[COAL

]

METHODOLOGY AND SPECIFICATIONS GUIDE

Coal
(Latest Update: June 2013)
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: 6. Platts Daily FOB Newcastle 5,500 Thermal Coal Assessment 7 7. Platts Daily FOB Kalimantan 4,200 Thermal Coal Assessment 8 8. PLATTS DAILY FOB KALIMANTAN 3,800 THERMAL COAL ASSESSMENT 8 3 9. Platts Daily FOB US East coast thermal coal assessment 9 10. Platts Daily FOB US Gulf Coast Eastern Thermal Coal Assessment 9 11. Platts Daily FOB US Gulf Coast western Thermal Coal Assessment 9 12. Platts Daily FOB Canada/ US West Coast Thermal Coal Assessment 10 13. Platts INTERNATIONAL DAILY PHYSICAL THERMAL COAL ASSESSMENTS 10 14. Platts daily FOB Richards BAY 5,500 thermal coal assessments 11 15. Platts Daily CFR SOUTH China Thermal Coal Assessment 12 16. Platts Daily FOB Qinhuangdao 5,500 kcal/kg NAR Thermal Coal Assessment 13 17. Platts regional daily FOB barge ARA assessment 18. Platts daily metallurgical coal assessments

3. Platts international 90-day daily forward coal assessments 4 4. Platts daily CFR India thermal coal assessments 4 Platts daily Richards Bay-India freight assessments 5 Platts daily Kalimantan-India freight assessments

14

14

19. Platts monthly metallurgical coal assessments 14 20. Other indices and pricing data
Dark Spreads Clean Dark Spreads

6

15
15 16

5. Platts Forward Curve – Coal 6
Background 6 Core objectives 6 Specifications 6 Standards for derivatives reporting 6

21. Discontinued pricing data

16

Specifications 17
International Coal Report and Coal Trader International 17 Coal Trader and Coal Trader International 17 Coal Outlook and Coal Trader 18

