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Monday, 03 February 14
SUB-BIT INDONESIA COAL SWAP GAINED WEEK ON WEEK


COALspot.com – Swaps prices gained for thermal coal loading from Indonesia, the world’s largest exporter of the fuel, according SGX.

The contract for Indonesian sub-bituminous coal in the third quarter rose 42 cents to $ 60.42 a metric ton week on week according to SGX. The Q4 contract held at $ 60.60 a ton.

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

Sub-Bit Indonesia coal swap (FOB) for average Q1’ 14 delivery lost 1.86% pmt month on month on Friday 31 January 2014. The Indonesian coal swaps for average Q1’ 2014 gained on day & week but lost on month according to AsiaClear OTC coal swap's reports released last Friday.

Sub-Bit FOB Indonesia coal swap for (average) Q1’ 14 delivery was closed at US$ 60.84 per MT or US$ 0.06 higher day on day.

Q3' 2014 delivery for the sub-bit Indonesia's coal swap was closed at US$ 60.42 per MT on 31 January 2014, US$ 0.42 higher than last Friday (24 Jan 2014) price and US$ 0.91 lower than a month ago price of US$ 61.33.

The Q4 delivery price flat on day, gained on week and fell on month. Coal swap for Q3 14 also followed Q4 trend. Average calendar 2015, swaps lost around US$ 1.00 per MT on month.

Asia Clear OTC Sub-Bit Indonesia coal swap for average Q3 14 delivery closed US cents 42 (0.69%) lower compared to average Q1’ 2014 delivery price of US$ 60.84 on 31 January 2014.  In the meantime, the coal swap for Q4 delivery, closed average US cents 24 (0.39 %) lower than Q1 delivery for the same period.

Sub-Bit FOB Indonesia coal swap for second half of 2014 or Q3 and Q4 delivery swaps were closing lower than Q1 swaps and showing a weak direction. 

Coal swap for delivery Q1 gained US cents 6 (0.10%) on day and US cents 31 (0.51%) on week, but lost US$ 1.15 (1.86%) on month. Q4' 2014 delivery price has also lost 1.59% month on month, gained 0.83% on week and flat on day as of 31 January 2014.

The sub-bit Indonesia's coal swap for Q1’ 2014 delivery has achieved highest price of US$ 60.84 / MT the last day of the month or the week ended on 31 January 2014 and has entered its lowest level (US$ 60.77 / MT) on 29 January 2014).

Sub-Bit Indonesia coals swap for delivery Q3 & Q4 2014 shows a weak performance compared to Q1 trend.

In the meantime, the Indonesian based English news paper, the Jakarta globe reported that, the Indonesian government will raise the coal royalty for IUP holders to 13.5 percent as previously agreed by lawmakers, as stated by R. Sukhyar, the director general for coal and mineral resources. Currently, IUP holders pay 3 percent to 5 percent as royalty for coal, significantly lower than the 13.5 percent levied on CCoW holders.


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



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