ICI 4 coal derivatives prices hold steady after holiday

ICI 4 derivatives prices were steady today, with a 15,000t June clip changing hands at $35.80/t, little changed from the price at which similar trades were concluded late last week.

Today's trade was brokered by Singapore-based Evolution. By comparison, a total of 45,000t of June contracts were cleared on the CME last week in a $35.45-35.80/t range.

June ICI 4 derivatives were bid today at $35.40-35.80/t and offered at $36.10-36.25/t with different Singapore-based brokers. June contracts were bid late last week in a $35.45-35.55/t range and offered in a $35.70-35.85/t range. July ICI 4 contracts were bid today at $35-35.40/t and offered at $36.10-36.40/t, while August and first-quarter 2020 contracts were bid at $35.50/t and $36/t respectively, with no corresponding offers for either contract.

Today's trade means the total volume cleared on the CME since the contract launched last year now stands at just under 3.75mn t.

The Indonesian physical coal market made a slow start to the week following a public holiday for the whole of last week. Spot prices of the actively traded GAR 4,200 kcal/kg type of coal were last assessed by Argus on 7 June at $35.80/t, down by $1.40/t compared with a week earlier. Details of bids and offers were slow to emerge today but market participants said prices could come under further pressure this week amid a lack of buying interest from China and India because of high utility stocks in both countries.

Bids for July loading geared Supramax cargoes of GAR 4,200 kcal/kg coal were heard lower at around $34.50/t, with offers at around $35.50-35.75/t, compared with last week when July cargoes were bid at around $35/t against offers at around $36/t.

The Australian thermal coal market was quiet today as some regions of the country, including New South Wales, were closed for a public holiday.

In the China domestic market, bids and offers for NAR 5,500 kcal/kg coal were heard at around 590-600 yuan/t, little changed from last week. Domestic demand remains weak.

In China's futures market, the ZCE September contract closed at Yn587/t today, up by Yn5.2/t from the previous trading day on 6 June. Chinese markets were closed on 7 June for a public holiday.