Coal Methodology

METHODOLOGY AND SPECIFICATIONS GUIDE
Coal
(Latest Update: April 2014)
[COAL]
PLATTS COAL PRICING
METHODOLOGIES 2
1. PLATTS COAL PUBLICATIONS
ASSESS PRICES IN THE FOLLOWING
FORMATS: 2
2. ALL PLATTS COAL ASSESSMENTS
SHARE THE FOLLOWING FEATURES
AND STANDARDS: 3
3. PLATTS INTERNATIONAL 90-DAY
DAILY FORWARD COAL ASSESSMENTS 4
4. PLATTS DAILY 90-DAY CFR INDIA
THERMAL COAL ASSESSMENTS 4
5. PLATTS DAILY 30-60 DAY CFR INDIA
THERMAL COAL ASSESSMENTS 5
PLATTS DAILY RICHARDS BAY-INDIA
FREIGHT ASSESSMENTS 6
PLATTS DAILY KALIMANTAN-INDIA
FREIGHT ASSESSMENTS 6
6. PLATTS FORWARD CURVE COAL 6
7. PLATTS DAILY FOB NEWCASTLE 5,500
THERMAL COAL ASSESSMENT 7
8. PLATTS DAILY FOB KALIMANTAN
4,200 THERMAL COAL ASSESSMENT 8
3,800 THERMAL COAL ASSESSMENT 9
10. PLATTS DAILY FOB US EAST COAST
11. PLATTS DAILY FOB US GULF COAST
EASTERN THERMAL COAL
ASSESSMENT 10
WESTERN THERMAL COAL
ASSESSMENT 10
13. PLATTS DAILY FOB CANADA/
US WEST COAST THERMAL COAL
ASSESSMENT 11
14. PLATTS INTERNATIONAL
DAILY PHYSICAL THERMAL COAL
ASSESSMENTS 11
15. PLATTS DAILY FOB RICHARDS BAY
5,500 THERMAL COAL ASSESSMENTS 12
16. PLATTS DAILY CFR SOUTH CHINA
17. PLATTS DAILY FOB QINHUANGDAO
5,500 KCAL/KG NAR THERMAL COAL
ASSESSMENT 14
18. CHINA COAL INDEX - 1 (CCI 1)
5,500 NAR THERMAL COAL
ASSESSMENT 14
19. CHINA COAL INDEX 8 (CCI 8)
5,500 NAR THERMAL COAL
ASSESSMENT 15
20. PLATTS REGIONAL DAILY FOB
BARGE ARA ASSESSMENT 16
21. PLATTS WEEKLY 90-DAY THERMAL
COAL ASSESSMENTS 17
22. PLATTS DAILY METALLURGICAL
COAL ASSESSMENTS 18
23. PLATTS MONTHLY METALLURGICAL
COAL ASSESSMENTS 18
24. OTHER INDICES
AND PRICING DATA 19
25. DISCONTINUED PRICING DATA 20
SPECIFICATIONS 21
METHODOLOGY AND SPECIFICATIONS GUIDE COAL
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PLATTS COAL PRICING METHODOLOGIES
This statement of methodology for Platts coal assessments reflects core principles
that long have provided the foundation for Platts price reporting. It also includes
detailed information on the formation of Platts coal assessments and the
specifications for the various products assessed.
Platts methodology will continue to evolve as coal markets change. This update
reflects the change in methodology for the US OTC Broker Indexes.
For questions regarding European, Asian and other non-North American coal
assessments, please contact James OConnell at james_oconnell@platts.com. For
questions regarding North American assessments, please contact Brian Jordan at
brian_jordan@platts.com.
Platts also has a compliance staff independent of the editorial group. For more
information, contact Director of Compliance John Burnett, 212-904-6943
(john_burnett@platts.com).
Platts discloses publicly the days of publication of its price assessments
and indices, and the times during each trading day in which Platts considers
transactions in determining its assessments and index levels. The dates of
publication and the assessment periods are subject to change in the event of
outside circumstances that affect Platts ability to adhere to its normal publication
schedule. Such circumstances include network outages, power failures, acts of
terrorism and other situations that result in an interruption in Platts operations
at one or more of its worldwide offices. In the event that any such circumstance
occurs, Platts will endeavor, whenever feasible, to communicate publicly any
changes to its publication schedule and assessment periods, with as much advance
notice as possible.
1. PLATTS COAL PUBLICATIONS ASSESS
PRICES IN THE FOLLOWING FORMATS:
Coal Traders Daily OTC Assessments reflect over-the-counter trading in
the four standard US OTC coal products for delivery in the prompt month,
the prompt month plus one, three forward quarters, and forward calendar
year for selected specifications (see page 11). The four Platts Daily OTC
Assessments were renamed effective December 20, 2010. The underlying
specifications and methodology were not changed. CAPP barge OTC was
previously named NYMEX 12,000/< 1%; CAPP rail (CSX) OTC was CSX
12,500/1%; PRB 8,800 OTC was PRB 8,800/0.35%; and PRB 8,800 OTC was
PRB 8,400/0.35%.
The assessments are formulated based on systematic Market on Close practices
and reflect market values at the end of the trading day, defined by Platts as 4 pm
Eastern prevailing time for North American coal markets. Transactions, bid and
offers, and other market information are compared and analyzed. While all available
information on trading activity that occurs throughout the day is considered, bids
and offers made and transactions done are analyzed in relation to time of day to
formulate values at the end of the trading day. To assess standard products and
time periods for which there is little or no trading activity on a given day, editors, in
addition to making use of any transactional data or other market information, use
current spread relationships among standard products and time periods.
The rollover date for Coal Traders Daily OTC Assessments is the 26th of the
month. For example, for assessments for trade date February 25, the prompt month
is March. On February 26, April becomes the prompt month. The rollover date is
applied consistently to quarters. When the 25th falls on a weekend or a holiday, the
last business day preceding the 25th becomes the final day for that prompt month.
When the 26th falls on a weekend or a holiday, the new prompt month begins on
the first business day following the 26th.
Coal Traders OTC Broker Index reflect trading in the four standard US OTC
coal products, plus one spread product, for the prompt month and prompt
quarter. The methodology for the OTC Broker Index is the same as for the
Daily OTC Assessments. The assessed values will be the same for the
corresponding time periods and products because the methodology is the
same and the four standard products in the OTC Broker Index are the same
standard products and have the same underlying specifications as the four
standard products in the OTC Daily Assessments. (NYMEX 12,000/< 1% is
the same product as CAPP barge OTC; CSX 12,500/1% is the same product
as CAPP rail (CSX) OTC; PRB 8,800/0.35% is the same product as PRB 8,800
OTC; and PRB 8,400/0.35% is the same product as PRB 8,800 OTC.)
Coal Traders OTC Broker Index assessments are formulated based on systematic
Market on Close practices and reflect market values at the end of the trading day,
defined by Platts as 4 pm Eastern prevailing time for North American coal markets.
Transactions, bid and offers, and other market information are compared and analyzed.
While all available information on trading activity that occurs throughout the day is
considered, bids and offers made and transactions done are analyzed in relation to time
of day to formulate values at the end of the trading day. To assess standard products
and time periods for which there is little or no trading activity on a given day, editors,
in addition to making use of any transactional data or other market information, use
current spread relationships among standard products and time periods.
The rollover date for Coal Traders OTC Broker Index assessments is the 26th of the
month. For example, for assessments for trade date February 25, the prompt month
is March. On February 26, April becomes the prompt month. The rollover date is
applied consistently to quarters. When the 25th falls on a weekend or a holiday, the
last business day preceding the 25th becomes the final day for that prompt month.
When the 26th falls on a weekend or a holiday, the new prompt month begins on
the first business day following the 26th.
Coal Traders daily FOB US export assessments reflect the transactable value for
the spot market on an FOB basis, loading 14-45 days forward from the date of
publication. The four assessments cover coals of a limited range of specifications,
normalized to one standard specification for each assessment, for export from the
US East Coast, the US Gulf Coast, and the Canadian/US West Coast.
Coal Outlooks Weekly US Price Survey covers trading in the traditional
physical market in forward quarters and the forward calendar year in
all major US producing regions. Two assessments in the Weekly US
Price Survey were renamed effective December 20, 2010; the underlying
specifications and methodology were not changed. CAPP barge physical
was previously named NYMEX look-alike; CAPP rail (CSX) physical was
Big Sandy/Kanawha with the same, unchanged specifications listed in the
Weekly Price Survey table and on page 11 of this methodology.
Coal Outlooks OTC Hedge Price Monitor gives the Friday-through-Thursday
average of the Platts Daily OTC Assessments published in Coal Trader for
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delivery in forward quarters and the forward calendar year. The weekly
averages in the OTC Hedge Price Monitor were renamed effective December
20, 2010 to reflect the name changes in the Platts Daily OTC Assessments.
Coal Trader Internationals Daily and Weekly 90-Day Forward Benchmark
Coal price assessments, which cover trading in the spot market for steam
coal delivery in the next 90 days from major global shipment and delivery
points.
Coal Trader Internationals Daily OTC Prices, which give daily prices for
physical trading in three benchmark specifications for prompt month
delivery. (US FOB export assessments are also published in Coal Trader
International on a delayed basis.)
Coal Trader Internationals OTC Benchmark Coal Prices, which cover
trading in the forward three months and forward quarter for five benchmark
specifications for the physical markets.
Coal Trader InternationalsCoking Coal pricing tables, which cover forward
trading in the 90-day-ahead coking coal spot market.
Coal Trader Internationals Metallurgical Coal Assessments, which provide
daily prices for physical hard coking coal reflective of three benchmark
specifications and two Dry Bulk Freight Assessments.
Platts Petcoke Assessments, current spot prices for the forward 90 days at
three terminals.
Platts Forward Curve-Coal, current buy/sell prices and a midpoint, for two
forward months, four forward quarters, and two forward years for three
benchmark specifications for the financial (paper) coal markets.
2. ALL PLATTS COAL ASSESSMENTS SHARE THE
FOLLOWING FEATURES AND STANDARDS:
Term: The rollover date for all US forward assessments is the 26th of the
month. For example, January 25 is the last day February is assessed as the
prompt month, and on January 26 March is assessed for the first time as
the prompt month. When the 25th of the month falls on a weekend or a
holiday, the last day of the prompt-month assessment is the last business
day preceding the 25th. The first assessment of the new prompt month is
on the 26th, or the first business day following the final assessment of the
previous prompt month. This rollover date is reflected consistently in the
assessments of the quarterly and calendar-year packages. International
daily physical coal (see section 4, below) and daily derivatives (see section
3, below) have different rollover dates. All prices are current prices for
physical delivery in the specified forward period or, in the case of financially
settled transactions, for the specified forward contract.
Frequency: All steam coal and petcoke markets for physical delivery are
assessed at least biweekly, and more active markets are assessed more
frequently as market activity merits. Coking coal markets are assessed at
least monthly. The markets in Coal Trader are assessed daily at the end
of each business day. The markets for 90-day forwards are assessed daily
and weekly, depending on their respective liquidity, and the daily physical
markets in Coal Trader International are assessed daily at the end of each
business day. Platts Forward Curve-Coal is assessed each business day.
The Platts Daily OTC Assessments published in Coal Trader are market-
on-close assessments based on trading through 4 pm US Eastern time; US
weekly assessments for the traditional physical market published in the
Weekly US Price Survey close at 2 pm US Eastern time on the final trading
day of the week. International physical and paper assessments close at 5
pm London time, at days end for daily assessments and on the final trading
day of the week for weekly assessments except for the daily regional FOB
barge ARA assessment, which as noted in section 5 below closes at 4:30
pm London time. The petcoke market, assessed weekly, closes at 11 am US
Eastern time on the final trading day of the week.