The four assessments cover coals of a limited range of specifications. ■■ Coal Trader’s OTC Broker Index reflect trading in the four standard US OTC coal products. ■■ 1. bid and offers. ■■ JUNE 2013 2 .com. and PRB 8. and other market information are compared and analyzed.35% is the same product as PRB 8.800/0. April becomes the prompt month. defined by Platts as 4 pm Eastern prevailing time for North American coal markets.com. please contact Brian Jordan at brian_jordan@platts.METHODOLOGY AND SPECIFICATIONS GUIDE Coal 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.35% is the same product as PRB 8. CAPP barge physical was previously named NYMEX look-alike. with as much advance notice as possible. CAPP rail (CSX) physical was Big Sandy/Kanawha with the same. the new prompt month begins on the first business day following the 26th. and forward calendar year for selected specifications (see page 11). Coal Trader’s daily FOB US export assessments reflect the transactable value for the spot market on an FOB basis. PRB 8. The rollover date is applied consistently to quarters.000/< 1% is the same product as CAPP barge OTC. in addition to making use of any transactional data or other market information. 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.35%. and the Canadian/US West Coast. CSX 12. For questions regarding North American assessments.000/< 1%. the prompt month is March. Two assessments in the Weekly US Price Survey were renamed effective December 20. Transactions. Platts also has a compliance staff independent of the editorial group. for assessments for trade date February 25. The four Platts Daily OTC Assessments were renamed effective December 20. loading 14-45 days forward from the date of publication. To assess standard products and time periods for which there is little or no trading activity on a given day. unchanged specifications listed in the Weekly Price Survey table and on page 11 of this methodology.500/1% is the same product as CAPP rail (CSX) OTC. the prompt month plus one.400/0.35%.800 OTC was PRB 8. Platts discloses publicly the days of publication of its price assessments and indices. for assessments for trade date February 25. While all available information on trading activity that occurs throughout the day is considered. use current spread relationships among standard products and time periods. The rollover date for Coal Trader’s Daily OTC Assessments is the 26th of the month. PRB 8. power failures. to communicate publicly any changes to its publication schedule and assessment periods. When the 25th falls on a weekend or a holiday.800 OTC. for the prompt month and prompt quarter. Platts’ methodology will continue to evolve as coal markets change. April becomes the prompt month.800/0. the prompt month is March.400/0. On February 26. and other market information are compared and analyzed.800 OTC was PRB 8. plus one spread product. 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. editors. acts of terrorism and other situations that result in an interruption in Platts’ operations at one or more of its worldwide offices. and PRB 8. Platts will endeavor. To assess standard products and time periods for which there is little or no trading activity on a given day. The rollover date for Coal Trader’s OTC Broker Index assessments is the 26th of the month. When the 26th falls on a weekend or a holiday. For example. 2010. While all available information on trading activity that occurs throughout the day is considered. CAPP barge OTC was previously named NYMEX 12. 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. It also includes detailed information on the formation of Platts coal assessments and the specifications for the various products assessed. Asian and other non-North American coal assessments. Such circumstances include network outages. For questions regarding European. 2010. the US Gulf Coast. Coal Outlook’s OTC Hedge Price Monitor gives the Friday-through-Thursday average of the Platts Daily OTC Assessments published in Coal Trader for ■■ The assessments are formulated based on systematic Market on Close practices and reflect market values at the end of the trading day. use current spread relationships among standard products and time periods.) Coal Trader’s OTC Broker Index assessments are formulated based on systematic Market on Close practices and reflect market values at the end of the trading day. For more information. bid and offers. the last business day preceding the 25th becomes the final day for that prompt month. When the 25th falls on a weekend or a holiday. CAPP rail (CSX) OTC was CSX 12. contact Director of Compliance John Burnett. whenever feasible.com). For example. normalized to one standard specification for each assessment. When the 26th falls on a weekend or a holiday. (NYMEX 12. The methodology for the OTC Broker Index is the same as for the Daily OTC Assessments. in addition to making use of any transactional data or other market information. the new prompt month begins on the first business day following the 26th. Platts’ coal publications assess prices in the following formats: ■■ Coal Trader’s Daily OTC Assessments reflect over-the-counter trading in the four standard US OTC coal products for delivery in the prompt month. This update reflects the change in methodology for the US OTC Broker Indexes. please contact James O’Connell at james_oconnell@platts. On February 26. three forward quarters. Transactions. the underlying specifications and methodology were not changed. 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. and the times during each trading day in which Platts considers transactions in determining its assessments and index levels. In the event that any such circumstance occurs. Coal Outlook’s 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.800 OTC. 212-904-6943 (john_burnett@platts. editors. The rollover date is applied consistently to quarters. The underlying specifications and methodology were not changed.500/1%. the last business day preceding the 25th becomes the final day for that prompt month. for export from the US East Coast. defined by Platts as 4 pm Eastern prevailing time for North American coal markets.

