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Saturday, 23 June 12
COAL PRICES APPETITE FOR ROLLER-COASTER RIDES


COALspot.com - SGX AsiaClear OTC Coal Swaps have suffered something of a roller-coaster ride in terms of prices during this week. SGX’s Indonesian sub-bituminous coal and CFR South China coal contracts swaps for August delivery lost its direction during this week, but ended with a  little positive trend.

SGX’s Indonesian sub-bituminous coal swaps for August delivery dropped only 0.58 percent WoW and CFR South China coal contracts drops only 0.28 percent on W-o-W.

According to DSP of SGX AsiaClear OTC coal swaps, Indonesian sub-bituminous coal swaps for August 2012 delivery closed at US$ 62.13 / MT on 22 June 2012 (Friday), 8pm SG Time compared to Monday opening of US$ 61.77 / MT.  Indonesian sub-bituminous coal swaps gained 0.58 percent compared to Monday (18/6/2012) Opening and Friday (22/6/2012) closing. In the meantime, CFR South China coal contracts closed at US$ 86.25 on Friday instead of US$ 86.50 on Monday opening.



The August 2012 swap contract for Indonesia sub-bituminous coal was opened on Monday at US$ 61.77 / MT and closed on Friday at US$ 62.13 / MT gained US$ 0.36 (0.58 percent W-o-W) , according to SGX AsiaClear OTC Coal Swaps.

CFR South China Coal contracts fell US$  0.25 (-0.28 percent W-o-W) to US$  86.25 per mt for the same period. Indonesia sub-bituminous coal August delivery  gained 1.88 percent US$ 1.15 per ton DoD and CFR South China Coal gained 0.46 percent or US$ 0.40 per ton DoD.

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

The Q4 deliver of Indonesia sub-bituminous coal was gained US$ 1.37 / MT to US$  64.85 a metric ton on Friday  from US$  63.48 on Monday opening. CFR South China Coal contract declined US$ 0.45 (-0.50 percent) per mt to US$ 88.55 compared to Monday opening of US$  89.00, according to data released by SGX.

Indonesian sub-bituminous coal swap for August delivery drops -11.43 percent M-o-M and the meantime CFR South China coal contracts for August delivery dropped  -8.97 percent M-o-M.

The Q4  swap contract for Indonesia sub-bituminous coal was also dropped  -8.84 percent  M-o-M and CFR South China coal contracts dropped  -7.87 percent  M-o-M.

Falling coal prices send miner’s share price into a steep decline. Indonesian coal miners shares were dropping since early of this month. However Indonesian big scale coal miners are still clam and they believe the current coal price trend will be changed soon.

Bumi Resources, the Indonesia's largest coal producer,  doesn’t  want to review their expansion plan for 2013 in light of the current coal price weakness, According to Dileep Srivastava, corporate secretary of company. 

"We view present spot weakness as temporary, seasonal and rise as winter approaches", he said in a note.



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