Liquidity and open interest on API 4 coal futures surged on 25 February, with daily traded volume on the ICE Exchange 10 times higher than the year-to-date average.
A total of 2.2mn t of API 4 volume transacted on Friday, far above the year-to-date daily average of 211,000t, ICE data show. Volumes fell back to 101,000t on 28 February.
South African NAR 6,000 kcal/kg physical coal prices hit a record high on 25 February, the day after the start of Russia's invasion of Ukraine.
Paper market volatility has shot up following the escalation of the crisis, with daily moves (both up and down) in many API 4 paper contracts in excess of $20/t.
Open interest on API 4 contracts rose by 15pc on 25 February to 5,202 lots, up from 4,508 the previous day.
API 2 liquidity has also jumped in recent sessions, as participants digest the impact of the Russia-Ukraine conflict on global energy fundamentals.
