Indonesian Power-Station Coal Swaps Decline; China Prices Fall
Swaps prices fell for thermal coal 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 dropped 30 cents to $63.70 a metric ton on a net-as-received basis yesterday, Ginga said in an e-mail today. The January contract declined 30 cents to $63.25.
Contracts for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in the first quarter fell 15 cents to $85.15 a ton on a net-as-received basis, the energy broker said. The January contract was 15 cents lower at $84.75 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 email@example.com