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Coal Prime Contract
JAKARTA- Jakarta Futures Exchange (JFX) is aiming for the volume of transaction from the physical coal market around 75,000 tons this year, the amount is far less than the original target which is 10 million tons.
JFX aim mini target. The bid price in the physical market inaugural coal will be auctioned with a range of US $76-US $ 79 per ton.
Previously, JFX was aiming for at least ' 20% from the total production of the company seller in the physical contract of the black gold that was originally scheduled to be released in May. In other words, if the production target of PT Bukit Asam coal can reach 50 million tons this year, then JFX expecting about 10 million tons to be transacted through the stock exchange. Milawarma, the President Director of PT Bukit Asam Coal Mine (Persero) Tbk. says that the company is ready to offer 75,000 tons of coal this year.
“Until the opening day, PT Bukit Asam has about 17 existing companies from Japan, China, Malaysia, Dubai, and domestic as buyers.“ said Milawarma in the pers conference of JFX physical market on Tuesday (1/7). Later, the company will offer around 60.000 tons of 75.000 tons BA-70 HS with 7,000 calories kcal/kg coals to be shipped from Tarahan port, Bandar Lampung on September.
PTBA became the first mining company to sell its products in the physical market. Later, the JFX will continuously seeking for a buyer until the opening of the auction on August 21, 2014. The director of Jakarta Futures Exchange, M. Bihar Milky Wibowo, said later, every buyer will be charged for around 0,06% from the total transaction as an administrative cost and around 0,04% from the total transaction for the sellers. “Bid prime coal in the physical market will be auctioned in the rage of US $76 - $79 per ton, he said.
The pricing itself is set based on the observation of the coal market’s condition from BBJ. Furthermore, PT Bukit Asam will gradually increase the product volume to be traded in the physical market. The increase of the product volume will be adjusted as the growth of the transportation volume around the shipping location. Sherman Rana Krishna, Director of Jakarta Future Exchange, added that later, he’ll try to explore the other coal company, like PT Adaro Energy Tbk. (ADRO) US $73,64 per ton. “In order to decide the price of US$73,60 per ton, compared to HBA last month, later the Stone physical market will have an increase for US $0,04.
Head of Bappebti Sutriono said, that the reference price in the physical coal market will be used as a tool to build and spread the price information from the market participants. In addition, this physical market can be used as a new pricing alternative that has been referred to foreign country for the whole time. After the physical market launch, JFX has been reviewing for the future market of oal commodity.
Source: Bisnis Indonesia, July 2 2014 page 21
By: Surya Rianto (redaksi@bisnis.co.id)
