Bloomberg News

Indonesian Thermal Coal Swaps Advance; China Contracts Gain

January 18, 2013

Swaps prices rose for thermal coal from Indonesia, the world’s largest exporter of the fuel, according to Ginga Petroleum Singapore Pte.

The swap for Indonesian sub-bituminous coal with a calorific value of 4,900 kilocalories a kilogram in the second quarter advanced 45 cents to $65.25 a metric ton on a net-as- received basis yesterday, Ginga said in an e-mail today. The February contract climbed 25 cents to $64 a ton.

Contracts for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in the second quarter gained 10 cents to $87.10 a ton on a net-as- received basis, the energy broker said. The February contract added 10 cents to $85.90 a ton.

A commodity swap is a financial agreement whereby a floating price is exchanged for a fixed rate over a specified contract period. About 60 percent of Indonesia’s coal is classified as sub-bituminous. Higher moisture levels and a lower carbon content reduce the heating value compared with better- quality stock. Sub-bit coal has fewer than 6,100 kilocalories per kilogram, according to the Indonesian energy ministry.

To contact the reporter on this story: Fitri Wulandari in Jakarta at

To contact the editor responsible for this story: Alexander Kwiatkowski at

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