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Sunday, 04 August 13
COAL SWAP MARKET HAS LOST DIRECTION; STRUGGLING TO CATCH UP


COALspot.com –  Sub-Bit Indonesia coal swaps (FOB ) for average October 2013 delivery slightly down on day, week and month on Friday, 2 August 2013, according to AsiaClear OTC coal swap's reports.  Sub-Bit FOB Indonesia coal swap for average October 2013 delivery was closed at US$ 58.25 per MT or US$ 0.35 lower compared to the same period last week.

DSP of SGX AsiaClear OTC Coal Swaps - Sub-Bit FOB Indonesia Coal
October 2014 delivery for the sub-bit Indonesia's coal swap was closed at US$ 61.00 per MT on 2 August 2013.  Average October 2014 delivery price lost on week and month but flat on day.

Q1 2014,  sub-bit Indonesia's coal swaps trend follows the trend of the October 2014, flat on day and weak on week and month.


Asia Clear OTC Sub-Bit Indonesia coal swap for average Q1 2014 delivery closed US$ 1.30 (2.23%) higher compared to average October 2013 delivery price of US$ 58.25 on 2 August 2013.  In the meantime, the October 2014 coal swap has closed US$ 2.75 (4.72%) higher than October 2013 swap for the same period.

This Friday’s the sub-bit Indonesia's coal swap for October 2013 delivery, lost US$ 1.65 (2.75%) month on month. October 2014 and Q1 2014 deliveries also lost US$ 1.35 (2.16%) and US$ 1.37 (2.24%) respectively M-O-M.

Sub-Bit Indonesia coal swap for October 2013 lost on day, week and month and 2014 and Q1 2014 deliveries lost on month and week and flat on day.

The sub-bit Indonesia's coal swap for October 2013 delivery has achieved highest price (US$ 58.60/ MT) on 29-Jul-13. In the meantime, swap has reached its lowest level (US$ 58.25/ MT) on 2 August 2013.

DSP of SGX AsiaClear OTC Coal Swaps - API 8 CFR South China Coal
SGX has launched API 8 CFR South China Coal Swap on 29 April 2013 and replaced the previous swap.

API 8 CFR South China Coal shipment for average October 2013 delivery price lost US$ 0.20 per mt on day and US$ 0.35 on week, and US$ 2.28 per mt on month on Friday, 2 August2013.

The average October 2013 swaps lost on day, week and month. In the meantime, October 2014 and Q1 2014 delivery swap flat on day gained on week but lost on month.

October 2014 delivery price closed at US$ 81.25 a ton on 2 August 2013, a US$ 0.52 higher from a week. Q1 2014  API 8 CFR South China coal shipment prices gained US$ 0.05 PMT (0.06 percent) on week.

API 8 CFR South China Coal swap for average Q1 2014 delivery closed US$ 1.55 (2.03 %) higher compared to average October 2013 delivery price of US$ 76.05 on 2 August 2013. In the meantime, the October 2014 coal swap has closed US$ 5.20 PMT (6.83 %) higher than October 2013 swap for the same period.

API 8 CFR South China Coal swaps for October 2013 delivery have achieved a highest price (US$ 76.45) on 30 July 2013. In the meantime, swap experienced a lowest level (US$ 76.05) on 2 August 2013.

October 2014 coal price movements are promising, but Q1, 2014 prices just slightly higher compare to October 2013 prices. Due to week-long holidays in Indonesia, the Indonesian coal price movements are expected to be flat at least until third week of August 2013.

The coal market at the current time is showing a general ‘lack of direction’ according to market player. “Demand is there, but the prices are falling”, said a coal producer from Indonesia. Coal analysts believe that both coal producers and buyers sentiment is being driven at the moment by China and India rather than other major coal consuming countries such as Japan and South Korea.

Indonesia has revised down its government declared bench mark price for coal by 6.11% in August 2013. Government has fixed minimum selling price of coal with GCV 6322 on GAR basis at US$ 76.70 per mt .

The above article is subject to SGX’s and COALspot.com’s disclaimer clauses.



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