and endeavors to produce an indication for a price at which a commodity could trade. market takers and brokers. at day’s 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. 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. 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. closes at 11 am US Eastern time on the final trading day of the week. or the first business day following the final assessment of the previous prompt month. four forward quarters. Coking coal markets are assessed at least monthly. Assessments are determined by considering bids and offers. All coking coal quotes are for hard coking coal except as noted in the table. For all markets. This rollover date is reflected consistently in the assessments of the quarterly and calendar-year packages. and on bids and offers. bids and offers are included where discoverable. When the 25th of the month falls on a weekend or a holiday.) Coal Trader International’s OTC Benchmark Coal Prices. are US$/short ton based on FOB quotes at the rail or barge origin point. which are normalized to the specific standard specifications for each assessment. For PFC-Coal. for two forward months. The weekly averages in the OTC Hedge Price Monitor were renamed effective December 20. assessed weekly. which provide daily prices for physical hard coking coal reflective of three benchmark specifications and two Dry Bulk Freight Assessments. See tables below. International daily physical coal (see section 4. from all participants. current spot prices for the forward 90 days at three terminals. in the case of financially settled transactions. Prices for the US FOB export assessments ■■ ■■ ■■ ■■ ■■ ■■ ■■ ■■ 2. and on January 26 March is assessed for the first time as the prompt month. Specifications: Specifications for physical assessments focus on a few of the most-traded specifications. Specifications in all tables should be considered a composite benchmark of physical characteristics of available coals in the region. and two forward years for three benchmark specifications for the financial (paper) coal markets. Platts Petcoke Assessments. Coal Trader International’s Daily OTC Prices. For the Platts Daily OTC Assessments and the OTC Broker Index assessments. below) have different rollover dates. with the exception of the US FOB export assessments.METHODOLOGY AND SPECIFICATIONS GUIDE Coal delivery in forward quarters and the forward calendar year. brokers. depending on their respective ■■ ■■ ■■ JUNE 2013 3 . For example. The markets in International Coal Report for 90-day forwards are assessed daily and weekly. or secondary deals among consumers. ■■ liquidity. actual transactions. the over-the-counter market. and more active markets are assessed more frequently as market activity merits. 2010 to reflect the name changes in the Platts Daily OTC Assessments. which cover trading in the forward three months and forward quarter for five benchmark specifications for the physical markets. There are no specifications for export coals adopted by the US Coal Trading Association. Effective dates: Prices are those prevailing at the end of the business week preceding the date of publication for Coal Outlook and International Coal Report. since there is a fairly constant relationship among prices for various coal qualities in each region. including sellers. The petcoke market. below) and daily derivatives (see section 3. we focus on the specifications most commonly traded in the swaps market. For PFC-Coal. assessments are based on direct supplierconsumer transactions and third-party transactions. current buy/sell prices and a midpoint. which cover forward trading in the 90-day-ahead coking coal spot market. Coal Trader International’s Metallurgical Coal Assessments. (US FOB export assessments are also published in Coal Trader International on a delayed basis. Platts Forward Curve-Coal is assessed each business day. International Coal Report’s Coking Coal pricing tables. for the specified forward contract. The first assessment of the new prompt month is on the 26th. Frequency: All steam coal and petcoke markets for physical delivery are assessed at least biweekly. assessments are based on swaps traded in Europe and Asia. whether via traders. All prices are current prices for physical delivery in the specified forward period or. Coal quality: Heat and sulfur content are considered the primary determinants of steam coal price. Platts believes every commodity has a tradable value. as well as indirectly from timing spreads and trading patterns in related markets. Prices for daily assessments are those prevailing at the end of the business day’s OTC trading preceding the date of publication of Coal Trader and Coal Trader International. The specifications for the four US FOB export assessments reflect various coals for export. which give daily prices for physical trading in three benchmark specifications for prompt month delivery. The markets in Coal Trader are assessed daily at the end of each business day. ■■ The Platts Daily OTC Assessments published in Coal Trader are marketon-close assessments based on trading through 4 pm US Eastern time. the last day of the prompt-month assessment is the last business day preceding the 25th. They are not intended to represent a particular grade or brand of a given producer. January 25 is the last day February is assessed as the prompt month. buyers. which as noted in section 5 below closes at 4:30 pm London time. International physical and paper assessments close at 5 pm London time. Platts Forward Curve-Coal. Market: For physical delivery. even if on a given day it has not done so. Source basis: For Coal Outlook and Coal Trader: Prices. which cover trading in the spot market for steam coal delivery in the next 90 days from major global shipment and delivery points. ash as a secondary determinant is included in some international tables. and the daily physical markets in Coal Trader International are assessed daily at the end of each business day. ■■ International Coal Report’s and Coal Trader International’s Daily and Weekly 90-Day Forward Benchmark Coal price assessments. 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.

