Tuesday, January 5, 2010

05 January 2010, Price Update

Jakarta, 05 January 2010

Subject: NEW Coal price list.


 

Dear customers,

Happy New Years 2010, more success to you all and the mining industry will more flourishes.


 

The 2010 starting with increasing coal rice approx US 2-4 US$ / MT, this conditions happen after raining season in Kalimantan.


 

In east Kalimantan at December coal producer having difficulty with the flood make the production and transshipment going slow.

For south Kalimantan, beside flood the jetty slot is too difficult to get, because a lot of demand in December and work day is only short, cut by Islamic holyday, Christmas , and New Year.


 

A projection of future coal demand is established using the government's official plans. Key uncertainties about future coal demand are identified and assessed, particularly the extent to which the government is likely to achieve its planned role for coal in the power generation sector


 

China is the key — China's production is increasing but so is demand. China's surging imports have underpinned prices for much of 2009. We expect some moderation short term, but a sustained robust imports in 2010. China's increased

production costs driven by safety and consolidation will underpin international prices. Lower freight rates will also be supportive of imports.


 

And India too — In India, 20GW of coal fired electricity generating capacity using imported coal will boost thermal coal import demand to 60Mt in 2012. Coking coal shortages are even more severe, and rising crude steel production and displacement of sponge iron by blast furnace capacity is expected to increase imports to 75Mt by 2014.


 

In 2009 Indonesian coal market close at 260 Million Ton, more from the government target 230 Million tones, for 2010 the Indonesian government have target for coal producer 250 Million tones.

But we believe the demand will up to 280 Million Tones including demand from Indonesian electric company (PLN) in 2010 reach more than 70 Million.


 

Export to India at 2009 reach 30 Million MT will increase to 50 Million MT in 2010 regarding increasing coal demand for India power company.


 

The strength of world coal demand in 2010 will increase capacity for Indonesian coal producer, we predict the coal price in 2010 will high, not too high like year 2007 but we predicted will reach US$ 80-85 / MT.


 

Regards,

PT.Karunia Alam Energindo


 

Prasetianto W Mangkusubroto

Director


 


 

SOUTH KALIMANTAN

Specifications for Steam Coal, Low to Middle GCV

No

ITEM

5100 - 5300

1

Total Moisture (ARB)

38% Max

2

Inh. Moisture (ADB)

13% Max

3

Ash Content (ADB)

5.0 %

4

Total Sulphur (ADB)

0,3 %

5

Volatile Matter (ADB)

43% Approx

6

Fixed Carbon (ADB)

By balance

7

GCV (ADB)

5400 Max

8

HGI

55

9

Volume Capacity

60.000 – 120.000 MT

10

FOB On Mother Vessel

USD 31 (Barge)

11

Term Payment

Confirm LC at sight Non Transferable.

ITEM

5500 – 5300

Total Moisture (ARB)

36 % Max

Inh. Moisture (ADB)

18 % Approx

Ash Content (ADB)

8 % Max

Total Sulphur (ADB)

1 % Max

Volatile Matter (ADB)

42 Approx

Fixed Carbon (ADB)

By Difference

GCV (ADB)

5500 – 5300

HGI

50-60

Volume Capacity

60.000 + 10%

FOB On Mother Vessel

USD 36 (barge)

Term Payment

Confirm LC at sight Non Transferable


 

ITEM

5800 – 5600

Total Moisture (ARB)

28 % Max

Inh. Moisture (ADB)

15 % Approx

Ash Content (ADB)

12 % Max

Total Sulphur (ADB)

1 % Max

Volatile Matter (ADB)

45 Approx

Fixed Carbon (ADB)

By Difference

GCV (ADB)

5800 – 5600

HGI

45-50

Volume Capacity

60.000 + 10%

FOB On Mother Vessel

USD 52

Term Payment

Confirm LC at sight Non Transferable


 

ITEM

6300 – 6100

Total Moisture (ARB)

18 % Max

Inh. Moisture (ADB)

10 % Approx

Ash Content (ADB)

14 % Max

Total Sulphur (ADB)

1 % Max

Volatile Matter (ADB)

