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Saturday, 01 September 12
FALLING PRICES; BLEEDING MINERS


COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for October 2012 delivery lost 4.070  percent and 0.422 percent respectively on W-o-W and D-o-D on Friday (31 August 2012) closing, according to the data released by AsiaClear OTC coal swaps on 31st August 2012.

CFR south china coal contract also followed sub-bit Indonesia, fell 1.281 percent on W-o-W and 0.410 percent D-o-D on 31st August 2012.

Sub-Bit FOB Indonesia coal swaps for October delivery opened on Tuesday (28 August  2012) at US$ 63.88 pmt and closed on Friday (31 August 2012) at $ 61.28 lost around $ 2.61 pmt. In the meantime, the Q1 and Cal 2013 deliveries lost average US$ 0.41 per MT. The Indonesian coal swaps for October deliveries not performed well the week ended 31st August 2012.

Cal 2013 deliveries for  Sub-Bit Indonesia coal was opened at $ 69.31 pmt on 28 August 2012 and closed $ 68.90 on 31st  August 2012.


CFR South China coal shipments to China for October & December, Q1 & cal 2013 deliveries negatively week on week.

On 28 August CFR South China coal shipments to China  (delivery October 2012) was opened at $ 83.50 and closed on 31 August at $ 82.43 lost $ 1.07 pmt. The swap lost 0.410 percent D-o-D and 1.281 percent W-o-W on Friday.

Sub-Bit FOB Indonesia coal contracts for October 2012 delivery closed at US$ 61.28 on Friday (31 August 2012) compared to US$ 63.23 Tuesday (28 August 2012) closing, lost  US$ 1.95  per MT. CFR South China coal October delivery lost US$ 0.82 for the same period.

CFR South China coal, Q1 13 delivery lost 0.688  percent W-o-W and lost 0.140 percent D-o-D. Sub-Bit FOB Indonesia coal contracts for Q1 13 delivery lost  0.616 percent or US$ 0.41 pmt W-o-W and 0.015 percent D-o-D and closed at US$ 66.09.

CFR South China delivery (Q1 2013) has closed US$ at $ 85.16 on 31 August compared to US$ 85.75 opening on Monday (28 August 2012).


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

Sub-Bit FOB Indonesia coal contracts and CFR South China coal for Cal 2013 deliveries closed at $ 68.90 pmt $ 88.03 pmt respectively on Friday. Cal 2013 delivery prices for Sub-Bit FOB Indonesia coal and CFR South China coal are $ 7.62  and $ 5.60 higher compared to October deliveries.

According to moody's forecasts, the Newcastle thermal coal price, the benchmark seaborne coal price in Asia, to average around USD 90 to USD 95 per tonne in 2012 and that there won't be a meaningful rebound in 2013 unless the demand and supply balance improves."

BHP Billiton, the world's biggest miner, expects to see lower prices in the "long-term" for its commodities as slower economic expansion in China cools demand, as stated by The Telegraph. BHPB, one of the largest iron ore and coal producer in the world.

"Coal as well as iron market directions are not stable. Market's forward cures are also not promising for miners", said a coal miner in Indonesia. However Indonesian miners are expecting that,  the market make little positive move when the annual contract negotiation starts for 2013 deliveries.

According shipping companies, Indians are starting to move more coal during end of August and this trend  will continue in September.

Vistaar Shipping Singapore, a ship operator said, the supramax freight market from Indonesia to India showed some signs of improvement the week end 31 August 2012. There appears to be more coal cargoes coming in the market and expect more shipments in September.

"Kites rise highest against the wind — not with it." - Winston Churchill



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