Market: For physical delivery, assessments are based on direct supplier-
consumer transactions and third-party transactions, and on bids and offers,
whether via traders, brokers, the over-the-counter market, or secondary deals
among consumers. For PFC-Coal, assessments are based on swaps traded in
Europe and Asia, including sellers, buyers, market takers and brokers.
For all markets, actual transactions, bids and offers are included where
discoverable. Platts believes every commodity has a tradable value, and
endeavors to produce an indication for a price at which a commodity
could trade, even if on a given day it has not done so. Assessments are
determined by considering bids and offers, from all participants, as well as
indirectly from timing spreads and trading patterns in related markets.
Effective dates: Weekly prices are those prevailing at the end of the
business week preceding the date of publication for Coal Trader and Coal
Trader International. Prices for daily assessments are those prevailing at the
end of the business days OTC trading preceding the date of publication of
Coal Trader and Coal Trader International.
Specifications: Specifications for physical assessments focus on a few of
the most-traded specifications, since there is a fairly constant relationship
among prices for various coal qualities in each region. For the Platts Daily
OTC Assessments and the OTC Broker Index assessments, specifications are
the same as those of the US Coal Trading Association and of CME Group
for its future and swaps contracts based on the standardized OTC products.
For PFC-Coal, we focus on the specifications most commonly traded in the
swaps market. The specifications for the four US FOB export assessments
reflect various coals for export, which are normalized to the specific
standard specifications for each assessment. There are no specifications for
export coals adopted by the US Coal Trading Association. See tables below.
Coal quality: Heat and sulfur content are considered the primary determinants
of steam coal price; ash as a secondary determinant is included in some
international tables. All coking coal quotes are for hard coking coal except as
noted in the table. Specifications in all tables should be considered a composite
benchmark of physical characteristics of available coals in the region. They are
not intended to represent a particular grade or brand of a given producer.
Source basis: For Coal Trader: Prices, with the exception of the US FOB
export assessments, are US$/short ton based on FOB quotes at the rail
or barge origin point. Prices for the US FOB export assessments are US$/
metric ton. Source standards for the Platts Daily OTC Assessments are the
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same as those of the US Coal Trading Association and of CME Group for its
future and swap contracts based on the standardized OTC products. CAPP
barge OTC is sourced from any dock located on the Ohio River between MP
306 and MP 317 or on the Big Sandy River; CAPP rail (CSX) OTC is sourced
from any rail loadout located on the CSX railroad within the Kanawha Rate
District or the Big Sandy Rate District capable of loading 100 car/10,000
ton unit trains in four hours or less; PRB 8,800 OTC and PRB 8,400 OTC are
sourced from any rail loadout located on the joint rail line in the southern
Powder River Basin within Converse or Campbell counties, Wyoming,
capable of loading 12,000 to 15,000 ton unit trains.
For Coal Trader International: Prices are in US$/metric ton FOBT (Free On
Board Trimmed for vessel balance) at the port of shipment except Europe/
ARA and the Japan and Korea West benchmarks which are CIF (delivery
freight inclusive). Steam coal is quoted on a GAR (Gross As Received) basis,
except for Europe/ARA, Richards Bay 6,000 kcal/kg, and Japan and Korea
West CIF, which are quoted on a NAR (Net As Received) basis.
Assessments reflect actual trading at the pricing point; the Japan CIF
assessment only is calculated from a basket of coal prices FOB Japans main
supplier countries plus a freight and insurance component. Weightings as of
October 2010 are: Australia (Newcastle), 70%; and Indonesia (Kalimantan
5,900 kcal/kg GAR), 22%, China (Qinhuangdao), 3%; Russia Pacific 3%, and
South Africa, Richards Bay 2%.
3. PLATTS INTERNATIONAL 90-DAY DAILY
FORWARD COAL ASSESSMENTS
Platts increased the frequency for five 90-day forward coal assessments on July
26, 2010: CIF Amsterdam-Rotterdam-Antwerp (ARA) basis; FOB Richards Bay coal
terminal, South Africa basis; FOB Newcastle, Australia basis; FOB Kalimantan 1
(5,900 kcal/kg); and FOB Kalimantan 2 (5,000 kcal/kg). The coal assessments are
published every UK business day and reflect the price of coal to be delivered (CIF) or
loaded (FOB) within the next 90-day period.
Specifications:
CIF ARA: 6,000 kcal/kg NAR, max sulfur 1%, 16% ash max.
FOB Richards Bay: 6,000 kcal/kg NAR, max sulfur 1%, 16% ash max.
FOB Newcastle: 6,080 kcal/kg NAR (6,300 kcal/kg GAR), max sulfur 0.7%,
13% ash max.
FOB Kalimantan 1: 5,900 kcal/kg GAR, max sulfur 1%, ash max 15%.
FOB Kalimantan 2: 5,000 kcal/kg GAR, max sulfur 0.8%, ash max 8%.
Volume: Assessments are normalized to 25,000 mt cargoes.
Timing: The assessments reflect the price of coal delivered or loaded in the next
90-day (three-month) period. The prompt month of the 90-day period moves forward
as of the 8th of each month, or closest forward business day.
For instance, the three months of the 90-day window on February 7 will be
February, March and April but as of February 8 will become March, April and May.
Assessment Time: The daily assessments are derived from firm trades, bids and
offers prevailing at market close at 17.00 London time for CIF ARA, FOB Richards
Bay and FOB Newcastle 6080 NAR and at 17.30 Singapore time for FOB Kalimantan
5,900 kcal/kg GAR and FOB Kalimantan 5,000 kcal/kg GAR. No trades or firm bids
or offers are considered for the assessment process after that time. Platts market
reporters will only assess coal based on demonstrable and verifiable data.
Assessment Process: Confirmed trades are given preference when making the
assessment. In the absence of trading, Platts uses firm bids and offers available in
the market. In addition, only bids and offers that are raised or lowered in realistic
increments are considered. In the absence of firm bids and offers, Platts may
consider other relevant market indicators including related markets, such as index-
linked business, other CIF Europe, freight costs, supply-demand constraints, the
forward swaps market, FOB barge and related factors when making an assessment.
Platts frequently cross-checks information and may track delivery of actual cargo
shipments. Integrity of the data is critical for market processes and Platts will
protect the quality of its assessments by verifying data and removing any sourcing
of distorting information.
Platts editors will contact the widest range and largest possible number of relevant
market participants to ensure its assessment accurately reflects current market
values. These market participants may include utility companies, traders, coal
producers and broking houses.
Platts gathers information including electronic trading data from many sources, but
the information must be verifiable for it to be considered in the assessment process.
4. PLATTS DAILY 90-DAY CFR INDIA
THERMAL COAL ASSESSMENTS
Platts launched on September 1, 2010 daily 90-day forward price assessments
for thermal coal delivered to east coast and west coast Indian ports under the
benchmark names Platts CFR India East (6,300 kcal/kg GAR) and Platts CFR India
West (6,300 kcal/kg GAR). Platts added four additional 90-day forward price points
to the India thermal coal assessments portfolio on October 1, 2010: Platts CFR India
East (5,900 kcal/kg GAR), Platts CFR India West (5,900 kcal/kg GAR), Platts CFR
India East 5,000 kcal/kg GAR) and Platts CFR India West 5,000 kcal/kg GAR).
Price Assessment: Platts publishes the transactable value for thermal coal,
indicating the price at which a cargo could be traded on CFR India basis at the close
of the assessment period on the day of publishing.
The CFR India East and West (6,300 kcal/kg GAR, 5,900 kcal/kg GAR and 5,000
kcal/kg GAR) assessments are designed to reflect the spot price for imported
thermal coal for arrival in India within the next 90-day period on an end-of-day
market-on-close basis, derived from trades, bids and offers verified in the market.
Platts assessments take into account demand/supply fundamentals in key consumer
markets. Assessments also take into consideration daily Asia-Pacific price movements
in associated commodity markets, including FOB coal prices for Richards Bay, South
African thermal coal, FOB coal prices for Kalimantan and spot freight rates for
panamax-sized and supramax-sized vessels on these trade routes to Indian ports.
This information will be gathered from credible, active participants involved in the Indian
imported coal market, including end users, traders, suppliers and other relevant parties.
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Availability: The CFR India East and West (6,300 kcal/kg GAR; 5,900 kca/
kg GAR and 5,000 kcal/kg GAR) thermal coal price assessments are published
daily in Platts Coal Trader International and on the Platts real-time news
service Platts European Power Alert page EP 0910, and are available via
Market Data category CI.
Specifications:
6,300 kcal/kg GAR, max sulfur 1%, 16% ash max.
5,900 kcal/kg GAR, max sulfur 1%, 15% ash max., total moisture range of 15-17%.
5,000 kcal/kg GAR, max sulfur 1%, 16% ash max., total moisture range of 22-25%.
Volume: The minimum-sized cargo considered relevant for price assessment
purposes is 40,000 mt.
Basis and Location: The daily assessments will cover cargoes of imported
thermal coal delivered on a cost and freight (CFR) basis to the west coast
Indian ports of Kandla, Mumbai, Mormugao, Mundra, New Mangalore,
Navlakhi and Pipavav and normalize relevant deal, bid and offer information
to Mundra Port using freight differentials and to the east coast Indian ports of
Chennai, Ennore, Gangavaram, Haldia, Karaikal, Krishnapatnam, Paradip and
Vizag and normalize relevant deal, bid and offer information to Paradip Port
using freight differentials.
Timing: The assessments reflect the price for coal delivered at Indian ports within
the next 90-day (three-month) period. The prompt month of the 90-day forward period
moves forward as of the 8th of each month, or the closest forward business day.
For instance, the three months of the 90-day window on September 1 will be
September, October and November but as of September 8 will become October,
November and December.
Assessment Time: The daily assessments are derived from firm trades, bids and
offers prevailing at market close at 5 pm London time. No trades or firm bids or
offers are considered for the assessment process after that time. Platts market
reporters will only assess coal based on demonstrable and verifiable data.
Assessment Process: Confirmed trades are given preference when making the
assessment. In the absence of trading, Platts uses firm bids and offers available in
the market. In addition, only bids and offers that are raised or lowered in realistic
increments are considered. In the absence of firm bids and offers, Platts may
consider other relevant market indicators including related markets, such as index-
linked business, freight costs, supply-demand constraints and related factors when
making an assessment.
protect the quality of its assessments by verifying data and removing any sourcing
of distorting information.
market participants to ensure its assessment accurately reflects current market
values. These market participants may include utility companies, traders, coal
producers and broking houses.
Platts gathers information including electronic trading data from many
sources, but the information must be verifiable for it to be considered in the
assessment process.
Normalization:
Platts CFR India East and West (6,300 kcal/kg GAR): Price assessments for
imported South African thermal coal will be normalized back to a standard
calorific value of 6,300 kcal/kg GAR basis. Thermal coal deliveries from other
destinations meeting the specifications may also be taken into account for
the assessments.
Platts CFR India East and West (5,900 kcal/kg GAR, 5,000 kcal/kg GAR): Price
assessments for imported Indonesian thermal coal will be normalized back to
a standard calorific value of 5,900 kcal/kg GAR and 5,000 kcal/kg GAR basis
respectively. Thermal coal deliveries from other destinations meeting the
specifications may also be taken into account for the assessments.
Unit: All prices are quoted in US dollars per metric ton ($/mt) to two decimal places.
Contact: For comments, feedback or questions please
email james_oconnell@platts.com
5. PLATTS DAILY 30-60 DAY CFR INDIA
Platts launched the assessments on October 15, 2013, and publishes a daily 30-60
day forward price assessment for thermal coal with a calorific value of 3,800 kcal/
kg gross-as-received and 4,200 kcal/kg gross-as-received on delivered basis to India
Cost and freight (CFR) to both east and west coasts of India.
Price Assessment: The assessment in US dollars per metric ton reflects the
commercial value of coals sold in the spot market on a delivered basis to any port in
India in the next 30-60 days from the date of publication.
