a Chinese buyer bid at $36/t for a late-February loading geared supramax, while a trader received a bid for a March loading gearless Panamax at $35.50/t but did not have any cargoes available. That was up from a bid yesterday for a late-February loading geared supramax at $34.50/t.

No trades have been confirmed in the GAR 4,200 kcal/kg market so far this week. A late-February loading geared supramax cargo was bid yesterday at $34.50/t, although offers were scarce.

Elsewhere in the Indonesian market, three trades involving GAR 3,800 kcal/kg (NAR 3,400 kcal/kg) coal totaling 150,000t were done yesterday at $28.50/t.

In the Australian coal market, an April-loading 25,000t parcel of NAR 6,000 kcal/kg coal changed hands at $94/t today, but the deal size was too small for inclusion in the index.

The operator of the Abbot Point coal port in Queensland is now saying it will be able to start loading vessels again by the morning of 15 February. A few coal trains have already started to unload again at the port, which had been closed since 31 January following torrential rain in the region.

In China's domestic spot market, some traders have raised their offers for NAR 5,500 kcal/kg coal to 595 yuan/t fob northern China ports, while others continued offering at Yn590/t. Traders are hoping rainy and snowy weather in much of the country will support coal demand soon, although trades are currently scarce.

In China's futures market, the May contract on the Zhengzhou Commodity Exchange closed at Yn585/t today, up by Yn5.4/t on the day.