According to Ginga Petroleum Singapore Pte Ltd swap contracts rose for thermal coal from Indonesia, the world biggest exporter of the power station fuel. Prices for delivery to China dropped.

Ginga said sub bituminous coal with a calorific value of 4,900 kilocalories a kilogram for loading from Indonesia in October gained 5 cents to USD 61.20 per ton on a net as received basis recently. The fourth quarter contract climbed 5 cents to USD 62.30 a ton.

The energy broker said the contract for coal with a heating value of 5,500 kilocalories a kilogram for delivery to South China in the fourth quarter fell 5 cents to USD 83.55 on a net as received basis. The swap for October was 5 cents lower at USD 82.95 a ton.

UOB Kay-Hian Ltd said China benchmark coal price may rise to CNY 650 a ton in the fourth quarter up by 3% from the previous three months amid reduced inventories and production cuts.

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

Source - The Jakarta Globe

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