Specifications: The standard specification for the assessment, named CFR India
East 3,800 and CFR India West 3,800 will be as follows: Standard geared and
grabbed Supramax shipment of 50,000 mt, a standard calorific value of 3,800 kcal/
kg on a gross-as-received basis with total sulfur content of 0.30% as received,
typical ash of 6% as received and typical total moisture of 39% as received.
Platts will consider as relevant to the assessment process coals in a range of
3,600 - 4,000 kcal/kg GAR coal with standard specifications, sulfur up to 0.6%, ash
content up to 8% and total moisture up to 41% and will normalize to the standard
specification. Platts will also consider Ultramax geared and grabbed vessels of up
to 60,000 mt and normalize to the standard Supramax specification.
Specifications: The standard specification for the assessment, named CFR India
East 4,200 and CFR India West 4,200, will be as follows: A standard gearless
Panamax shipment, a standard calorific value of 4,200 kcal/kg on a gross-as-
received basis with total sulfur content of 0.60% as received, typical ash of 7% as
received and typical total moisture of 35% as received.
Platts will consider as relevant to the assessment process coals in a range of 4,000
- 4,400 kcal/kg GAR, sulfur up to 1.00%, ash content up to 10% and total moisture
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up to 40% and will normalize to the standard specification. Platts will also consider
vessel size of up to 80,000 mt Post Panamax shipments and will normalize to the
standard Panamax specification.
For CFR India 3,800 and 4,200, Platts will take into consideration cargoes
discharged on both east and west coasts of India (Mangalore, Tuticorin, Kakinada,
Paradip, Kandla, Gangavaram, Visakhapatnam, Krishnapatnam, Muldwarka,
Bhavnagar, Pipavav, Goa, Haldia, Magdalla, Hazira, Dahej, Mundra, Bedi, and
Navlakhi) and the assessments will be normalized to Krishnapatnam Port on
the east coast and Kandla Port on the west coast. The loadports considered
for evaluation purposes will be terminals in East Kalimantan and South
Kalimantan provinces (Samarinda, Balikpapan, Banjarmasin, Taboneo, Tanjung
Pemancingan, Muara Satui and the Indonesia Bulk Terminal) and for freight
purposes the assessment will be normalized to Banjarmasin.
Availability: CFR India East 3,800 kcal/kg GAR, CFR India West 3,800 kcal/kg GAR,
CFR India East 4,200 kcal/kg GAR and CFR India West 4,200 kcal/kg GAR thermal
coal price assessment will be published daily in Platts Coal Trader International,
and on Platts European Power Alert (pages EP 0910) and the assessments will be
available via Market Data in the Coal International (CI) category.
Volume: The cargo size for consideration is a minimum of 50,000 mt with a
minimum load rate of 8,000 mt per day for CFR India 3,800 kcal/kg GAR East
and West prices, while for CFR India 4,200 kcal/kg GAR East and West prices
a minimum 60,000 mt with a minimum load rate of 8,000 mt per day will be
considered. All other sizes including split and part cargoes will be normalized to
these volumes. All payment terms will be normalized to cash or at sight basis.
Timing: The assessments reflect the price of coal discharging between 30-60 days
forward from the date of publication. For instance, on June 1, Platts would assess
cargoes for discharging between June 30 and July 30. The assessment reflects the
midpoint of the discharging period. Cargoes traded with more prompt or further
forward laycans are normalized to the middle of the month for assessment purposes.
Assessment Time: Platts thermal coal assessments reflect the transactable
value prevailing at 17:30 Singapore local time. The assessment methodology
reflects values on a market on close basis. Trading activity, including bids/offers
and transactions, is covered during the typical operating day with data cut off for
inclusion in the assessment precisely at 17:30 Singapore local time.
Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal
places.
PLATTS DAILY RICHARDS BAY-INDIA FREIGHT ASSESSMENTS
Platts publishes daily freight assessments for thermal coal shipped from Richards
Bay to the East and West Coasts of India.
Route: South Africa-India
Port to Port:
Richards Bay-East Coast India (Chennai, Ennore, Gangavaram, Haldia, Karaikal,
Krishnapatnam, Paradip and Vizag and normalize relevant deal, bid and offer
information to Paradip Port using freight differentials).
Richards Bay-West Coast India (Kandla, Mumbai, Mormugao, Mundra, New
Mangalore, Navlakhi and Pipavav and normalize relevant deal, bid and offer
information to Mundra Port using freight differentials).
Vessel Class: Standard panamax.
Timing: Platts assesses spot market freight costs for vessels delivered CFR
India within the next 90-day (three month) period. The prompt month of the
90-day period moves forward as of the 8th of each month, or the closest
forward business day.
Assessment Time: Daily assessments are at market close at 5 pm London time.
PLATTS DAILY KALIMANTAN-INDIA FREIGHT ASSESSMENTS
Platts publishes daily freight assessments for thermal coal shipped from
Kalimantan/Indonesia to the East and West Coasts of India.
Route: Indonesia-India
Port to Port:
Kalimantan-East Coast India (Chennai, Ennore, Gangavaram, Haldia, Karaikal,
Krishnapatnam, Paradip and Vizag and normalize relevant deal, bid and offer
information to Paradip Port using freight differentials).
Kalimantan-West Coast India (Kandla, Mumbai, Mormugao, Mundra, New
Mangalore, Navlakhi and Pipavav and normalize relevant deal, bid and offer
information to Mundra Port using freight differentials).
Vessel Class: Standard panamax.
Timing: Platts assesses spot market freight costs for vessels delivered CFR India
within the next 90-day (three month) period. The prompt month of the 90-day period
moves forward as of the 8th of each month, or the closest forward business day.
Assessment Time: Daily assessments are at market close at 5 pm London time.
6. PLATTS FORWARD CURVE COAL
Background
Platts has reported on the petroleum industry for nearly 100 years, becoming the
industry benchmark for accurate market information, pricing and analysis. Over
the last 30 years, Platts has introduced reporting, pricing and analysis on the coal,
metals, natural gas and electricity industries, bringing our expertise to creation of
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APRIL 2014
market benchmarks for those fields. Platts Petroleum Derivatives (PPD) were set up
in April 2000 to bring the same skills of independent reporting to market coverage
of crude oil and oil product derivatives. In April 2001, Platts Forward Curve-Oil
was set up to expand and globalize the coverage. In June 2006, Platts Forward
Curve-Freight was added to bring independent assessment to the Forward Freight
Agreement market, focusing on major routes for clean and dirty tankers plus two
major steam coal dry bulk routes. Platts has applied the same skills and rigor to the
coal derivatives market to create Platts Forward Curve-Coal.
Whereas the derivatives market used to have a reputation as an exotic adjunct
to mainstream trading, it is now an accepted risk management tool, used by
market participants across the energy industry. The number of participants and the
sophistication of commodity derivatives have risen commensurately, both in over-
the-counter swaps and in exchange-traded futures and options.
Platts Forward Curve-Coal has been carefully structured to provide independent
assessments of key contracts and spreads traded in coal derivatives markets, as
well as in-depth market commentary on why prices are moving in active markets.
Core objectives
To determine a transactable market price for each forward product assessed
To bring similar approaches to assessing physical and swaps markets
To enhance assessment accuracy
To integrate coal spot and swaps information flows, reflecting integrated
industry trading activity
To track paper positions and prices relevant to spot coal price activity
Specifications
Platts Forward Curve-Coal assesses the prevailing forward prices for three
standardized coal contracts in Europe and Asia. The contracts are:
a CIF ARA (Rotterdam) contract based on 6,000 kcal/kg, net as received.
an FOB Richards Bay, South Africa contract based on
6,000 kcal/kg net as received.
an FOB Newcastle, Australia contract based on a 6,300 kcal/kg gross as
received (equivalent to 6,080 NAR).
Prices are expressed as US dollars per metric ton. Prices are assessed for the
forward two months, four quarters and three years. The months roll forward on
the 1st day of each month or the nearest business day thereafter; the quarters
roll forward on the first day of the calendar quarter or the nearest business
day thereafter, and the forward years on January 1 or the nearest business day
thereafter. So as of January 1, Platts will assess the two forward months of
February and March. As of January 1, the four forward quarters will be Q2, Q3 and
Q4 of the current year and Q1 of the next year. As of January 1, the three forward
years will be the next three calendar years.
Prices are buy/sell assessments with a midpoint, reflecting the product value at
market closing at 5 pm London time daily. Transactions done after closing time are
disregarded.
Standards for derivatives reporting
Platts Forward Curve assessments represent a market-on-close value, include actual
transactions, where discoverable, and bids/offers each day.
Our assessments are not model-generated numbers. These assessments are arrived
at through communication with a wide cross-section of each market. Platts tracks
values and relationships among paper and physical commodities through the course
of the day. Information is cross-checked to ensure data integrity.
When producing these assessments, Platts takes into account the views of
all market participants: swap sellers/buyers, market makers and brokers. The
assessments are designed to reflect actual business, and prominence is given to
confirmed trades and indications when producing an assessment.
Platts believes that every commodity has a tradable value, and endeavors to
produce an indication for a price at which a commodity could trade, even if for any
given day it has not done so. These are arrived at through considering bids and
offers, from all participants, as well as indirectly from timing spreads and trading
patterns in related markets. Illiquid markets may be assessed relative to active
benchmarks and still reflect market end-of-day values.
Platts only accepts information from sources considered credible. New market
participants are carefully evaluated. Information that cannot be verified may be
disregarded for assessment purposes.
Platts assessments help bring transparency to the markets. Platts is completely
independent of the markets it covers, and does not produce its assessments in
alliance or partnership with any market participant.
What Platts subscribers do with the information provided is entirely at their own
discretion, and Platts accepts no liability for the results of their use. Assessments
are provided for information purposes, and should not be construed as a solicitation
or offer to buy or sell any commodity, security or related financial instrument.
7. PLATTS DAILY FOB NEWCASTLE 5,500
THERMAL COAL ASSESSMENT
Platts launched the assessment on January 3, 2012, and publishes a daily 7-45 day
forward price assessment for thermal coal with a calorific value of 5,500 kcal/kg
net-as-received Free on Board Newcastle, New South Wales, Australia.
Price Assessment: The assessment in US dollars per metric ton will reflect the
commercial value of coals sold in the spot market on a FOB basis Newcastle,
Australia loading 7-45 days from date of publication.
Specifications: The standard specification for the assessment, named Newcastle
5500, will be as follows: a standard calorific value of 5,500 kcal/kg on an NAR
basis with total sulfur content of 0.65% as received, typical ash of 20% on an air
dried basis and typical total moisture of 10%.
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APRIL 2014
Platts will consider as relevant to the assessment process coals of a merchantable
quality in a range of 5,300 - 5,700 kcal/kg NAR, sulfur up to 1.00%, ash content
17-23% and moisture to a maximum of 15% and will normalize to the standard
specifications.
Ash Differential: As part of this normalization process, as of August 15, 2012,
Platts will publish a differential, expressed in both a percentage and a $/mt
value, for each 1 percentage point of ash within the standard 17-23% range.
This differential will be checked regularly and adjusted as needed as part of the
standard daily assessment process to maintain its reflection of market values. This
differential is published with the assessment in Coal Trader International.
Availability: The FOB Newcastle 5,500 kcal/kg NAR thermal coal price assessment
will be published daily in Platts Coal Trader International, and on Platts real-time
news service Platts European Power Alert (pages EP 0910) and the assessments
will be available via Market Data in the Coal International (CI) category.
Volume: The assessment will reflect cargoes of 75,000 mt. All shipment volumes,
including standard or typical split and part-sized cargoes, will be normalized to a
typical Panamax type vessel of 75,000 mt.
Timing: The assessments reflect the price of coal loading FOB Newcastle 7-45
days forward from the date of publication. For example, on January 2, Platts
assesses cargoes for loading between January 9 and February 15.