FOB Richards Bay: 6. capable of loading 12. For International Coal Report and Coal Trader International: Prices are in US$/metric ton FOBT (Free On Board Trimmed for vessel balance) at the port of shipment except Europe/ARA and the Japan and Korea West benchmarks which are CIF (delivery freight inclusive). only bids and offers that are raised or lowered in realistic increments are considered. Assessment Time: The daily assessments are derived from firm trades. Platts may consider other relevant market indicators including related markets. 2010 daily 90-day forward price assessments for thermal coal delivered to east coast and west coast Indian ports under the benchmark names Platts CFR India East (6.8%. or closest forward business day. PRB 8.000 kcal/ kg. FOB Kalimantan 1 (5. Price Assessment: Platts publishes the transactable value for thermal coal.7%. Platts gathers information including electronic trading data from many sources.300 kcal/kg GAR). Richards Bay 2%. traders. the three months of the 90-day window on February 7 will be February. FOB Richards Bay and FOB Newcastle 6080 NAR and at 17.800 OTC and PRB 8. CAPP barge OTC is sourced from any dock located on the Ohio River between MP 306 and MP 317 or on the Big Sandy River. Platts’ editors will contact the widest range and largest possible number of relevant market participants to ensure its assessment accurately reflects current market values. Australia basis. ash max 8%. ■■ ■■ Volume: Assessments are normalized to 25.900 kcal/kg GAR and FOB Kalimantan 5. 22%. bids and offers prevailing at market close at 17.000 ton unit trains. ash max 15%. indicating the price at which a cargo could be traded on CFR India basis at the close of the assessment period on the day of publishing.METHODOLOGY AND SPECIFICATIONS GUIDE Coal are US$/metric ton. 16% ash max.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. max sulfur 0.000 to 15. 16% ash max.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. ■■ 3. derived from trades. supply-demand constraints.900 kcal/kg GAR). 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. The prompt month of the 90-day period moves forward as of the 8th of each month. ■■ For instance. No trades or firm bids or offers are considered for the assessment process after that time.900 kcal/kg GAR and 5. Platts frequently cross-checks information and may track delivery of actual cargo shipments.000 kcal/kg GAR. FOB Newcastle: 6. other CIF Europe. such as indexlinked business. 2010: CIF Amsterdam-Rotterdam-Antwerp (ARA) basis. In the absence of trading. and Indonesia (Kalimantan 5. Platts CFR India West (5.000 kcal/kg). The CFR India East and West (6. Platts’ market reporters will only assess coal based on demonstrable and verifiable data. 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. Russia Pacific 3%. Assessments also take into consideration daily Asia-Pacific price movements in associated commodity markets. FOB Richards Bay coal terminal. JUNE 2013 4 . 70%. max sulfur 1%. 3%.000 ton unit trains in four hours or less.000 kcal/kg NAR. the forward swaps market. and FOB Kalimantan 2 (5. Platts daily CFR India thermal coal assessments Platts launched on September 1. China (Qinhuangdao). Timing: The assessments reflect the price of coal delivered or loaded in the next 90-day (three-month) period.900 kcal/kg GAR. FOB barge and related factors when making an assessment.000 kcal/kg GAR) and Platts CFR India West 5.080 kcal/kg NAR (6.000 kcal/kg GAR. Platts CFR India East 5. Platts assessments take into account demand/supply fundamentals in key consumer markets. Specifications: ■■ ■■ ■■ 4. Platts international 90-day daily forward coal assessments Platts increased the frequency for five 90-day forward coal assessments on July 26.900 kcal/kg GAR).000 kcal/kg NAR.30 Singapore time for FOB Kalimantan 5. These market participants may include utility companies. Assessments reflect actual trading at the pricing point.300 kcal/kg GAR.000 kcal/kg GAR). Weightings as of October 2010 are: Australia (Newcastle). CIF ARA: 6. except for Europe/ARA. max sulfur 1%. and South Africa.000 mt cargoes. March and April but as of February 8 will become March. including FOB coal prices for Richards Bay. but the information must be verifiable for it to be considered in the assessment process.00 London time for CIF ARA. Steam coal is quoted on a GAR (Gross As Received) basis. Assessment Process: Confirmed trades are given preference when making the assessment. the Japan CIF assessment only is calculated from a basket of coal prices FOB Japan’s main supplier countries plus a freight and insurance component. South African thermal coal.900 kcal/kg). freight costs. FOB Newcastle. Platts added four additional 90-day forward price points to the India thermal coal assessments portfolio on October 1. and Japan and Korea West CIF.300 kcal/kg GAR) and Platts CFR India West (6. max sulfur 0. 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. Richards Bay 6. which are quoted on a NAR (Net As Received) basis. In the absence of firm bids and offers. Platts uses firm bids and offers available in the market. bids and offers verified in the market. max sulfur 1%. FOB Kalimantan 1: 5. FOB Kalimantan 2: 5. FOB coal prices for Kalimantan and spot freight rates for panamax-sized and supramax-sized vessels on these trade routes to Indian ports. In addition. 2010: Platts CFR India East (5. 5. Source standards for the Platts Daily OTC Assessments are the 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. April and May. 13% ash max.300 kcal/kg GAR). coal producers and broking houses. Wyoming.900 kcal/kg GAR). South Africa basis.

