The Singapore Exchange's coking coal swaps traded volume rise 3% on the month to 1.135 million mt, according to SGX data. SGX coking coal swaps are settled against TSI's Australia Premium Hard Coking Coal FOB index.
Of the total coking coal swaps traded in October, 51% were done on yearly contracts, while 20% and 29% were on monthly and quarterly contracts respectively.
This was a shift compared to September's swaps traded volume, where only 31% were traded on yearly contracts, while 58% were on quarterly contracts and 11% on monthly contracts.
Since August, the daily coking coal traded volume averaged at 55,000 mt, which approximates to a Supramax vessel a day. Year to date coking coal traded volume were recorded at 12.835 million mt.
Open interest were down 5% on month to 1.177 million mt.
SGX continues to dominate the coking coal derivatives market, with almost 100% of the market share since June 2017.
Coking coal swaps were launched on SGX in July 2014 due to growing interest in steel raw materials derivatives. This was followed by the coking coal option contracts launched in September to enhance the suite available to investors.
SGX coking coal swaps contracts are settled against TSI's Australia Premium Hard Coking Coal FOB index, a pricing unit under S&P Global Platts.