The assessment reflects the mid-point of the loading period. Cargoes traded with
more prompt or further forward laycans are normalized to the middle of the period
for assessment purposes.
Assessment Time: Platts thermal coal and ash differential assessments
reflect the transactable value prevailing at 17:30 Singapore local time. The
assessment methodology reflects values on a market on close basis. Trading
activity, including bids/offers and transactions, is covered during the typical
operating day with data cut off for inclusion in the assessment precisely at
17:30 Singapore local time.
Assessment Process: Firm bids and offer, plus confirmed and verifiable
transactions that meet Platts editorial guidelines are given preference during
the assessment process. Bids and offers should be increased or decreased
in realistic increments for inclusion in the assessment process. Platts may
consider reported transactions, bids and offers as well as demand/supply
fundamentals in the FOB Newcastle 5,500 kcal/kg market as well as daily
Asia-Pacific price movements in associated thermal coal markets, freight costs,
supply-demand constraints, the forward swaps market and related factors
when making an assessment.
All market activity is viewed in light of its market relevance, repeatability and
transparency. Transactions between related parties or transactions that do not meet
Platts standards for transparency, verifiability and repeatability are typically not
taken into account.
Assessments reflect market value for the specified loading window after taking
into consideration the differences in prices prevailing along the time curve. Platts
assessments take into account any time value of a backwardated or contango
market structure.
Transactions that are negotiated within the framework of longer-term contractual
arrangements (term contracts and deals) are typically excluded from the assessment
process.
Platts objective is to reflect the transactable value of the commodity assessed. In
cases where the apparent value of the commodity includes additional optionalities,
the intrinsic value-in-use of the commodity may be masked.
Bids, offers or deals that contain excessive optionality for either the buyer or
seller may also be disregarded in the assessment process. Examples include
loading or delivery options held by the buyer or seller, volume tolerances
exercisable by the buyer or seller, non-standard credit terms, or non-standard
quality specifications.
protect the quality of its assessments by verifying data.
Platts editors will contact the widest range and largest possible number of market
participants to ensure its assessment accurately reflect current market values.
These market professionals may include utility companies, traders, coal producers,
broking houses and other active spot market participants.
Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places.
4,200 THERMAL COAL ASSESSMENT
Platts launched on July 11, 2012, and publishes a daily 7-45 day forward price
assessment for thermal coal with a calorific value of 4,200 kcal/kg gross-as-
received Free on Board Kalimantan, Indonesia.
commercial value of coals sold in the spot market on an FOB basis Kalimantan,
Indonesia, loading 7-45 days from the date of publication.
Specifications: The standard specification for the assessment, named Kalimantan
4,200, will be as follows: a standard calorific value of 4,200 kcal/kg on a GAR basis
with total sulfur content of 0.60% as received, typical ash of 7% as received and
typical total moisture of 35% as received.
- 4,400 kcal/kg GAR, sulfur up to 1.00%, ash content up to 10% and total moisture
up to 40% and will normalize to the standard specification.
For FOB Kalimantan, Platts will take into consideration cargoes loading at the
terminals in East Kalimantan and South Kalimantan provinces (Samarinda,
Balikpapan, Banjarmasin,
Taboneo, Tanjung Pemancingan, Muara Satui and the Indonesia Bulk Terminal) and
for freight purposes the assessment will be normalized to Banjarmasin.
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APRIL 2014
Availability: The FOB Kalimantan 4,200 kcal/kg GAR thermal coal price
assessment will be published daily in Platts Coal Trader International, and
on Platts European Power Alert (pages EP 0910) and the assessments will
be available via Market Data in the Coal International (CI) category.
minimum load rate of 8,000 mt per day. All other sizes including split and part
cargoes will be normalized to this volume. All payment terms will be normalized to
cash or at sight basis.
Timing: The assessments reflect the price of coal loading FOB Kalimantan 7-45
days forward from the date of publication. For instance, on June 1, Platts would
assess cargoes for loading between June 7 and July 15. The assessment reflects the
midpoint of the loading period. Cargoes traded with more prompt or further forward
laycans are normalized to the middle of the month for assessment purposes.
3,800 THERMAL COAL ASSESSMENT
Platts launched on April 1, 2013, and publishes a daily 7-45 day forward price
received Free on Board Kalimantan, Indonesia.
commercial value of coals sold in the spot market on an FOB basis Kalimantan,
Indonesia, loading 7-45 days from the date of publication.
Specifications: The standard specification for the assessment, named Kalimantan
3,800, will be as follows: a standard calorific value of 3,800 kcal/kg on a GAR basis
with typical total sulfur content of 0.30% as received, typical ash of 6% as received
and typical total moisture of 38% as received.
4,000 kcal/kg GAR, sulfur up to 0.60%, ash content up to 9% and total moisture
up to 41% and will normalize to the standard specification.
For FOB Kalimantan, Platts will take into consideration cargoes loading at the
terminals in East Kalimantan and South Kalimantan provinces (Samarinda, Balikpapan,
Banjarmasin, Taboneo, Tanjung Pemancingan, Muara Satui and the Indonesia Bulk
Terminal) and for freight purposes the assessment will be normalized to Banjarmasin.
Availability: The FOB Kalimantan 3,800 kcal/kg GAR thermal coal price
assessment will be published daily in Platts Coal Trader International, and on Platts
European Power Alert (pages EP 0910) and the assessments will be available via
Market Data in the Coal International (CI) category.
minimum load rate of 8,000 mt per day. All other sizes including split and part
cargoes will be normalized to this volume. All payment terms will be normalized to
cash or at sight basis.
Timing: The assessments reflect the price of coal loading FOB Kalimantan
7-45 days forward from the date of publication. For instance, on June 1,
Platts would assess cargoes for loading between June 7 and July 15. The
assessment reflects the midpoint of the loading period. Cargoes traded with
more prompt or further forward laycans are normalized to the middle of the
month for assessment purposes.
places.
10. PLATTS DAILY FOB US EAST COAST
Platts launched on October 1, 2012, and publishes a daily 14-45 day forward price
assessment for thermal coal with a calorific value of 6,500 kcal/kg net-as-received
Free on Board US East Coast.
commercial value of Eastern bituminous coals (mined east of the Mississippi River)
sold in the spot market on an FOB basis US East Coast, loading 14-45 days from the
date of publication.
Specifications: The standard specification for the assessment, named FOB US
East Coast Thermal Coal, is as follows: a standard calorific value of 6,500 kcal/kg
on a NAR basis with total sulfur content of 1% as received and typical ash of 12%
as received.
Platts considers as relevant to the assessment process coals in a range of 6,300 -
6,700 kcal/kg NAR, sulfur up to 3% and ash content up to 16%, and normalizes to
the standard specification.
For FOB US East Coast Thermal Coal, Platts takes into consideration cargoes
loading at terminals from Baltimore, Maryland, to Hampton Roads, Virginia, and for
freight purposes the assessment are normalized to Hampton Roads.
Availability: The FOB US East Coast Thermal Coal assessment is published daily
in Platts Coal Trader and Coal Trader International (on a delayed basis), on Platts
Electricity Alert and Platts European Power Alert, and via Platts Market Data.
Volume: The assessment reflects cargoes of 75,000 mt. All shipment volumes,
including standard or typical split and part-sized cargoes, are normalized to a typical
Panamax type vessel of 75,000 mt.
Timing: The assessment reflects the price of coal loading FOB US East Coast
Thermal Coal 14-45 days forward from the date of publication. For instance, on
June 1, Platts assesses cargoes for loading between June 14 and July 15. The
assessment reflects the midpoint of the loading period. Cargoes traded with more
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APRIL 2014
prompt or further forward laycans are normalized to the middle of the month for
assessment purposes.
value prevailing at 4 pm US Eastern Prevailing time. The assessment methodology
inclusion in the assessment precisely at 4 pm US Eastern Prevailing time.
places.
EASTERN THERMAL COAL ASSESSMENT
Free on Board US Gulf Coast.
commercial value of Eastern bituminous coals (mined east of the Mississippi River)
sold in the spot market on an FOB basis US Gulf Coast, loading 14-45 days from the
Gulf Coast Eastern Thermal Coal, is as follows: a standard calorific value of 6,000
kcal/kg on a NAR basis with total sulfur content of 3% as received and typical ash
of 12% as received.
6,200 kcal/kg NAR, sulfur up to 5% and ash content up to 16%, and normalizes to
the standard specification.
For FOB US Gulf Coast Eastern Thermal Coal, Platts considers cargoes loading
at terminals from New Orleans, Louisiana, to Mobile, Alabama, and for freight
purposes the assessment is normalized to New Orleans.
Availability: The FOB US Gulf Coast Eastern Thermal Coal assessment is published
daily in Platts Coal Trader and Coal Trader International (on a delayed basis), on
Platts Electricity Alert and Platts European Power Alert, and via Platts Market Data.
Timing: The assessment reflects the price of coal loading FOB US Gulf Coast
Eastern Thermal Coal 14-45 days forward from the date of publication. For instance,
on June 1, Platts assesses cargoes for loading between June 14 and July 15. The
places.
WESTERN THERMAL COAL ASSESSMENT
received Free on Board US Gulf Coast.
commercial value of Western sub-bituminous coals (mined west of the Mississippi
River, primarily from the Powder River Basin) sold in the spot market on an FOB
basis US Gulf Coast, loading 14-45 days from the date of publication.
Gulf Coast Western Thermal Coal, is as follows: a standard calorific value of 5,000
kcal/kg on a GAR basis with total sulfur content of less than 0.5% as received,
typical ash of 5.5% as received and typical total moisture of 27% as received.
5,200 kcal/kg GAR, sulfur up to 1%, ash content up to 10% and total moisture up to
30%, and normalizes to the standard specification.
For FOB US Gulf Coast Western Thermal Coal, Platts takes into consideration
cargoes loading at terminals from New Orleans, Louisiana, to Houston, Texas and
for freight purposes the assessment is normalized to Houston, Texas.
Availability: The FOB US Gulf Coast Western Thermal Coal assessment is
published daily in Platts Coal Trader and Coal Trader International (on a delayed
basis), on Platts Electricity Alert and Platts European Power Alert, and via Platts
Market Data.
Timing: The assessment reflects the price of coal loading FOB US Gulf Coast
Western Thermal Coal 14-45 days forward from the date of publication. For
instance, on June 1, Platts assesses cargoes for loading between June 14 and July
15. The assessment reflects the midpoint of the loading period. Cargoes traded with
more prompt or further forward laycans are normalized to the middle of the month
places.
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APRIL 2014
13. PLATTS DAILY FOB CANADA/US WEST COAST
received Free on Board Canada/US West Coast.
commercial value of Western sub-bituminous coals (mined west of the Mississippi
River, primarily from the Powder River Basin) sold in the spot market on an FOB
basis Canada West Coast or US West Coast, loading 14-45 days from the date of
publication.
Specifications: The standard specification for the assessment, named FOB
Canada/US West Coast Thermal Coal, is as follows: a standard calorific value
of 5,000 kcal/kg on a GAR basis with total sulfur content of less than 0.5% as
received, typical ash of 5.5% as received and typical total moisture of 27% as
received.
5,200 kcal/kg GAR, sulfur up to 1%, ash content up to 10% and total moisture up to
30%, and normalizes to the standard specification.
For FOB Canada/US West Coast Thermal Coal, Platts takes into consideration
cargoes loading at terminals from Ridley, British Columbia to Los Angeles,
California and for freight purposes the assessment is normalized to Vancouver,
British Columbia.
Availability: The FOB Canada/US West Coast Thermal Coal assessment is
published daily in Platts Coal Trader and Coal Trader International (on a delayed
basis), on Platts Electricity Alert and Platts European Power Alert, and via Platts
Market Data.
Timing: The assessment reflects the price of coal loading FOB Canada/US West
Coast Thermal Coal 14-45 days forward from the date of publication. For instance,
on June 1, Platts assesses cargoes for loading between June 14 and July 15. The
places.