bid and offer information to Paradip Port using freight differentials).000 kcal/kg GAR. Timing: Platts assesses spot market freight costs for vessels delivered CFR India within the next 90-day (three month) period.300 kcal/kg GAR basis. New Mangalore. including end users. feedback or questions please email james_oconnell@platts. 5. 5. 5. Navlakhi and Pipavav and normalize relevant deal. Thermal coal deliveries from other destinations meeting the specifications may also be taken into account for the assessments. November and December. Karaikal. Thermal coal deliveries from other destinations meeting the specifications may also be taken into account for the assessments. Normalization: Platts CFR India East and West (6.900 kcal/kg GAR and 5. Platts may consider other relevant market indicators including related markets. max sulfur 1%. bid and offer information to Paradip Port using freight differentials. In addition. traders. Karaikal. October and November but as of September 8 will become October.300 kcal/kg GAR. or the closest forward business day. Platts’ market reporters will only assess coal based on demonstrable and verifiable data. Mundra. Platts uses firm bids and offers available in the market.000 mt. The prompt month of the 90-day period moves forward as of the 8th of each month. Assessment Time: The daily assessments are derived from firm trades. Ennore. For instance.300 kcal/kg GAR. Specifications: 6.com 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.. Availability: The CFR India East and West (6. or the closest forward business day.000 kcal/kg GAR basis respectively.300 kcal/kg GAR): Price assessments for imported South African thermal coal will be normalized back to a standard calorific value of 6. 16% ash max. Paradip and Vizag and normalize relevant deal. 16% ash max.000 kcal/kg GAR): Price assessments for imported Indonesian thermal coal will be normalized back to a standard calorific value of 5. Ennore. such as indexlinked business. coal producers and broking houses. November and December.METHODOLOGY AND SPECIFICATIONS GUIDE Coal This information will be gathered from credible. Mumbai. The prompt month of the 90-day forward period moves forward as of the 8th of each month.900 kcal/kg GAR. Assessment Process: Confirmed trades are given preference when making the assessment. Unit: All prices are quoted in US dollars per metric ton ($/mt) to two decimal places. total moisture range of 15-17%. October and November but as of September 8 will become October. Paradip and Vizag and normalize relevant deal. total moisture range of 22-25%. Contact: For comments. No trades or firm bids or offers are considered for the assessment process after that time. Mormugao. Gangavaram. only bids and offers that are raised or lowered in realistic increments are considered. Platts’ editors will contact the widest range and largest possible number of relevant market participants to ensure its assessment accurately reflects current market values. Mormugao. max sulfur 1%. Platts CFR India East and West (5. Mumbai. Mundra. and are available via Market Data category CI. Gangavaram. Vessel Class: Standard panamax. Platts gathers information including electronic trading data from many sources. In the absence of trading. 15% ash max. For instance. bid and offer information to Mundra Port using freight differentials). Haldia. 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. Haldia. max sulfur 1%. supply-demand constraints and related factors when making an assessment. Timing: The assessments reflect the price for coal delivered at Indian ports within the next 90-day (three-month) period. Platts frequently cross-checks information and may track delivery of actual cargo shipments. freight costs. Krishnapatnam. the three months of the 90-day window on September 1 will be September. Route: South Africa-India Port to Port: Richards Bay-East Coast India (Chennai. bid and offer information to Mundra Port using freight differentials and to the east coast Indian ports of Chennai. 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.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. 5. These market participants may include utility companies. Volume: The minimum-sized cargo considered relevant for price assessment purposes is 40. traders. suppliers and other relevant parties. Krishnapatnam.. JUNE 2013 5 . the three months of the 90-day window on September 1 will be September. Assessment Time: Daily assessments are at market close at 5 pm London time. New Mangalore. In the absence of firm bids and offers. Navlakhi and Pipavav and normalize relevant deal. Richards Bay-West Coast India (Kandla. active participants involved in the Indian imported coal market. bids and offers prevailing at market close at 5 pm London time.900 kcal/kg GAR. but the information must be verifiable for it to be considered in the assessment process.

