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Sunday, 24 February 13
COAL SWAPS INCH UP WEEK - ON - WEEK


COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for average Q2’ 2013 delivery has gained  0.17 percent and CFR South China coal shipment  0.15 W-O-W as of  Friday, 22 February 2013, according to the data released by AsiaClear OTC coal swaps.

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

Indonesia Sub-Bit FOB Coal Swaps
Sub-Bit Indonesia coal swaps (FOB ) for average Q2’ 2013 delivery has gained  0.17 percent  W-W but lost 0.03 percent on D-D on Friday, 22 February 2013, AsiaClear OTC coal swaps report said on Friday. Sub-Bit FOB Indonesia coal swaps for average Q2’  2013 delivery was opened on 18th  February 2013 at US$ 66.03 pmt and closed at US$ 66.20 on 22 February 2013.

Average Q4’  2013 deliveries for sub-bit Indonesia coal swap was opened at $  67.68 pmt on 18 February  2013 and closed at $ 67.70 on 22 February  2013.  Average Q4’ delivery price has gained US cents 0.02  PMT W-o-W and US$ 0.15 D-o-D.

But, sub-bit Indonesia coal swaps for Cal 2014 delivery lost  W-o-W and D-o-D.

AsiaClear OTC Sub-Bit Indonesia coal swap for average calendar 2014 delivery closed US$ 3.78 (5.70 %) higher compared to average Q2  delivery price of US$ 66.20 on 22 February 2013. In the meantime, the Q4’  2013 coal swap has closed US$  1.50 (2.26 %) higher than Q2 ‘ 2013 swap on 22 February 2013.

CFR South China Coal Swaps
CFR South China coal shipment for average Q2’ 2013 delivery price gained 0.17 per cent  W-O-W.

In the meantime, the average Q4’ 2013 delivery price has also gained  W-W and D-D. The contract for the average Q2’ 2013 prices gained US$ 0.15 W-o-W and closed at US$ 87.20 a ton on 22 February 2013. Average Q4 CFR South China coal shipment prices gained US cents 55 PMT W-W and US cents 12 per MT DoD.

CFR South China coal shipments (average Q2’ 2013 delivery) was opened at $ 87.05 on 18 February 2013  and closed at $ 87.20 on 22 February 2013 gained US$ 0.15 PMT in a week. The CFR South China coal swaps for Q4’ 2013  delivery  also followed Q2 trend gained  0.62 percent W-o-W.

CFR South China coal swap for average Q4’  2013  delivery closed US$ 1.70 higher compared to average Q2’  2013  delivery price. The calendar 2014 coal swap has closed US$ 5.40 higher than average Q2 2013 swap.

Indonesia HBA
Indonesian government has sets its February HBA at US$  88.35 for 6322 GAR coal.

February’ 13 HBA, US$ 0.80 higher compared to January 2013  bench mark price.

According to media reports, Energy and Mineral Resources department of Indonesia expects that,  the Indonesia coal reference price (HBA) will reach over US$100 per ton this year following potential economic recovery as showed by the recent US fiscal-cliff budget deal. Government of Indonesia also planning to increase the production and export in 2013.

India
The import of steam coal to India, particularly the high calorific value power plant coal imports suddenly subject to higher duty after Indian customs officers classifying the higher calorific value coal as "bituminous coal", industry players says.

Indian customs officers recently defined any coal above 5833 on DMMF basis and Volatile matter above 14 percent as "bituminous coal" which is subject to  5% CD and a 6% CVD. Most of the power plant coal importers India, including Indonesian low GCV coal importers are expected to face risk to pay higher duty.

“Such ambiguity can result in Power Generators having to shell out about 10 percent additional duty which in turn would impact the profitability and or tariff setting, said a power producer from southern part of India.

“Indonesia’s “Ultra low GCV coal suppliers future is expected to be bright due to this new move by Indian customs”, said a coal producer from Indonesia.

If the new interpretation is accepted and continued, then India become largest “premium coal” importer in the world soon.

"Consumers are being asked to fork out high CVD not only on their current imports, but authorities are also asking them to pay taxes with retrospective effective i.e. from April 2012 onwards," according to an Indian media.

In the meantime, an another Indian media said in its report that, “the Union budget may announce a clarification on coal imports meant for electricity generation that would resolve the confusion resulting in Indian customs authorities denying importers of the fuel duty concessions granted in last year’s budget”.

China
Chinese buyers are already in the market after celebrating Lunar Year celebration for more than a week. However, according to suppliers, the bids are from China is not much attractive for suppliers.

Indonesian coal market was almost flat last week and expected some positive correction coming week, a trader said from Kalimantan.



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