Thermal Coal Swaps for Indonesia Rise; China Contracts Unchanged

Swaps prices rose for thermal coal for loading next year from Indonesia, the world’s largest exporter of the fuel for power stations, 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 first quarter of 2013 climbed 10 cents to $62.30 a metric ton on a net-as-received basis on Nov. 23, Ginga said in an e-mail today. The December contract held at $61 a ton.

Contracts for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in the first quarter of next year were unchanged at $84 a ton on a net-as- received basis, the energy broker said. The swap for December fell 10 cents at $83.80 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 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 fwulandari@bloomberg.net

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

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