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Sunday, 14 October 12
SUB-BIT INDONESIA COAL AND CFR SOUTH CHINA COAL SWAPS: SOFT


COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for December 2012 delivery lost 0.329 percent w- w but gained 0.248 percent d-d on Friday, 12 October 2012, according to the data released by AsiaClear OTC coal swaps on 12 October 2012.

Sub-Bit FOB Indonesia coal swaps for December’12 delivery opened on 8 October 2012 at US$ 60.73 pmt and closed on 12 October 2012 at $  60.53 lost around $ 0.20 pmt. December 2013 deliveries prices also lost US$ 0.77 per MT for the same period.

Average December 2013 deliveries for  Sub-Bit Indonesia coal opened at $ 68.27 pmt on 8 October 2012 and closed $ 67.50 on 12 October 2012.

CFR South China coal shipments for December’12 and December’13 deliveries also dropped on w-w as well as d-d.

On 8 October CFR South China coal shipments (delivery December ‘12) was opened at $ 83.50 and closed at $ 83.20 on 12 October down $ 0.30 per mt. In the meantime, the CFR South China coal swaps for December’13 deliveries lost -0.985 percent and -0.418 percent on w-w and d-d respectively on 12 October 12.

Sub-Bit FOB Indonesia coal contracts for December 2012 delivery closed at US$ 60.53 on 12 October 2012 compared to US$ 60.73 Monday opening, lost US$ 0.20 per MT. In the meantime, CFR South China coal December delivery fell  US$ 0.30 pmt w-w and d-o-d on 12 October closed at US$ 83.20 against US$ 83.50 Thursday closing.

CFR South China coal, average Calendar 13 delivery also moved negative direction this week lost -0.723 percent W-W and -0.204 percent d-d. Sub-Bit FOB Indonesia coal contracts for average cal 13 delivery lost -1.068 percent or US$ 0.70 pmt W-W, and lost -0.092 percent D-D and closed at US$  64.81.

A commodity swap is a financial agreement whereby a floating, or spot, price is exchanged for a fixed rate over a specified contract period.

However, AsiaClear OTC Sub-Bit Indonesia coal swap was showing a US$ 6.97 increase for December’13 delivery compared to the same period in 2012. CFR South China coal swap for December’13 delivery was  US$ 7.20 higher per mt compared to December’12 delivery price.

“There will be a positive corrections in coming months, once the major coal importers start their annual coal contract negotiation with producing countries”, said a coal trader. At the same time, an end-user from India said, the prices will not move significantly at least until second half of next year.

Indonesian as well as Australian producers announced that, they are reducing their forecasts on coal production in 2013 as well as suspending their expansion plan to counter the current low coal price. Indonesian small scale and high production cost miners have already suspend their coal production due current lower coal prices. However those production cuts have not contributed lots to recover coal prices or reduce excess supplies in the market. The coal supply is still higher than demand, which is still playing a major role in movement of coal prices.

Recently, an Indian based paper producer, has awarded a 300,000 MT of imported coal contract to a Singapore based coal trader at US$ 77.60 / MT CNF Tuticorin to supply 6000 GAD calorific value coal with 15% total moisture coal. The delivery is expected to starts  from November 2012 until March 2013.

Indonesian government has fixed its October HBA at US$ 86.04 for 6322 GAR coal.



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