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Monday, 07 April 14
API 8 CFR SOUTH CHINA COAL SWAPS GAINED 2.09% M-O-M


COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries gained 2.09 percent month on month and closed at US$  75.68 per mt as on Friday 4 April 2014. The CFR South China Coal swap for delivery Q4 2014 lost day on day but gained week on week and month on month  according to SGX AsiaClear OTC coal swap's reports released week ended 4 April 2014.

SGX has launched SGX Thermal Coal Futures on 21 Oct 2013.

Q4 delivery swap closed at US$ 76.42 a ton on 4 April 2014, a US$ 0.25 higher from a month and US$ 0.25 higher from a week ago closing of US$ 76.17. API 8 CFR South China coal shipment price for Q1'15 delivery has gained US$ 0.27 month on month.

Q1’15 delivery swap closed at US$ 77.25 pmt on 4 April 2014, a $ 1.57 higher compared to Q2’ 2014 closing.

API 8 CFR South China Coal swap for average Q4’ 2014 deliveries closed US$  0.74 (0.98%) higher compared to average Q2’ 2014 delivery price of US$ 75.68 on 4 April 2014. In the meantime, the average Q1 2015 coal swap was also closed  2.07 percent (US$ 1.57) higher than Q2’ 2014 swaps for the same period. According to this last week's swaps trend, Q4 2014 and Q1 2015 coal swaps are higher compared to Q2 prices. Market is showing a positive move compare to Q2 prices versus end of this year or early next year prices.

API 8 CFR South China Coal for Q2’ 2014 delivery swap was achieved a highest price (US$ 75.75) on 3 April 2014, and swap experienced a lowest closing (US$ 75.52) on 1 April 2014.

API 8 CFR South China Coal swaps for deliveries Q2, Q4 and Q1 next year gained month on month and week on week.

China's coal price has dropped to the lowest level since end-2008 and Fitch does not expect market conditions to meaningfully improve in the short-term. The coal market is still oversupplied with low cost imports and heated price competition among China's large domestic mining companies, says Fitch Ratings. 

Fitch ratings has downgraded a China-based coal miner’s rating recently with the view that coal prices will remain subdued for an extended period.

Fitch says in its rating upgrade that, the Chinese coal demand is likely to remain sluggish given the overall deceleration in China's industrial sector growth, increasing share of renewable capacity in power generation and policy headwinds from China's initiatives to reduce environment pollution, especially in eastern China.

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



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