Bloomberg reported that swap contracts fell for lower quality coal from Indonesia while prices for deliveries to China climbed.

According to Ginga Petroleum Singapore Pte “The price for sub bituminous coal with a heating value of 4,900 kilocalories a kilogram for loading from Indonesia in the third quarter dropped 15 cents to USD 63.60 a tonne on a net as received basis yesterday while the July swap was 5 cents lower at USD 63.20 a tonne.”

On the other hand “Coal with a calorific value of 5,500 kilocalories a kilogram for shipment to South China in July gained 40 cents to USD 85.50 a tonne on a net as received basis while the swap for the third quarter rose 25 cents to USD 86.25.”

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

Source - Bloomberg

(www.coalguru.com)