Platts to introduce daily coal price assessments for India
Platts has announced that from 1 September onwards it will include a daily spot value for thermal coal destined for the Indian marketplace. The new price assessments, which include freight rates from South Africa to India’s east and west coasts.
“India’s thermal coal imports have taken the global industry by storm, changing trade flows radically and thereby increasing the need for expanded and more frequent price information,” said James O’Connell, managing editor of Platts’ Coal Trader International. “We’re pleased to help meet the growing information needs of this important import market and bring greater transparency to the commodity’s and region’s pricing.”
India is the third-largest producer of hard coal, but it is also one of the world’s largest importers. South Africa ranks among the world’s top 10 producers and top 10 exporters of coal. Platts’ new assessments capture price dynamics relating to these important marketplaces. The assessments will reflect the open-market physical spot value for standard calorific value of 6,300 kilocalories per kilogram (kcal/kg), gross as received (GAR), thermal coal with a maximum ash content of 16 per cent and 1.4 per cent maximum sulfur content. They will be assessed on a cost and freight (CFR) basis delivered to specific ports on the east and west coasts of India.
Alongside the two new price assessments, known as “Platts CFR India,” Platts will publish two corresponding freight rates, as follows:
a) Platts CFR India East (6,300 kcal/kg): physical open-market spot assessment of thermal coal (including the cost of freight) out of Richards Bay, South Africa and destined within a 90-day period for east coast ports in India
b) Platts CFR India West (6,300 kcal/kg): physical open-market spot assessment of thermal coal (including the cost of freight) out of Richards Bay, South Africa and destined within a 90-day period for west coast ports in India
c) Platts CFR East Coast India Freight Rate: assessments for panamax-sized cargoes from Richards Bay, South Africa, to the ports of Chennai, Ennore, Gangavaram, Haldia, Karaikal, Krishnapatnam, Paradip and Vizag in eastern India
d) Platts CFR West Coast India Freight Rate: assessments for panamax-sized cargoes from Richards Bay, South Africa, to the ports of Kandla, Mumbai, Mormugao, Mundra, New Mangalore, Navlakhi and Pipavav in western India
Assessments are based on all-day market monitoring and data collection of transactions, bids, offers and other information from market participants and reflect values at the close of the physical trading day. Thermal coal deliveries from other destinations meeting the specifications may also be taken into account for the assessment. All prices are quoted as US dollars per metric ton (mt). The assessments will be published in Platts’ Coal Trader International, within Platts’ Dispatch, a flexible-format, end-of-day data service, as well as in the real-time news service Platts’ European Power Alert.
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