Mumbai. New Mangalore. Information is cross-checked to ensure data integrity. Prices are assessed for the forward two months.000 kcal/kg net as received. Timing: Platts assesses spot market freight costs for vessels delivered CFR India within the next 90-day (three month) period. an FOB Newcastle. Australia contract based on a 6. Prices are buy/sell assessments with a midpoint. bid and offer information to Paradip Port using freight differentials). Assessment Time: Daily assessments are at market close at 5 pm London time. The assessments are designed to reflect actual business. When producing these assessments. These assessments are arrived at through communication with a wide cross-section of each market. the quarters roll forward on the first day of the calendar quarter or the nearest business day thereafter. Krishnapatnam. Platts has introduced reporting. or the closest forward business day. In June 2006. used by market participants across the energy industry. ■■ ■■ 5. net as received. Platts has applied the same skills and rigor to the coal derivatives market to create Platts Forward Curve-Coal. pricing and analysis on the coal. bringing our expertise to creation of market benchmarks for those fields. November and December.300 kcal/kg gross as received (equivalent to 6. the four forward quarters will be Q2. Kalimantan-West Coast India (Kandla. Haldia. 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. The months roll forward on the 1st day of each month or the nearest business day thereafter. an FOB Richards Bay.000 kcal/kg. where discoverable. four quarters and three years. As of January 1. 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. Platts Forward Curve-Oil was set up to expand and globalize the coverage. and bids/offers each day. becoming the industry benchmark for accurate market information. Mundra. As of January 1. Ennore. Platts tracks values and relationships among paper and physical commodities through the course of the day. Platts will assess the two forward months of February and March. and prominence is given to confirmed trades and indications when producing an assessment. and the forward years on January 1 or the nearest business day thereafter. Platts Forward Curve-Coal has been carefully structured to provide independent assessments of key contracts and spreads traded in coal derivatives markets. reflecting the product value at market closing at 5 pm London time daily. Our assessments are not model-generated numbers. both in overthe-counter swaps and in exchange-traded futures and options. the three forward years will be the next three calendar years. 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. include actual transactions. Navlakhi and Pipavav and normalize relevant deal. Karaikal. natural gas and electricity industries. Gangavaram. Over the last 30 years. metals. In April 2001. Platts takes into account the views of all market participants: swap sellers/buyers. the three months of the 90-day window on September 1 will be September. For instance. So as of January 1.METHODOLOGY AND SPECIFICATIONS GUIDE Coal 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. Vessel Class: Standard panamax. focusing on major routes for clean and dirty tankers plus two major steam coal dry bulk routes. Q3 and Q4 of the current year and Q1 of the next year. it is now an accepted risk management tool. Standards for derivatives reporting Platts Forward Curve assessments represent a market-on-close value. The contracts are: ■■ a CIF ARA (Rotterdam) contract based on 6.080 NAR). Mormugao. Whereas the derivatives market used to have a reputation as an exotic adjunct to “mainstream” trading. JUNE 2013 6 . as well as in-depth market commentary on why prices are moving in active markets. pricing and analysis. Platts Forward Curve-Freight was added to bring independent assessment to the Forward Freight Agreement market. Prices are expressed as US dollars per metric ton. market makers and brokers. bid and offer information to Mundra Port using freight differentials). Paradip and Vizag and normalize relevant deal. The number of participants and the sophistication of commodity derivatives have risen commensurately. October and November but as of September 8 will become October. The prompt month of the 90-day period moves forward as of the 8th of each month. Route: Indonesia-India Port to Port: Kalimantan-East Coast India (Chennai. South Africa contract based on 6. Transactions done after closing time are disregarded. Platts Forward Curve – Coal Background Platts has reported on the petroleum industry for nearly 100 years.

