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Sunday, 04 November 12
SUB-BIT INDONESIA COAL SWAPS FOR DECEMBER' 12 DELIVERY FALLS TO $ 59.78


COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for December 2012 delivery fell -1.02 percent on WoW but gained 0.08 percent on D-D on Friday, 2 November 2012, according to the data released by AsiaClear OTC coal swaps on 2 November 2012.

Sub-Bit FOB Indonesia coal swaps for December’12 delivery opened on 29 October 2012 at US$  60.40 pmt and closed on 2 November 2012 at $ 59.78 lost around $ -1.02 pmt. December 2013 delivery as well as average calendar 2013 deliveries prices also lost US$ -1.25 percent and -1.5 percent respectively per MT for the same period.

Average December 2013 deliveries for Sub-Bit Indonesia coal opened at $ 66.35 pmt on 29 October 2012 and closed $  65.52 on 2 November 2012.

CFR South China coal shipment for average prices for December’12, December’13 and calendar 2013 deliveries also dropped on w-w.

CFR South China coal shipments (delivery December ‘12) was opened at $  84.20 on 26-Oct-12 and closed at $ 83.93 on 2 November 2012 down $ 0.27 per mt. The CFR South China coal swaps for December’13 deliveries also lost -2.21 percent on W-W -0.05 percent on D-D on 2 November 12.

Sub-Bit FOB Indonesia coal contracts for December 2012 delivery closed at US$ 59.78 on 2 November 2012 compared to US$ 60.40 Monday opening, lost US$ 0.62 per MT. In the meantime, CFR South China coal December delivery fell  US$ 0.27 pmt w-w and US$ 0.02 on D-D on 2 November closed at US$  83.93 against US$ 83.95 Thursday closing.

CFR South China coal, average Calendar 13 delivery also moved negative direction this week lost -1.92 percent W-W and -0.14 percent d-d. Sub-Bit FOB Indonesia coal contracts for average cal 13 delivery lost -1.5 percent or US$ 0.96 pmt W-W, and -0.03 percent D-D and closed at US$ 62.93.

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$  5.74 increase for December’13 delivery compared to the same period in 2012. CFR South China coal swap for December’13 delivery was  US$  5.30 higher per mt compared to December’12 delivery price.

Indonesian government has fixed its October HBA at US$ 86.04 for 6322 GAR coal. November HBA is expected to be released any time next week.

The Indonesian government has reduced its DMO requirement, 18 percent due to lower consumption by power plants. Indonesian miners must allocate 67.3 million metric tons of coal under DMO requirement, down from the previous requirement of 82.1 million tons or less 14.8 million tons of coal set in August of last year.

Recently Indonesian government has issued a regulation asking Indo miners, to allocate 74.30 million metric tons of coal under the so-called domestic market obligation (DMO) in 2013.

The 2013,  DMO volume is equivalent to 20.30 percent of the targeted production volume in 2013. The Indonesian government is forecasting the 2013 coal production will be around 337 million tons to 366.04 million tons, based on miners mining plan. Year 2013, DMO requirement is 10.40 percent higher than year 2012 revised DMO tonnage.

Due to higher coal output and less demand, the price recovery will be in slow speed.

However Indonesia Coal Mining Association (APBI) predicts that, coal prices will move towards up starting from the end of 2012 and will reached its peak sometime around second quarter of 2013, a Indonesian local media reported.

Indonesian coal mining association has forecasts, the world coal price has now reached its lowest point and begins to take a “U” turn.

"Next year, during the second quarter, I think the prices will be around US$ 100 per tonne," said Bob, the chairman of ICMA, the media reports says.



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