Swap contracts were unchanged for lower-quality thermal coal from Indonesia, the world’s biggest exporter, according to Ginga Petroleum Singapore Pte. The nation is celebrating the Muslim holiday of Idul Fitri until tomorrow.
The swap for sub-bituminous coal with a calorific value of 4,900 kilocalories a kilogram for loading from Indonesia in the fourth quarter remained at $64 a metric ton on a net-as-received basis yesterday, the energy broker said in an e-mail today. The September contract was stable at $61.75.
The contract for coal with a heating value of 5,500 kilocalories a kilogram for shipment to South China in the fourth quarter was unchanged at $83.35 a ton on a net-as-received basis, Ginga said. The swap for September remained at $82.10.
China’s benchmark thermal-coal price at Qinhuangdao port was unchanged at a range of 620 yuan ($97.51) to 635 yuan a ton as of Aug. 19 from a week earlier, according to data from the China Coal Transport and Distribution Association.
A commodity swap is a financial agreement whereby a floating price is exchanged for a fixed rate over a specified contract period.
About 60 percent of Indonesia’s coal is classified as sub-bituminous. Higher moisture levels and a lower carbon content reduce the heating value compared with grades with a better quality stock. Sub-bit coal has kilocalories of less than 6,100 per kilogram, according to the Indonesian energy ministry.