Trading activity. Platts may consider reported transactions. Ash Differential: As part of this normalization process. The assessment methodology reflects values on a market on close basis.300 . 2012. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the period for assessment purposes. offers or deals that contain excessive optionality for either the buyer or seller may also be disregarded in the assessment process. coal producers. sulfur up to 1.00%.500 kcal/kg net-as-received Free on Board Newcastle. broking houses and other active spot market participants. as well as indirectly from timing spreads and trading patterns in related markets. 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. Platts assessments take into account any time value of a backwardated or contango market structure. and publishes a daily 7-45 day forward price assessment for thermal coal with a calorific value of 5. Bids. These market professionals may include utility companies. 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. and endeavors to produce an indication for a price at which a commodity could trade. Assessment Process: Firm bids and offer. Timing: The assessments reflect the price of coal loading FOB Newcastle 7-45 days forward from the date of publication. Bids and offers should be increased or decreased in realistic increments for inclusion in the assessment process. Platts is completely independent of the markets it covers. even if for any given day it has not done so. Platts’ objective is to reflect the transactable value of the commodity assessed. Platts frequently cross-checks information and may track delivery of actual cargo shipments. Platt’s assessments help bring transparency to the markets. Platts Daily FOB Newcastle 5. or non-standard quality specifications. New South Wales. the intrinsic value-in-use of the commodity may be masked. Information that cannot be verified may be disregarded for assessment purposes.000 mt.500 kcal/kg market as well as daily Asia-Pacific price movements in associated thermal coal markets. plus confirmed and verifiable transactions that meet Platts editorial guidelines are given preference during the assessment process. from all participants. Assessments reflect market value for the specified loading window after taking into consideration the differences in prices prevailing along the time curve. JUNE 2013 7 . bids and offers as well as demand/supply fundamentals in the FOB Newcastle 5. Transactions between related parties or transactions that do not meet Platts’ standards for transparency. security or related financial instrument. and Platts accepts no liability for the results of their use. Platts assesses cargoes for loading between January 9 and February 15. What Platts subscribers do with the information provided is entirely at their own discretion. traders. expressed in both a percentage and a $/mt value. volume tolerances exercisable by the buyer or seller. including bids/offers and transactions. named Newcastle 5500. Transactions that are negotiated within the framework of longer-term contractual arrangements (term contracts and deals) are typically excluded from the assessment process. supply-demand constraints. on January 2. Assessment Time: Platts thermal coal and ash differential assessments reflect the transactable value prevailing at 17:30 Singapore local time.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Platts believes that every commodity has a tradable value. Platts only accepts information from sources considered credible.700 kcal/kg NAR. non-standard credit terms. The assessment reflects the mid-point of the loading period.000 mt. freight costs. New market participants are carefully evaluated. typical ash of 20% on an air dried basis and typical total moisture of 10%. 6. Platts will consider as relevant to the assessment process coals of a merchantable quality in a range of 5. These are arrived at through considering bids and offers. This differential is published with the assessment in Coal Trader International. and does not produce its assessments in alliance or partnership with any market participant. All shipment volumes. Australia. repeatability and transparency. In cases where the apparent value of the commodity includes additional optionalities.500 kcal/kg NAR thermal coal price assessment will be published daily in Platts Coal Trader International. Platts’ editors will contact the widest range and largest possible number of market participants to ensure its assessment accurately reflect current market values. Availability: The FOB Newcastle 5. verifiability and repeatability are typically not taken into account.500 Thermal Coal Assessment Platts launched the assessment on January 3. ash content 17-23% and moisture to a maximum of 15% and will normalize to the standard specifications. 2012. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 17:30 Singapore local time. Volume: The assessment will reflect cargoes of 75. and should not be construed as a solicitation or offer to buy or sell any commodity. 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. Illiquid markets may be assessed relative to active benchmarks and still reflect market end-of-day values. For example. as of August 15.5. for each 1 percentage point of ash within the standard 17-23% range. Specifications: The standard specification for the assessment. Integrity of the data is critical for market processes and Platts will protect the quality of its assessments by verifying data. Platts will publish a differential. All market activity is viewed in light of its market relevance. Australia loading 7-45 days from date of publication.500 kcal/kg on an NAR basis with total sulfur content of 0. the forward swaps market and related factors when making an assessment. Examples include loading or delivery options held by the buyer or seller. will be normalized to a typical Panamax type vessel of 75. will be as follows: a standard calorific value of 5. Assessments are provided for information purposes. including standard or typical split and part-sized cargoes.65% as received.