14. PLATTS INTERNATIONAL DAILY PHYSICAL
Platts publishes forward price assessments every UK business day for thermal coal
on a CIF Antwerp-Rotterdam-Amsterdam (ARA) basis, an FOB Richards Bay coal
terminal, South Africa basis and an FOB Newcastle, Australia basis.
Price assessments: The assessments in US dollars per metric ton will reflect the
commercial value of coal sold in the spot market on a CIF ARA 15-60 day forward
delivery window basis from date of publication and FOB Richards Bay and FOB
Newcastle basis, loading on a 7-45 day forward basis from date of publication.
Specifications: The standard specifications for the assessments will be as
follows:
CIF ARA: a standard calorific value of 6,000 kcal/kg on a net-as-received basis with
maximum sulfur content of 1% as received and maximum ash of 16% as received
from any origin
FOB Richards Bay: a standard calorific value of 6,000 kcal/kg NAR with maximum
sulfur of 1% as received and maximum ash of 16% as received for any destination
FOB Newcastle: a standard calorific value of 6,300 kcal/kg GAR with maximum
sulfur 0.7% as received and maximum ash 13% air dried basis for any destination
Availability: The coal assessments are published daily in Coal Trader International,
and on Platts real-time news service Platts European Power Alert and will be
available via Market Data in the Coal International (CI) category.
Volume: The assessments will reflect cargoes of 50,000 mt. All shipment volumes,
typical cargo of 50,000 mt.
Timing: The assessments reflect the price of coal for delivery 15-60 days
forward from the date of publication (CIF ARA - expected notice of readiness
-NOR - will be taken as the date of arrival), and for loading 7-45 days forward
from the date of publication (FOB Richards Bay, FOB Newcastle). For example,
on January 2, Platts assesses cargoes for delivery between January 17 and
March 2 (CIF ARA) and for loading between January 9 and February 15 (FOB
Richards Bay, FOB Newcastle).
The assessment reflects the mid-point of the delivery/loading period. Cargoes
traded with more prompt or further forward laycans or NOR are normalized to the
middle of the delivery window for assessment purposes.
Assessment Time: Platts thermal coal and ash differential assessments reflect
the transactable value prevailing at 17:00 London local time. The assessment
methodology reflects values on a market on close basis. Trading activity,
including bids/offers and transactions, is covered during the typical operating
day with data cut off for inclusion in the assessment precisely at 17:00 London
local time.
Assessment Process: Firm bids and offers, plus confirmed and verifiable
the assessment process. Bids and offers should be increased or decreased in
realistic increments for inclusion in the assessment process. Platts may consider
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APRIL 2014
reported transactions, bids and offers as well as demand/supply fundamentals
in the CIF ARA, FOB Richards Bay and FOB Newcastle markets as well as daily
price movements in associated thermal coal markets, freight costs, supply-demand
constraints, the forward swaps market and related factors when making an
assessment.
taken into account.
Assessments reflect market value for the specified delivery/loading window after
taking into consideration the differences in prices prevailing along the time curve.
Platts assessments take into account any time value of a backwardated or contango
market structure.
arrangements (term contracts and deals) are typically excluded from the
assessment process.
seller may be disregarded in the assessment process. Examples include loading or
delivery options held by the buyer or seller, volume tolerances exercisable by the
buyer or seller, non-standard credit terms, or non-standard quality specifications.
participants to ensure its assessments accurately reflect current market values.
15. PLATTS DAILY FOB RICHARDS BAY
5,500 THERMAL COAL ASSESSMENTS
Platts launched on June 3, 2013, and publishes a daily 7-45 day forward price
on a Free on Board basis from Richards Bay, KwaZulu-Natal, South Africa.
commercial value of coals sold in the spot market on a FOB basis Richards Bay,
South Africa loading 7-45 days from date of publication.
Specifications: The standard specification for FOB Richards Bay 5,500 kcal/kg
NAR, will be as follows: a standard calorific value of 5,500 kcal/kg on an NAR basis
with total sulfur content of 0.8% as received, typical ash of 20% on an air dried
basis and typical total moisture of 8.5%.
Platts will consider as relevant to the assessment process coals of a merchantable
quality in a range of 5,300 - 5,700 kcal/kg NAR, sulfur up to 1.00%, ash content 17-23%
and moisture to a maximum of 13% and will normalize to the standard specifications.
Basis and Location: The FOB Richards Bay 5,500 kcal/kg NAR price assessment
will cover cargoes of thermal coal loading at Durban Coal Port or Maputo Ports
Matola Coal Terminal and normalized to Richards Bay Coal Terminal, South Africa.
Availability: The FOB Richards Bay 5,500 kcal/kg NAR thermal coal price
assessment will be published daily in Platts Coal Trader International, and on
Platts real-time news service Platts European Power Alert (pages EP 0910) and the
assessments will be available via Market Data in the Coal International (CI) category.
Volume: The assessment will reflect cargoes of 75,000 mt. All shipment volumes,
typical Panamax type vessel of 75,000 mt.
Timing: The assessments reflect the price of coal loading FOB Richards Bay 7-45
days forward from the date of publication. For example, on June 1, Platts assesses
cargoes for loading between June 8 and July 15.
The assessment reflects the mid-point of the loading period. Cargoes traded with
more prompt or further forward laycans are normalized to the middle of the period
Assessment Time: Platts thermal coal assessment reflects the transactable value
prevailing at 17:00 London local time. The assessment methodology reflects values
on a market on close basis. Trading activity, including bids/offers and transactions,
is covered during the typical operating day with data cut off for inclusion in the
assessment precisely at 17:00 London local time.
Assessment Process: Firm bids and offers, plus confirmed and verifiable
the assessment process. In the absence of trading, firm bids and offers will
be considered. Bids and offers should be increased or decreased in realistic
increments for inclusion in the assessment process. Platts may consider reported
transactions, bids and offers as well as demand/supply fundamentals in the FOB
Richards Bay 5,500 kcal/kg NAR market as well as daily Atlantic and Asia-Pacific
constraints, the forward swaps market and related factors when making an
assessment.
All market activity is viewed in light of its market relevance, repeatability and transparency.
Transactions between related parties or transactions that do not meet Platts standards for
transparency, verifiability and repeatability are typically not taken into account.
market structure.
process.
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APRIL 2014
Bids, offers or deals that contain excessive optionality for either the buyer or seller
may also be disregarded in the assessment process. Examples include loading or
participants to ensure its assessment accurately reflect current market values.
16. PLATTS DAILY CFR SOUTH CHINA
Platts launched on March, 1, 2013, and publishes a daily 15-60 day forward price
on a Cost and Freight basis to South China.
Price Assessment: The assessment in US dollars per metric ton, with a Chinese
RMB conversion rate, reflects the transactable value of merchantable thermal coals
sold in the spot market on a CFR South China basis, delivered 15-60 days from the
Specifications: The standard specification for CFR China 5,500 kcal/kg NAR will
be as follows: standard calorific value of 5,500 kcal/kg NAR, with typical sulfur
content of 0.7% as received, typical ash of 17% on an air dried basis and typical
total moisture of 12% and volatile matter of 35%.Platts will consider as relevant
to the assessment process coals in a range of 5,300 - 5,700 kcal/kg NAR with a
maximum sulfur content of 1% as received, maximum ash on a net-as-received
basis of up to 23%, total moisture to a maximum of 18% on a net as received basis,
volatile matter of up to 45% and will normalize to the standard specifications.
For CFR China, Platts will take into consideration international cargoes of thermal
coal traded on the seaborne market and brought into southern China from countries
including, but not exclusive to Australia, Colombia, Indonesia, Russia and South Africa.
Basis and Location: The CFR China price assessments will cover cargoes of
imported thermal coal delivered to south China ports including Guangzhou,
Fangcheng, Hong Kong, Shanghai, Shenzhen, Xiamen, Zhanjiang and Zhuhai and
normalized to Guangzhou.
Volume: The minimum-sized cargo applicable for price assessment purposes is 40,000
mt All other sizes including split and part cargoes will be normalized to this volume.
Payment terms: Letter of Credit payable at sight, all other terms will be
normalized to this standard.
Assessment Process: Confirmed and verifiable trades that meet Platts editorial
guidelines are given preference during the assessment process. In the absence of
trading, firm bids and offers will be considered. Bids and offers should be increased
or decreased in realistic increments for inclusion in the assessment process. Platts
may consider reported transactions, bids and offers as well as demand/supply
fundamentals in the CFR China 5,500 kcal/kg NAR market as well as daily Asia-Pacific
constraints, the forward swaps market and related factors when making an assessment.
taken into account.
market structure.
process.
Platts objective is to reflect the transactable value of merchantable quality of
the commodity assessed. In cases where the apparent value of the commodity
includes additional optionalities, the intrinsic value-in-use of the commodity may
be masked.
participants to ensure assessments accurately reflect current market values.
places.
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APRIL 2014
17. PLATTS DAILY FOB QINHUANGDAO 5,500 KCAL/KG NAR
Platts launched on March, 1, 2013, and publishes a daily 7-45 day forward price
on a Free on Board (FOB) basis from north China.
Price Assessment: The assessment in Chinese RMB per metric ton, with a US
dollar conversion rate, reflects the commercial value of coals sold in the spot market
on an FOB Qinhuangdao basis, loading 7-45 days from the date of publication.
Specifications: The standard specification for FOB Qinhuangdao 5,500 kcal/kg
NAR will be as follows: standard calorific value of 5,500 kcal/kg NAR with typical
sulfur content of 0.7% as received, typical ash of 12% on an air dried basis, typical
total moisture of 10% and volatile matter of 25%.
- 5,700 kcal/kg NAR with a maximum sulfur content of 1% as received, maximum
ash on a net-as-received basis of up to 14%, total moisture to a maximum of 12%
on a net as received basis, volatile matter of up to 30% and will normalize to the
standard specifications.
Basis and Location: The FOB Qinhuangdao price assessment will cover cargoes of
thermal coal loading at north China ports including Caofeidian, Jingtang, and Tianjin
and normalized to Qinhuangdao.
Volume: The minimum-sized cargo applicable for price assessment purposes is
40,000 mt. All other sizes including split and part cargoes will be normalized to this
volume.
Payment terms: Letter of Credit payable at sight.
Assessment Process: Confirmed and verifiable trades that meet Platts editorial
or decreased in realistic increments for inclusion in the assessment process. Platts
may consider reported transactions, bids and offers as well as demand/supply
fundamentals in the FOB Qinhunagdao 5,500 kcal/kg NAR market as well as daily
Asia-Pacific price movements in associated thermal coal markets, freight costs,
supply-demand constraints, the forward swaps market and related factors when
making an assessment.
taken into account.
market structure.
process.
participants to ensure assessments accurately reflect current market values.
Unit: Prices are to be quoted in Chinese RMB per metric ton (RMB/mt) to two
decimal places.
18. CHINA COAL INDEX - 1 (CCI 1)
5,500 NAR THERMAL COAL ASSESSMENT
Platts and Shanxi Fenwei Energy Consulting Co., LTD, jointly launched two thermal
coal price assessments in China on October 14th, 2013. The new coal assessments
are called China Coal Indexes (CCI 1 and CCI 8.
The CCI 1 Index is published as a daily 7-45 day forward price assessment for
thermal coal with a calorific value of 5,500 kcal/kg net-as-received Free on Board
Qinhuangdao, north China.
Price Assessment: The assessment in Chinese RMB per metric ton, with a
US dollar conversion rate, reflects the commercial value of coals sold in the
spot market on an FOB Qinhuangdao basis, loading 7-45 days from the date of
publication, including Value Added Tax.
Specifications: The standard specification for CCI 1 will be as follows: a standard
calorific value of 5,500 kcal/kg NAR, typical sulfur content of 0.7% as received,
typical ash of 15% on an as received basis, typical total moisture of 10% on a net
as received basis and typical volatile matter of 25% as received.
