Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.
The September contract was traded at $122.50 per tonne cfr China and at $118.50 per tonne for the fob Australia basis.
Both were brokered by FIS between Chinese trading house Concord Fortune and an undisclosed counterparty, FIS said.
“We see coking coal swaps as an obvious addition to our business which enables us to ramp up our participation in the steel supply chain,” Raymond Li, director for the derivatives department at Concord Fortune, said in the FIS statement.
No other trades were heard by 7pm Singapore time, Steel First understood. Actual cleared volumes will be released by the SGX tomorrow.
“Many of the market participants looking into [the SGX coking coal contracts] expected more action,” a broker said, adding that today’s activity was a little disappointing.
“We haven’t seen too many enquiries about the SGX contract,” a second broker said. “It may pick up, though.”
However, a third broker believed that as long as there were numbers in the market it meant that there was real interest in trading the product.
Before the launch of the contracts, market interest centred on the cfr China contract because China is the largest spot buyer.
Two coking coal swaps trades were heard cleared by the Singapore Exchange (SGX) on Monday August 4, the first working day of the bourse’s clearing service for the steelmaking raw material.