Indonesian Coal Swaps Fall for a Fourth day; China Prices Drop
Swaps prices fell for a fourth day for thermal coal from Indonesia, the world’s largest exporter of the fuel, 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 second quarter slid 5 cents yesterday to $64.50 a metric ton on a net- as-received basis, Ginga said in an e-mail today. The February contract was 5 cents lower at $63.60 a ton.
Contracts for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in the second quarter fell 5 cents to $86.30 a ton on a net-as-received basis, the energy broker said. The February contract gained 30 cents to $85.50 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.
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