CCI-1 Index editors will consider as relevant to the assessment process coals in
a range of 5,300 - 5,700 kcal/kg NAR with a maximum sulfur content of 1% as
received, maximum ash on a net-as-received basis of up to 20%, total moisture to a
maximum of 18% on a net as received basis, volatile matter of up to 40% and will
normalize to the standard specifications.
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APRIL 2014
Basis and Location: The CCI-1 Index will take into consideration cargoes of
thermal coal loading at north China ports including but not exclusive to Caofeidian,
Jingtang, and Tianjin and normalized to Qinhuangdao.
volume.
Payment terms: Letter of Credit, cash or cash equivalent payable at sight.
Availability: The CCI 1 index will be published daily in Fenweis Daily Market
Watch and China Coal Weekly and also in Platts Coal Trader International and will
Timing: The CCI 1 Index will reflect the price of coal loading FOB Qinhuangdao 7-45
days forward from the date of publication. For instance, on June 1 cargoes loading
between June 7 and July 15 would be considered. The assessment reflects the
Assessment Time: The CCI 1 Index reflects the transactable value prevailing at
17:30 Beijing local time. The assessment methodology reflects values on a market
on close basis. Trading activity, including bids/offers and transactions, is covered
during the typical operating day with data cut off for inclusion in the assessment
precisely at 17:30 Beijing local time.
Unit: Prices are to be quoted in Chinese RMB per metric ton (RMB/mt) to two
decimal places, including tax at 17%
Assessment Process: Confirmed and verifiable trades that meet CCI 1 guidelines
are given preference during the assessment process. In the absence of trading,
firm bids and offers will be considered. Bids and offers should be increased or
decreased in realistic increments for inclusion in the assessment process. CCI
1 Index editors may consider reported transactions, bids and offers as well as
demand/supply fundamentals in the FOB Qinhuangdao 5,500 kcal/kg NAR market
as well as daily Asia-Pacific price movements in associated thermal coal markets,
freight costs, supply-demand constraints, the forward swaps market and related
factors when making an assessment.
editorial standards for transparency, verifiability and repeatability are typically not
taken into account.
Assessments reflect market value for the specified loading window after taking into
consideration the differences in prices prevailing along the time curve. CCI 1 Index
editors will take into account any time value of a backwardated or contango market
structure.
process.
The objective of the CCI 1 Index is to reflect the transactable value of the
commodity assessed. In cases where the apparent value of the commodity includes
additional optionalities, the intrinsic value-in-use of the commodity may be masked.
seller may also be disregarded in the assessment process. Examples include
loading or delivery options held by the buyer or seller, volume tolerances
exercisable by the buyer or seller, non-standard credit terms, or non-standard
quality specifications.
CCI 1 Index editors frequently cross-check information and may track delivery of
actual cargo shipments. Integrity of the data is critical for market processes and
assessors will protect the quality of the assessments by verifying data.
CCI 1 Index editors will contact the widest range and largest possible number of
market participants to ensure assessments accurately reflect current market values.
CCI 1 Index editors gather information including electronic trading data from
many sources, but the information must be verifiable for it to be considered in the
assessment process.
19. CHINA COAL INDEX 8 (CCI 8)
5,500 NAR THERMAL COAL ASSESSMENT
The CCI 8 Index is published as a daily 15-60 day forward price assessment for
thermal coal with a calorific value of 5,500 kcal/kg net-as-received on a Cost and
Freight to south China.
Price Assessment: The assessment in US dollars per metric ton, with a Chinese
RMB conversion rate, reflects the commercial value of coals sold in the spot market
on a CFR South China basis, delivered 15-60 days from the date of publication,
excluding Value Added Tax.
Specifications: The standard specification for CCI 8 will be as follows: a standard
calorific value of 5,500 kcal/kg NAR, typical sulfur content of 0.7% as received,
typical ash of 20% on an as received basis, typical total moisture of 12% and
typical volatile matter of 25% as received.
CCI 8 Index editors will consider as relevant to the assessment process coals in
a range of 5,300 - 5,700 kcal/kg NAR with a maximum sulfur content of 1% as
received, maximum ash on a net-as-received basis of up to 23%, total moisture to a
maximum of 18% on a net as received basis, maximum volatile matter of 40% and
will normalize to the standard specifications.
Basis and Location: CCI 8 Index editors will take into consideration cargoes of
thermal coal traded on the seaborne market and brought into southern China from
countries including, but not exclusive to Australia, Colombia, Indonesia, Russia
and South Africa and delivered to south China ports including but not exclusive to
Guangzhou, Fangcheng, Shenzhen, Xiamen, Zhanjiang and Zhuhai and normalized to
Guangzhou.
volume.
Payment terms: Letter of Credit, cash or cash equivalent payable at sight.
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APRIL 2014
Availability: The CCI 8 Index will be published daily in Fenweis Daily Market
Watch and China Coal Weekly and also in Platts Coal Trader International, and will
Timing: The CCI 8 index will reflect the price of coal delivered CFR Guangzhou 15-60
days forward from the date of publication. For instance, on June 1 cargoes loading
between June 7 and July 15 would be considered. The assessment reflects the
Assessment Time: The CCI 8 Index reflects the transactable value prevailing at
17:30 Beijing local time. The assessment methodology reflects values on a market
on close basis. Trading activity, including bids/offers and transactions, is covered
during the typical operating day with data cut off for inclusion in the assessment
precisely at 17:30 Beijing local time.
Unit: Prices are to be quoted in US dollars per metric ton ($/mt).
Assessment Process: Confirmed and verifiable trades that meet CCI 8 Index
or decreased in realistic increments for inclusion in the assessment process. CCI
8 Index editors may consider reported transactions, bids and offers as well as
demand/supply fundamentals in the CFR South China 5,500 kcal/kg NAR market
as well as daily Asia-Pacific price movements in associated thermal coal markets,
freight costs, supply-demand constraints, the forward swaps market and related
factors when making an assessment.
editorial standards for transparency, verifiability and repeatability are typically not
taken into account.
Assessments reflect market value for the specified loading window after taking into
consideration the differences in prices prevailing along the time curve. CCI 8 Index
editors will take into account any time value of a backwardated or contango market
structure.
process.
The objective of the CCI 8 Index is to reflect the transactable value of the
commodity assessed. In cases where the apparent value of the commodity includes
additional optionalities, the intrinsic value-in-use of the commodity may be masked.
CCI 8 Index editors frequently cross-check information and may track delivery of
assessors will protect the quality of the assessments by verifying data.
CCI 8 Index editors will contact the widest range and largest possible number of
market participants to ensure assessments accurately reflect current market values.
CCI 8 Index editors gather information including electronic trading data from
many sources, but the information must be verifiable for it to be considered in the
assessment process.
20. PLATTS REGIONAL DAILY FOB BARGE ARA ASSESSMENT
Platts assesses coal on an FOB Barge ARA basis. The assessment is published every
UK business day and reflects coal for delivery in the next 90-day loading period.
Specifications are:
typical energy content of 6,000 kcal/kg net calorific value as received coal.
minimum calorific value of at least 5,800 kcal/kg net as received.
sulfur content of 1% maximum.
Platts assessments reflect firm bids, offers and transactions where the seller has the
obligation to provide a reasonable loading window to the buyer within the contractual
period. The seller has the option to declare the loading facility or discharge vessel for
onward loading to receiving barge/vessel. The buyer has the obligation to ensure its
barge is ready to load in a reasonable and practical time frame with no extra charges
if loading occurs from stockpile or vessel. Terminal loading locations considered in the
assessment process are Amsterdam, Rotterdam or Antwerp. Such loading facilities must
have adequate installations and stocking facilities congruent in the volume of the trade.
Buyer must also have access to barges/vessels congruent with its level of purchasing.
FOB barge parcels are generally traded in lots of 5,000 mt on the spot market and
assessments are normalized to 5,000 mt cargoes.
90-Day Forward Benchmark Physical Steam Coal Pricing
Nation/Region Btu/lb Kcal/kg Sulf.% (max) Ash% (max)
Atlantic Market
Colombia
Bolivar* 11,600 6,450 GAR 0.8 9
10,800 6,000 NAR 0.9 12
Poland
Baltic 11,300 6,300 GAR 0.8 15
Russia
Baltic 11,500 6,400 GAR 1 16
Pacic Market
CIF Japan 10,950 6,080 NAR 1 14
CIF Korea West 10,950 6,080 NAR 1 17
Australia
Gladstone 11,700 6,500 GAR 0.6 12
China
Qinhuangdao 11,200 6,200 GAR 0.8 10
Russia
Pacic 11,300 6,300 GAR 0.4 15
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APRIL 2014
The assessment reflects the price of coal in the next 90-day loading period. From
the 1st-15th of the current month the assessment period includes the current
month, current month +1 and current month +2. From the 16th of the month forward
the assessment period consists of current month +1, current month +2 and current
month +3.
Trading activity, including bids/offers and transactions, is covered during the typical
operating hours of the market with the assessment reflecting market values at 4:30
pm London time.
The market-on-close assessment reflects the tradable value of the commodity at the
given points in time, based on repeatable trades, bids and offers transacted up to 4:30
pm London time, fully confirmed within such time without any subjects. In addition,
only bids and offers that are raised or lowered in realistic increments are considered.
Confirmed trades are given preference when making the assessment. In
the absence of trades, Platts reporters look at firm bids and offers. Finally,
if there are no qualified trades in a product and no firm bids and offers in
the market, Platts looks at spreads against other products or markets.
Performance is paramount with contracts expected to be performed to mutual
satisfaction. Platts regularly cross-checks information and may track delivery of
Platts will protect the quality of its assessments by verifying data and removing any
sourcing of distorting information.
FOB Barge ARA market participants to ensure its assessment accurately reflects
current market values. These market participants may include utility companies,
traders, coal producers and broking houses.
Platts gathers information from many market sources including electronic trading
data, but such information must be verifiable for it to be considered in the
assessment process.
21. PLATTS WEEKLY 90-DAY THERMAL COAL ASSESSMENTS
Platts publishes weekly 90 day forward price assessment for thermal coal with
a calorific value stated and locations listed in the table below. On September 6,
2013 after a period of market consultation Platts amended the FOB Bolivar, 6,300
GAR specification to reflect thermal coal of 6000 NAR FOB Colombia. At the same
time notice was given to discontinue the 6,450* GAR FOB Bolivar assessment by
November 2013.
Availability: Weekly 90-day forward thermal coal price assessment will be
published in Platts Coal Trader International, and on Platts real-time news service
Platts European Power Alert (pages EP 506) and the assessments is available via
Market Data in the Coal International (CI) category.
Volume: The assessments reflect cargoes of 75,000 mt. All shipment volumes,
Basis and Location: Platts normalises deliveries to or from the basis port in the
standard for each location. Platts defines base locations in its price assessments
which act as a pricing basis point, and differentials may be assessed off these
when deals or bids/offers are reported on a different location port basis.
Timing: The assessments reflect the value of coal loading at the basis location
in the next 90-day (three-month) period forward from the date of publication. The
90-day assessment window rolls forward every week. For example, for the price
being assessed on January 1, Platts assesses cargoes for loading from January 1 to
March 31 but as of January 8 it will be from January 8 to April 7. The assessment
reflects the mid-point of the loading period. Cargoes traded with more prompt or
further forward laycans are normalized to the middle of the period for assessment
purposes.
Assessment Time: Platts thermal coal assessments reflect the transactable value
prevailing at 17.00 London local time on the date of publication. The assessment
methodology reflects values on a market on close basis. Trading activity, including
bids/offers and transactions, is covered during the typical operating week with
data cut off for inclusion in the assessment precisely at 17.00 London local time.
Unit price: US dollars per metric ton reflects the commercial value of coals sold
in the spot market loading within 90 days from date of publication. Prices are to be
quoted in US dollars per metric ton ($/mt) to two decimal places.
