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Sunday, 16 September 12
GLOBAL LOW DEMAND ; INDONESIA COAL AND CFR SOUTH CHINA COAL SWAPS DIP


COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for November 2012 delivery lost 1.345 percent W-O-W on Friday, 14 September 2012, closing but gained 0.0321 percent on D-O-D, according to the data released by AsiaClear OTC coal swaps on 14th September 2012.

Sub-Bit FOB Indonesia coal swaps for November delivery opened on Monday, 10 September 2012 at US$ 63.17 pmt and closed on Friday (14 September 2012) at $  62.32 lost around $ 0.85 pmt. Q2 2013 & Cal 2013  deliveries also lost US$ 0.95  per MT $  0.83 respectively for the same period.

Average Cal 2013 deliveries for  Sub-Bit Indonesia coal opened at $ 68.50 pmt on 14 September 2012 and closed $ 67.67 on 14th September 2012.

CFR South China coal shipments for November 12, November 13, Q2’13 and Cal 2013 deliveries dropped on W-O-W.


On 10 September CFR South China coal shipments (delivery November 2012) was opened at $  83.55 and closed on 14 September at $ 83.20 lost $ 0.35 pmt. The CFR South China coal swaps for November deliveries lost 0.418 % and 0.120% on W-O-W and  D-O-D respectively o 14th September.

Sub-Bit FOB Indonesia coal contracts for November 2012 delivery closed at US$ 62.32 on Friday (14 September 2012) compared to US$ 63.17 Monday opening, lost US$ 0.85 per MT. CFR South China coal November delivery also lost US$ 0.35 pmt W-o-W on Friday (14 September) closed at US$ 83.20 against US$ 83.55 Monday Opening.

CFR South China coal, Nov-13 delivery lost 0.601 percent W-o-W and lost 0.055 percent D-O-D. Sub-Bit FOB Indonesia coal contracts for Nov13 delivery lost 1.127 percent or US$ 0.80 pmt W-o-W and gained 0.214 percent D-O-D and closed at US$  70.15.

CFR South China delivery (Q2’13) has closed US$ at $  87.35 on 14 September compared to US$ 87.95 opening on Monday (10 September 2012).

A commodity swap is a financial agreement whereby a floating, or spot, price is exchanged for a fixed rate over a specified contract period. (Last updated on 17 Septmber 2012)

Sub-Bit FOB Indonesia coal contracts and CFR South China coal for Cal 2013 deliveries closed at $ 67.67 pmt $ 88.23 pmt respectively on Friday. Average November 2013 delivery prices for Sub-Bit FOB Indonesia coal and CFR South China coal were $ 7.83 and $ 7.65 higher compared to November 12 deliveries.


Average cal 2013 delivery price for Sub-Bit FOB Indonesia coal was US$ 2.48 lower than November 2012 delivery price. Average Cal 2013 delivery price for CFR South China coal contract price is US$ 2.62 lower than November  2012 delivery price.

According to paper reports in Indonesia, Deputy Energy and Mineral Resources Minister was concerned about current falling coal prices and according to him,  the continued fall in coal prices would severely hurt the country’s coal mining companies. Hence, “the government is ready to help by giving tax holidays or other fiscal measures, if the price of coal  hit below US$ 60.

According coal analysts, over supply of coal is one of the main reason for the current low prices. Unless mining companies reduce their coal production to counter the low demand, the price recovery will take more time than expected.

However, some of the Indonesia’s major coal producers have already revised their annual target due to the declining coal prices. Indonesia’s single largest coal producer Adaro Energy, has revised its 2012 production forecasts to 48 million and 50 million metric tons, Berau Coal has lower its production forecast to 20 million to 22 million tons. The largest Indonesian coal miner BUMI also planning to reduce its production forecast in 2012.

Few small scale coal miners, specially low calorific value coal producers in Indonesia have already suspended their productions and some miners have cut down their production at least by 50 percent within last three months. Indonesian government declared minimum selling price has gained 1.84 percent in September on MoM.



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