Indonesian Sub-Bituminous Coal Swaps Rise, China Prices Decline

Swap contracts for Indonesian lower-quality coal rose for a second day, Ginga Petroleum Singapore Pte said. Prices for China shipments fell.

The contract for sub-bituminous coal with a calorific value of 4,900 kilocalories a kilogram for loading from Indonesia in the fourth quarter gained 15 cents to $63.60 a metric ton on a net-as-received basis yesterday, the energy broker said in an e- mail today. The August contract was unchanged at $61.75 a metric ton on a net-as-received basis.

The swap for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in August dropped 75 cents to $82.50 a ton on a net-as-received basis. The contract for the fourth quarter fell 50 cents to $84.50 a ton, Ginga said.

A commodity swap is a financial agreement whereby a floating price is exchanged for a fixed rate over a specified contract period.

Thermal coal at the Australian port of Newcastle, the benchmark for Asian contracts, declined $2.80 to $85.25 a metric ton in the week ended July 13, according to IHS McCloskey, a Petersfield, U.K.-based provider of coal data. It dropped for the first time in three weeks.

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 grades with a better quality stock. Sub-bit coal has kilocalories of less than 6,100 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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.