FOB Colombia 6,000 kcal/kg NAR
Specifications: A standard calorific value of 6,000 kcal/kg with a typical total
sulfur content of 0.75% as received, typical ash of 10% on an as received basis
and typical total moisture of 12%. Platts considers as relevant to the assessment
process coals of a merchantable quality in a range of 5,750 6,100 kcal/kg NAR,
maximum sulfur of 0.9%, maximum ash content of 12% and maximum moisture of
15% and will normalize to the standard specifications.
Basis and Location: The assessment covers cargoes of coal loaded free on
board at the following ports in Colombia: Puerto Bolivar, Puerto Drummond, Puerto
Nuevo, Rio Cordoba, and Carbosan, but is normalized to Bolivar for assessment
purposes.
FOB Poland Baltic 6,300 kcal/kg GAR
Specifications: A standard calorific value of 6,300 kcal/kg Gross As Received with
a typical total sulfur content of 0.7% as received, typical ash of 8% as received and
typical total moisture of 10%. Platts considers relevant to the assessment process
coals of a merchantable quality in the range of 6,200-6,400 kcal/kg GAR, maximum
sulfur of 0.8%, maximum ash content of 16% and maximum total moisture of 14%
and will normalize to the standard specifications.
Basis and Location: The assessment covers cargoes of coal loaded free on board
at the following ports in Poland: Gdansk, Gdynia, Swinoujscie and Szczecin and is
normalized to Szczecin for assessment purposes.
FOB Russia Baltic 6,400 kcal/kg GAR
Specifications: A standard calorific value of 6,400 kcal/kg Gross As Received
with a typical total sulfur content of 0.5% as received, typical ash of 8%
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APRIL 2014
as received and typical total moisture of 10%. Platts considers relevant
to the assessment process coals of a merchantable quality in the range of
6,200-6,500 kcal/kg GAR, maximum sulfur of 1%, maximum ash content of
16% and maximum total moisture of 14% and will normalize to the standard
specifications.
Basis and Location: The assessment covers cargoes of coal loaded free on board
at the following Baltic ports: St Petersburg, Vyborg, Vysotsk, Ust-Luga, Kaliningrad
(Russia), Tallinn (Estonia), Ventspils, Riga, Liepaja (Latvia) and Klaipeda (Lithuania)
and normalized to Ventspils for assessment purposes.
CIF Turkey 6,000 kcal/kg NAR
Specifications: A standard calorific value of 6,000 kcal/kg with a typical total
sulfur content of 0.8% as received, typical ash of 11% on an as received basis
and typical total moisture of 13%. Platts considers as relevant to the assessment
process coals of a merchantable quality in a range of 5,850 6,300 kcal/kg NAR,
sulfur content of 0.5-1%, ash content of 6-15% and moisture of 10-15% and will
normalize to the standard specifications.
Basis and Location: The assessment covers cargoes of coal discharged CIF at
the following ports in Turkey: Colakoglu OVA, ICDAS, Eren Enerji, Isken Enerji
and Akcansa, but is normalized to ICDAS port in the Marmara Sea for assessment
purposes.
FOB Gladstone 6,500 kcal/kg GAR
Specifications: A standard calorific value of 6,500 kcal/kg Gross As
Received with a typical total sulfur content of 0.5% as received, typical ash
of 10% as received, typical total moisture of 8% as received and volatile
matter to a maximum of 30%. Platts considers relevant to the assessment
process coals of a merchantable quality in the range of 6,300-6,700 kcal/kg
GAR, maximum sulfur of 0.6 %, maximum ash content of 12%, maximum total
moisture of 10%, and volatile matter of up to 30% and will normalize to the
standard specifications.
Basis and Location: The assessment covers cargoes of thermal coal loaded free
on board at Gladstone port in the Australian state of Queensland, including from
Barney Point and RG Tanna coal terminals.
FOB Qinhuangdao 6,200 kcal/kg GAR
Specifications: A standard calorific value of 6,200 kcal/kg Gross As
Received with a typical total sulfur content of 0.7% as received, typical
ash of 8% as received, typical total moisture of 10% and volatile matter of
25% as received. Platts considers as relevant to the assessment process
coals of a merchantable quality in a range of 6,100-6,300 kcal/kg GAR,
maximum sulfur of 0.8%, maximum ash of 10%, maximum total moisture
of 12% and volatile matter of up to 30% and will normalize to the standard
specifications.
Basis and Location: The assessment covers cargoes of thermal coal loaded
free on board at ports bordering the Bohai Sea in northeastern China including,
Caofeidian, Jingtang and Tianjin, and is normalized to Qinhuangdao.
FOB Russia Pacific 6,300 kcal/kg GAR
Specifications: A standard calorific value of 6,300 kcal/kg Gross As Received with a
typical total sulfur content of 0.3% as received, typical ash of 8% as received basis, typical
total moisture of 10% and volatile matter of 25% as received. Platts considers as relevant
to the assessment process coals of a merchantable quality in a range of 6,200-6,400 kcal/
kg GAR, maximum sulfur of 0.4%,maximum ash of 15%, maximum total moisture of 14%
and volatile matter of up to 30% and will normalize to the standard specifications.
Basis and Location: The assessment covers cargoes of thermal coal loaded
free on board at the following ports on Russias eastern seaboard on the Pacific
Ocean: Nakhodka, Posyet, Vanino, Vladivostok and Vostochny, and is normalized to
Vostochny for assessment purposes.
CIF Japan 6,080 kcal/kg NAR
Specifications: A standard calorific value of 6,080 kcal/kg Net As Received with
a typical total sulfur content of 0.6% as received, typical ash of 12% as received
and typical total moisture of 10% as received. Platts considers as relevant to the
assessment process coals of a merchantable quality in a range of 5,850-6,250 kcal/kg
NAR, maximum sulfur of 1%, maximum ash of 14%, maximum total moisture of 15%
Basis and Location: The assessment covers cargoes of thermal coal delivered to
discharge terminals in Japan including Nagoya, Onahama, Tokyo and Yokkaichi, and
normalized to Yokkaichi port in central Honshu for assessment purposes.
CIF Korea 6,080 kcal/kg NAR
Specifications: A standard calorific value of 6,080 kcal/kg Net As Received with
a typical total sulfur content of 0.6% as received, typical ash of 14% as received
and typical total moisture of 10% as received. Platts considers as relevant to the
assessment process coals of a merchantable quality in a range of 5,850-6,250 kcal/kg
NAR, maximum sulfur of 1%, maximum ash of 17%, maximum total moisture of 15%
Basis and Location: The assessment covers cargoes of thermal coal delivered to
discharge terminals in the Republic of Korea such as Boryeong, Dangjin, Hadong,
Taean and Youngheung, and normalized to Samcheonpo discharge terminal in
southwestern Korea for assessment purposes.
22. PLATTS DAILY METALLURGICAL COAL ASSESSMENTS
Daily Metallurgical Coal: Detailed information on Platts daily spot price
assessments for hard coking coal FOB Australia, CFR China and CFR India is
available at: http://www.platts.com/IM.Platts.Content/MethodologyReferences/
MethodologySpecs/metcoalmethod.pdf.
23. PLATTS MONTHLY METALLURGICAL COAL ASSESSMENTS
Availability: Platts monthly global metallurgical coal (MetCoal) assessments have
been published since April 2009, superseding quarterly assessments started April
2002 published for the same range of met coal markets.
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APRIL 2014
Methodology: Assessments are published following editorial engagement with
producers, consumers, traders, shippers and other active spot market participants.
Traded and tradable values based on bids and offers are used along with editorial
judgment to arrive at the published price ranges.
Frequency: Assessments are published monthly as of April 2009 prices, based
on spot market information collected from active global market sources by 5 pm
London time on the last Friday of each prior calendar month. Prior to that, Platts
published the assessments quarterly (January, April, July and October), with a
historical data series available for the period of April 2002 to January 2009. (Note
Platts has since March 15, 2010 also published daily assessments CFR China and
FOB Australia and CFR India since July 5, 2010. For more information on these daily
assessments, please visit the following link: http://www.platts.com/IM.Platts.
Content/MethodologyReferences/MethodologySpecs/metcoalmethod.pdf.
Basis and location: Seaborne coking coal FOB Hampton Roads (US) and FOB East Coast
US (blend); FOB West Coast Canada; FOB News South Wales (NSW) and Queensland,
Australia; FOB Poland; FOB Pacific Coast and Baltic Russia; CFR China; FOB South
Africa; FOB Indonesia; FOB Colombia; and FOB Venezuela. Loadings and deliveries from/
to terminals in all major coal ports in these locations are considered for assessment.
Timing: Cargoes traded for delivery within the next 90 days. Term (contract) prices
are not included for assessment.
Quality: All coking coal assessments in the pricing table are for hard coking coal
except as noted for semi-soft coking coal and PCI. Specifications for volatile matter
(Vol., in a range of % content, air dried) and for ash (max %, air dried) and total
sulfur (max %, air dried) represent the range of quality characteristics of available
coals in the region. Quality specifications do not represent any particular grade or
brand of coking coal.
Volume: Standard full shipments of hard coking coal, semi-soft coking coal and
PCI loaded onto Capesize, Panamax and Handymax vessels. Shipments in smaller
vessels than Panamaxes are adjusted to normalize for a Panamax vessel.
Unit: All prices are quoted in US dollars per metric ton ($/mt) including moisture
content. Prices are published as a low-high range of the tradable value on the day
of publication.
Contact: For comments or queries please contact cokingcoal@platts.com.
24. OTHER INDICES AND PRICING DATA
Monthly and Quarterly Averages for Platts 90-Day Forward Benchmark
Assessments: As an indicator of coal market trends, Platts calculates the
mathematical average of its 90-Day Forward Benchmark coal price assessments
during two previous months and three previous quarters. Averages include all
assessments made within the calendar period; the date of assessment is noted in
the column heading of the 90-Day Forward Benchmark Coal Price Assessments.
Before August 2006, the averages were calculated using the ICR publication date,
rather than the day of assessment, as the reference date.
Cross-fuel comparisons, US: Coal Trader editors designed these comparisons
by tracking major flows of coal, as shown in Department of Energy and Federal
Energy Regulatory Commission records, from the Appalachian and Western coal
fields, particularly the heavily traded Central Appalachian barge and rail coals and
the Western Powder River Basin 8,800 spec coals. The three Coal Trader Spark
Spreads were renamed effective December 20, 2010; the underlying specifications
and methodology were not changed. The spark spread named CAPP barge OTC
spark was previously named NYMEX; the spark spread named CAPP rail (CSX) OTC
spark was CSX 1%; and the spark spread named PRB 8,800 OTC spark was PRB
8800. Usage concentrations for coal were matched as closely as possible with
hubs where spot trading in natural gas and electricity are active. The regions of
Cincinnati, Atlanta and Kansas City were chosen for these comparisons
For each region, Coal Trader gives daily price assessments plus a transport adder
and a total coal cost including current sulfur dioxide allowances for these three
coals, expressed in dollars per ton and per MMBtu. Spot costs for natural gas are
provided by Gas Daily. In each region, a typical cost per megawatt-hour is calculated
for a coal plant with a 10,000 Btu/kWh heat rate and for a gas plant with an 8,000
Btu/kWh heat rate. Coal plants are assumed to have nitrogen oxide emission rates
of 0.60 lb/MMBtu with no controls and 0.15 lb/MMBtu with controls. Coal costs are
calculated for hypothetical plants needing no allowances, needing SO2 controls only,
and in the May 1-September 30 ozone season, for plants needing NOx allowances,
with and without NOx controls. Plants in Georgia and Missouri are not currently
subject to the US governments NOx SIP Call program, but hypothetical costs are
calculated for readers information.
