FIS LONDON COKING COAL MARKET REPORT 25/03/21

FIS LONDON COKING COAL MARKET REPORT

DCE Level

May:  1543.5  unch

Coking Coal Index

TSI FOB PHCC up 1.3 at 111.80; mtd 118.14

Indicative Curve

BID     OFFER   VALUE

MAR      115.75   117.75   116.75

APR       113.50   115.50   114.50

MAY      116.50   118.50   117.50

JUN       122.50   124.50   123.50

Q2-21    117.50   119.50   118.50

Q3-21    131.00   133.00   132.00

Q4-21    143.50   145.50   144.50

Q1-22    148.50   150.50   149.50

Q2-22    149.50   151.50   150.50

CAL-22  148.50   152.50   150.50

CAL-23  151.00   155.00   153.00

Trades

Q3 at 132 in 3kT/mth
Q3 at 132 in 2kT/mth
Q3 at 132 in 2kT/mth
Q4/Q1 at -4.50 in 2kT/mth
Cal 22 at 150.50 in 1kT/mth

The futures caught a bid today as a number of physical deals in the market reported overnight (as mentioned in yesterday’s report) gave the impression for now at least that the market is bottoming out.  Unfortunately sellers didn’t engage at the front and so trades were focussed on Q3 onwards where sell side hedging materialised late in the day.  Q3 trading in decent size at 132.  Long term this is a low number for coking coal but it is still a $20 premium over spot prices and $8-9 above June.  Q4 didn’t close and got to 142 / 145.  Further out Cal 22 traded at 150.50 and Q4/Q1 narrowed to trade at -4.50.