Bloomberg News

Indonesian Coal Swaps Rise a Second Day; China Prices Decline

February 03, 2013

Swaps prices gained a second day for thermal coal for loading next quarter from Indonesia, the world’s largest exporter of the fuel, according to Ginga Petroleum Singapore Pte.

The contract for Indonesian sub-bituminous coal with a calorific value of 4,900 kilocalories a kilogram in the second quarter of this year gained 5 cents to $66.15 a metric ton on a net-as-received basis on Feb. 1, Ginga said in an e-mail today. The March swap rose 5 cents to $65 a ton.

Contracts for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in the second quarter declined 75 cents to $87.10 a ton on a net-as- received basis, the energy broker said. The March contract fell 15 cents to $85.75 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 fwulandari@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net


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