The MWh costs, for gas and coal, are compared with the days spot price in the
regions electricity market, as provided by Megawatt Daily. Spark spreads are
shown for coal needing sulfur allowances, coal not needing allowances, and
natural gas in each region. During the ozone season, spark spreads are also
shown for coal-burning units needing NOx allowances, both with and without
NOx control equipment.
Priced for the Cincinnati region are the following: CAPP barge OTC spec coal
(12,000 Btu/lb, 1% sulfur) plus barge transportation, Columbia Gas Transmission,
Appalachia natural gas hub, and Cinergy electricity hub. Priced for the Atlanta
region are: CAPP rail (CSX) OTC coal (12,500 Btu/lb, 1%sulfur), plus rail
transportation, Transcontinental Gas Pipe Line, zone 3 gas hub, and Into Southern
electricity hub. Priced for Kansas City are: PRB 8,800 OTC coal (8,800 Btu/lb,
0.35% sulfur), plus rail transportation, CenterPoint, East gas hub, and Into Entergy
electricity hub.
Daily Snapshot, Coal Trader International: This summarizes the physical and
applicable paper markets, current as of the end of business day preceding the
publication date. Coal prices are Platts assessments. Electricity prices are midpoints
of the UK and German prompt month prices from Platts European Power Daily, and
natural gas prices are midpoints of the prompt month UK and Dutch TTF assessments
from Platts European Gas Daily. Physical freight prices are weekly quotations provided
by Simpson, Spence & Young.
German and UK Dark Spread assessments, Coal Trader International
Dark Spreads
Platts dark spreads are indicative prices giving the average difference between the
cost of coal and the equivalent price of electricity on any given day.
Prices are quoted for the UK and German markets.
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APRIL 2014
Both UK and German dark spreads are based on CIF ARA coal assessments and
equivalent UK and German electricity assessments. For the UK, Platts publishes
dark spreads for two months ahead, two quarters ahead and one season ahead. For
Germany, Platts publishes dark spreads for two months ahead, two quarters ahead and
three calendar years ahead.The source of all coal prices is Coal Trader International.
The source of all power prices is European Power Alert and European Power Daily.
The formula for UK and German dark spreads uses an energy conversion factor of
6.978 (revised from 7.1 with effect from April 1, 2014; converting 1 metric ton of
6,000 kcal/kg NAR coal into MWh) and a fuel efficiency factor (coal) of 35%.
The full formula is as follows: Baseload power price in euro (((coal price in US
dollar exchange rate) energy conversion factor) fuel efficiency factor)
Clean Dark Spreads
Platts clean dark spreads are indicative prices giving the average difference
between the cost of coal and emissions, and the equivalent price of electricity on
any given day.
Prices are quoted for the UK and German markets.
Both UK and German clean dark spreads are based on CIF ARA coal assessments,
equivalent EU emissions allowances assessments, and equivalent UK and German
electricity assessments.
For the UK, Platts publishes clean dark spreads for two months ahead, two
quarters ahead and one season ahead. For Germany, Platts publishes clean
dark spreads for two months ahead, two quarters ahead and three calendar
years ahead.
Effective April 1, 2014, Platts also publishes UK CPS clean dark spreads that
incorporate the cost of the UK governments Carbon Price Support (CPS) levy at the
confirmed rates of GBP9.55/mt from April 1, 2014 to March 31, 2015, GBP18.08/mt
from April 1 2015 to March 31, 2016 and GBP18.00/mt from April 1, 2016 to March
31, 2017. The full formula for CPS clean dark spreads is: Platts UK dark spread in
GBP/MWh at 35% fuel efficiency - (EUA emissions price in euro/mt converted to
GBP + CPS levy in GBP/mt * emissions intensity factor 0.973). Eur/MWh and $/
MWh conversions will be available.
The source of all coal prices is Coal Trader International. The source of all power
and emissions prices is European Power Alert and European Power Daily.
The formula for the UK and German clean dark spreads uses an energy conversion
factor of 6.978 (converting 1 metric ton of 6,000 kcal/kg NAR coal into MWh), a fuel
efficiency factor (coal) of 35% and a carbon intensity factor of 0.973 mtCO2/MWh
(revised from 0.96 with effect from April 1, 2014).
The full formula is as follows: Baseload power price in euro (((coal price in US
dollar exchange rate) energy conversion factor) fuel efficiency factor) (EUA
price in euro x carbon intensity factor)
CIF ARA, Carbon adjusted, Coal Trader International: The CIF ARA Carbon
Adjusted price reflects the price of spot physical thermal coal discharged at the
northern European ports of Amsterdam, Rotterdam and Antwerp factoring in the
added cost of carbon emissions certificates.
The formula for the price is: CIF ARA Prompt month in US dollar + ((EU
Emission Allowance in euro x euro/dollar exchange rate) x 2.194 [tons of
carbon per metric ton of coal])
Virtual Freight, Coal Trader International: The Virtual Freight price reflects an implied
freight differential between the price of spot physical thermal coal discharged at the
northern European ports of Amsterdam, Rotterdam and Antwerp on a CIF basis and
spot thermal coal loaded at Richards Bay, South Africa on an FOB basis.
The formula for the price is: CIF ARA (6,000 kcal/kg NAR) prompt month in
US dollar FOB Richards Bay (6,000 kcal/kg NAR) prompt month in US dollar
Freight Differential, Coal Trader International: The Freight Differential reflects the
spread between the cost of real physical spot Capesize freight for the Richards Bay-
Rotterdam route (as supplied by Simpson, Spence & Young shipbrokers on a weekly
basis) and the Platts Virtual Freight.
The formula for the price is: Freight RB to ARA in US dollar Virtual Freight
in US dollar
Freight indicators: Coal Trader International carries typical spot rates
for coal loadings for key routes worldwide courtesy of Simpson, Spence &
Young, and current vessel ladings courtesy Lalemant and Skaarup Chartering
Corp. All non-Platts freight data is reproduced with the permission of the
data provider.
US emissions prices: Platts publishes daily assessments of US emission allowances
for sulfur dioxide and nitrogen oxide based on its own market surveys in Coal
Trader. Platts also publishes weekly and monthly broker-based indices in Coal
Trader and Coal Outlook. For more information on emissions prices, see Platts
Methodology and Specifications Guide for Emissions.
25. DISCONTINUED PRICING DATA
Coal Industry Markers (CIMs): Following industry consultation, Platts decided
to discontinue the Platts Coal Industry Markers (CIMs) effective October 31,
2010. The CIMs data series was discontinued in the Market Data category
CI, but historical data from January 2005 to October 2010 will remain
available for reference purposes.
Platts had launched the weekly CIMs in January 2005 on a CIF ARA basis,
and on an FOB basis for Richards Bay coal terminal, South Africa, Newcastle,
Australia and Kalimantan (5,900 kcal/kg and 5,000 kcal/k), Indonesia.
The CIMs were calculated weekly by taking the mean of the end-of-trading-
week (typically Friday) prices, close of business (5 pm) London time, as
submitted by industry participants and representing their individual views of
the state of the market. Platts editors then calculated the range of the mean
plus and minus 1.8 times the datas standard deviation After all data was
checked for validity and any data determined to be non-representative had
been discarded, the CIM was then calculated.
At the time of discontinuation of the CIMs, the need for daily pricing had
superseded the relevance of the CIMs and consequently Platts launched daily
90-day forward assessments for all of the aforementioned markets on July 26, 2010
(see Section 3).
21
APRIL 2014
OTC Benchmark Physical Steam Coal Pricing Table
Nation/Area Basis Kcal/kg
Europe ARA CIF NAR 6,000
Richards Bay FOBT NAR 6,000
Newcastle FOBT GAR 6,300
Bolivar FOBT GAR 6,300
Qinhuangdao FOBT GAR 6,200
Barge ARA FOBT NAR 5,800-6,000
PFC-Coal Forward Paper Coal Pricing Table
Basis Kcal/kg Sulfur % max
Atlantic Market
CIF ARA - Europe CIF NAR 6,000 <1%
Richards Bay FOBT NAR 6,000 <1%
Pacic Market
Newcastle FOBT GAR 6,300 0.8%
Coking Coal Pricing Table
Nation/Region Vol. Sulfur% (max) Ash% (max)
United States
Hampton Roads 17-20 0.8 6
23-25 0.7 7
28-32 0.8 7
34-36 1 7
East Coast (Blend) 23-30 1 8
Canada
West Coast 19-24 0.5 9
25-29 0.5 9
(semi-soft) 20-25 0.6 11.5
Australia
NSW 25-28 0.5 9
(semi-soft) 31-37 0.4 9
Queensland 17-22 0.7 9
23-30 0.6 9
31+ 0.7 7
PCI 14 0.5 8.5
Poland
25-31 0.7 7
(semi-soft) 32-37 1 9
Russia
Pacic Coast 17-19 0.6 9
19-21 0.4 9
Baltic 28+ 0.6 9
China
23-30 1 8
30+ 0.8 8
South Africa
PCI 30-35 0.6 10
Indonesia
PCI 36-40 0.5 4
Colombia
PCI 30-35 0.7 8
Venezuela
PCI 30-35 0.8 7
SPECIFICATIONS
Coal Trader International
Daily FOB US Thermal Coal Assessments
(Standard specifications
used as basis for normalizing) Btu/lb Kcal/kg Sulf.% Ash%
FOB US East Coast Thermal Coal 12,168 GAR 6,500 NAR 1 12
FOB US Gulf Coast Eastern Thermal 11,268 GAR 6,000 NAR 3 12
FOB US Gulf Coast Western Thermal 8,997 GAR 5,000 GAR <0.5 5.5
FOB Canada/US West Coast Thermal 8,997 GAR 5,000 GAR <0.5 5.5
Coal Trader and Coal Trader International
Petcoke Spot Price Assessments
Origin Sulfur HGI
US Gulf 6% - 6.5% 40
5% - 6% <50
4% - 5.5% 50
US West Coast 4% 50
Venezuela 4% 45
Editors Note: All petroleum coke prices are quoted in metric tons
Weekly US Price Survey
US Basin Origin/Product Btu/lb SO2 lb Transport
(FOB transport) /MMBtu Mode
Northern Appalachia Pittsburgh Seam 13,000 <3.0 Rail
13,000 4.0 Rail
Upper Ohio River 12,500 6+ Barge
Central Appalachia CAPP barge physical 12,000 1.67 Barge
CAPP rail (CSX) physical 12,500 1.6 CSX
12,500 1.2 CSX
Thacker/Kenova 12,500 1.5 NS
12,500 1.2 NS
Big Sandy/Ohio River 12,000 1.2 Barge
Illinois Basin 11,800 5.0 Rail
11,500 2.5 Rail
11,500 5.0 Barge
11,000 5.0 Barge
10,500 6+ Rail
Powder River Basin 8,800 0.80 Rail
8,400 0.80 Rail
Rocky Mountain Colorado 11,700 0.80 Rail
11,000 0.80 Rail
Utah 11,500 0.80 Rail
22
APRIL 2014
Daily OTC Assessments and OTC Hedge Price Monitor
SO2 Lbs Sulfur
/ MMBtu Percent
Region Transport Btu/lb (max) (max)
Central App.
NYMEX look-alike Barge 12,000 1.67 1.00
CSX (Big Sandy/Kanawha Rail 12,500 1.5 <1.00
Powder River Basin
Wyoming Rail 8,800 0.8 0.35
Rail 8,400 0.8 0.35
Platts OTC Broker Index
SO2 Lbs Sulfur
/ MMBtu Percent
Region Transport Btu/lb (max) (max)
Central App.
CAPP barge physical Barge 12,000 1.67 1.00
CAPP rail (CSX) OTC Rail 12,500 1.6 <1.00
Powder River Basin
Wyoming Rail 8,800 0.8 0.35
Rail 8,400 0.8 0.35
Central App. Spread
12,500 1.5 1.00
12,500 1.2 0.75
SPECIFICATIONS
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METHODOLOGY AND SPECIFICATIONS GUIDE

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