Flurry of coking coal swaps trades as new counter parties enter, SSY says

Brokerage house SSY did seven coking coal swaps trades in Asian trading hours on Monday July 14.

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The August contract traded outright at $112, $113 and $113.75 per tonne, the 2015 year traded at $124 per tonne, and 2016 contracts traded at $136, $138 and $139 per tonne.

The contracts were settling against the Platts premium low-volatility fob Australia assessment and were cleared through the Chicago Mercantile Exchange.

SSY set up its coking coal desk earlier this month as it looked forward to the Singapore Exchange (SGX)’s launch of coking coal derivatives clearing in July.

The launch date, however, has been pushed back to August, market participants told Steel First.

SGX could not be reached for comment at the time of publication.

“As we expected, there is good support for the service and we are hearing from a number of newcomers to the market, as well as getting support from existing customers from other related markets,” Jamie Pearce, head of SSY Futures Singapore, said.

“SSY occupies a strong position in freight and iron ore, where we account for about 30% of derivatives turnover annually. We aim to replicate this in steel and coking coal,” a statement said.