38 Approx

Fixed Carbon (ADB)

By Difference

GCV (ADB)

6300 – 6100

HGI

38-45

Volume Capacity

60.000 + 10%

FOB On Mother Vessel

USD 60

Term Payment

Confirm LC at sight non Transferable


 


 

Specifications for steam coal,

ITEM

6500 – 6300

Total Moisture (ARB)

14 % Max

Inh. Moisture (ADB)

7 % Max

Ash Content (ADB)

14 % Max

Total Sulphur (ADB)

1 % Max

Volatile Matter (ADB)

34 Approx

Fixed Carbon (ADB)

By Difference

GCV (ADB)

6500 - 6300

HGI

35-40

Volume Capacity

30.000 + 10%

FOB On Mother Vessel

USD 65

Term Payment

Confirm LC at sight Non Transferable


 

EAST KALIMANTAN

ITEM

5100 - 5300

Total Moisture (ARB)

38% Max

Inh. Moisture (ADB)

13% Max

Ash Content (ADB)

5.0 %

Total Sulphur (ADB)

0,3 % - 1 max

Volatile Matter (ADB)

43% Approx

Fixed Carbon (ADB)

By balance

GCV (ADB)

5300 Max

HGI

44-45

Volume Capacity

60.000 – 120.000 MT

FOB On Mother Vessel

FOB BARGE

US$ 36

US$ 31

Term Payment

Confirm LC at sight Non Transferable.


 

ITEM

6300 – 6100

Total Moisture (ARB)

14-18 % Max

Inh. Moisture (ADB)

10 % Approx

Ash Content (ADB)

14 -16 % Max

Total Sulphur (ADB)

1 % Max

Volatile Matter (ADB)

42 Approx

Fixed Carbon (ADB)

By Difference

GCV (ADB)

6300 – 6100

HGI

45

Volume Capacity

60.000 + 10%

FOB On Mother Vessel

FOB BARGE

US$ 60 (FOB Vessel)

Term Payment

Confirm LC at sight non Transferable


 

ITEM

6500 – 6300

Total Moisture (ARB)

14 % Max

Inh. Moisture (ADB)

7 % Max

Ash Content (ADB)

14 % Max

Total Sulphur (ADB)

1 % Max

Volatile Matter (ADB)

34 Approx

Fixed Carbon (ADB)

By Difference

GCV (ADB)

6500 - 6300

HGI

35-40

Volume Capacity

30.000 + 10%

FOB On Mother Vessel

FOB BARGE

US$ 65

US$ 60

Term Payment

Confirm LC at sight Non Transferable


 

COOKING COAL / HIGH KCAL

ITEM

7900

Total Moisture (AR)

9 %

Inh. Moisture (ADB)

2.5 %

Ash Content (ADB)

5.5 %

Total Sulphur (ADB)

0.4 %

Volatile Matter (ADB)

28 -36 %

Fixed Carbon (ADB)

By Difference

GCV (GAD)

7900 Kcal / Kg

HGI

Min 45

CSN / FSI

6 (indicative)

Maximum Fluidity (ddpm)

> 500

Phosphorus (adb) %

0.03 %

MMR %

1.28 %

Initial Deformation (degree Celsius)

>1350

Volume Capacity

40.000 – 60.000

FOB On Mother Vessel

Call us

Term Payment

Confirm LC at sight non Transferable


 

ITEM

7900

Total Moisture (AR)

9 %

Inh. Moisture (ADB)

2.5 %

Ash Content (ADB)

5.5 %

Total Sulphur (ADB)

0.4 %

Volatile Matter (ADB)

28 -36 %

Fixed Carbon (ADB)

By Difference

GCV (GAD)

7900 Kcal / Kg

HGI

Min 45

CSN / FSI

6 (indicative)

Maximum Fluidity (ddpm)

> 500

Phosphorus (adb) %

0.03 %

MMR %

1.28 %

Initial Deformation (degree Celsius)

>1350

Volume Capacity

40.000 – 60.000

FOB On Mother Vessel

Call us

Term Payment

Confirm LC at sight non Transferable