Swaps prices rose a third day for thermal coal from Indonesia, the world’s largest exporter of the fuel for generating electricity, 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 gained 20 cents to $63.20 a metric ton on a net-as-received basis yesterday, Ginga said in an e-mail today. The January contract climbed 20 cents to $63.20 a ton.
Contracts for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in the first quarter held at $84 a ton on a net-as-received basis, the energy broker said. The swap for January was unchanged at $83.65.
Price of thermal coal at Australia’s Newcastle port, the benchmark for Asian contract, declined 35 cents to $90.30 a ton in the week ended Dec. 14, according to IHS McCloskey, a Petersfield, U.K.-based provider of coal data. It was the first weekly drop in eight weeks.
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.