New coal swap contract to go live on June 1

By Adianto P. Simamora

Ginga Petroleum (Singapore) Pte. Ltd., said that it would launch a new API8 swap contract, formerly known as CFR China 5,500 on its electronic trading systems on June 1.

API8 swap contract will be settled against API8 index, published jointly by Argus and IHS McCloskey, reflecting price of 5,500 kcal/kg Calorific Value Net As Received multi-origin coal delivered to South China.

Ginga Petroleum said that it is confident the contract will be an efficient hedging instrument for coal industry participants, from producers, miners to end users, traders, banks and any party that has exposure to China coal prices on delivered basis.

"The Asia Pacific coal market has been growing extensively over the last few years with more commoditization and hedging activities, and the launch of API8 contract would come at a time where there would be existing robust interest whilst providing the opportunity for further growth and development," the company said in the statement made available to Petromindo.com.

Editing by David Mustakim