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Singapore's SGX TSI coking coal derivatives open interest hits all-time high Mar 12

Coal News - Published on Fri, 15 Mar 2019

Image Source: StockMarketClock
S&P Global Platts citing, the Singapore Exchange reported that the SGX TSI FOB Australia Premium Coking Coal derivatives' open interest hit a new daily record high, with the trade of 24,805 lots. Total open interest, futures and options combined, were equivalent to near 2.5 million mt. The last time the market saw a similar level of open interest in the coking coal market was on June 15, 2018. Open interest is the total number of contracts outstanding in derivative markets on an official exchange. The long-term trend of total open interest for SGX TSI coking coal has shown a rise since January 2018.

According to the exchange's data, the average open interest was 18,047 lots for 2018, futures and options combined. The open interest began to increase into 2019, with 24,805 lots settled for March 12, a jump of 24% over that of January 1, 2019.

However, higher open interest represents new money coming into the coking coal market. It could also have been facilitated by increased volatility seen in the physical market. According to S&P Global Platts data, the steel raw materials market saw increased volatility early 2019, with iron ore leading the way due to the Vale incident. The coking coal market's price volatility also increased to 23% in the physical market as of March 12, up 12.5 percentage points from January 1, 2019.

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Posted By : Rabi Wangkhem on Fri, 15 Mar 2019
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