800 kcal/kg gross-asreceived Free on Board Kalimantan. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the month for assessment purposes. named Kalimantan 3. Indonesia.800 kcal/kg on a GAR basis with typical total sulfur content of 0. including bids/offers 8. Platts would assess cargoes for loading between June 7 and July 15.000 .00%. 2013. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places.400 kcal/kg GAR. The assessment reflects the midpoint of the loading period. Tanjung Pemancingan.60% as received. For instance. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 17:30 Singapore local time.800. The assessment reflects the midpoint of the loading period. named Kalimantan 4.600 – 4. loading 7-45 days from the date of publication.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Platts gathers information including electronic trading data from many sources. PLATTS DAILY FOB KALIMANTAN 3. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. Muara Satui and the Indonesia Bulk Terminal) and for freight purposes the assessment will be normalized to Banjarmasin.200 kcal/kg gross-asreceived Free on Board Kalimantan.30% as received. For FOB Kalimantan. All payment terms will be normalized to cash or at sight basis. typical ash of 6% as received and typical total moisture of 38% as received. Availability: The FOB Kalimantan 3. The assessment methodology reflects values on a market on close basis. Timing: The assessments reflect the price of coal loading FOB Kalimantan 7-45 days forward from the date of publication. Balikpapan. Tanjung Pemancingan. Platts will take into consideration cargoes loading at the terminals in East Kalimantan and South Kalimantan provinces (Samarinda.000 mt with a minimum load rate of 8. loading 7-45 days from the date of publication. Specifications: The standard specification for the assessment. but the information must be verifiable for it to be considered in the assessment process. ash content up to 10% and total moisture up to 40% and will normalize to the standard specification. For instance. Volume: The cargo size for consideration is a minimum of 50. and transactions. For FOB Kalimantan. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the month for assessment purposes. Platts Daily FOB Kalimantan 4. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 17:30 Singapore local time.200 kcal/kg GAR thermal coal price assessment will be published daily in Platts Coal Trader International. Muara Satui and the Indonesia Bulk Terminal) and for freight purposes the assessment will be normalized to Banjarmasin. JUNE 2013 8 .800 THERMAL COAL ASSESSMENT Platts launched on April 1. Platts would assess cargoes for loading between June 7 and July 15.4.000 mt per day. Price Assessment: The assessment in US dollars per metric ton reflects the commercial value of coals sold in the spot market on an FOB basis Kalimantan. All other sizes including split and part cargoes will be normalized to this volume. 7. Specifications: The standard specification for the assessment. Availability: The FOB Kalimantan 4. including bids/offers and transactions. and on Platts European Power Alert (pages EP 0910) and the assessments will be available via Market Data in the Coal International (CI) category. ash content up to 9% and total moisture up to 41% and will normalize to the standard specification.200 Thermal Coal Assessment Platts launched on July 11. Trading activity.800 kcal/kg GAR thermal coal price assessment will be published daily in Platts Coal Trader International. Banjarmasin. Trading activity. sulfur up to 1. All payment terms will be normalized to cash or at sight basis. Indonesia. The assessment methodology reflects values on a market on close basis. Taboneo.000 mt per day. Indonesia. and on Platts European Power Alert (pages EP 0910) and the assessments will be available via Market Data in the Coal International (CI) category. on June 1.000 mt with a minimum load rate of 8. on June 1. sulfur up to 0. and publishes a daily 7-45 day forward price assessment for thermal coal with a calorific value of 4. Platts will consider as relevant to the assessment process coals in a range of 4. Indonesia. Balikpapan. 2012. will be as follows: a standard calorific value of 4. Timing: The assessments reflect the price of coal loading FOB Kalimantan 7-45 days forward from the date of publication.200. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 17:30 Singapore local time. Banjarmasin. Price Assessment: The assessment in US dollars per metric ton reflects the commercial value of coals sold in the spot market on an FOB basis Kalimantan. All other sizes including split and part cargoes will be normalized to this volume.60%. Volume: The cargo size for consideration is a minimum of 50.200 kcal/kg on a GAR basis with total sulfur content of 0. typical ash of 7% as received and typical total moisture of 35% as received. and publishes a daily 7-45 day forward price assessment for thermal coal with a calorific value of 3. Platts will consider as relevant to the assessment process coals in a range of 3. Taboneo. will be as follows: a standard calorific value of 3. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 17:30 Singapore local time. Platts will take into consideration cargoes loading at the terminals in East Kalimantan and South Kalimantan provinces (Samarinda.000 kcal/kg GAR.

Platts considers as relevant to the assessment process coals in a range of 5. 2012. named FOB US Gulf Coast Eastern Thermal Coal. Timing: The assessment reflects the price of coal loading FOB US East Coast Thermal Coal 14-45 days forward from the date of publication. Specifications: The standard specification for the assessment. Platts considers as relevant to the assessment process coals in a range of 6. Alabama.300 6.000 mt. named FOB US East Coast Thermal Coal. For FOB US East Coast Thermal Coal.500 kcal/kg on a NAR basis with total sulfur content of 1% as received and typical ash of 12% as received. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 4 pm US Eastern Prevailing time. Maryland. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. Platts takes into consideration cargoes loading at terminals from Baltimore. and via Platts Market Data. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 4 pm US Eastern Prevailing time. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 4 pm US Eastern Prevailing time. The assessment reflects the midpoint of the loading period. is as follows: a standard calorific value of 6. are normalized to a typical Panamax type vessel of 75. Platts assesses cargoes for loading between June 14 and July 15. All shipment volumes. loading 14-45 days from the date of publication. 2012.000 kcal/kg net-as-received Free on Board US Gulf Coast. JUNE 2013 9 .800 6. 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). are normalized to a typical Panamax type vessel of 75. For FOB US Gulf Coast Eastern Thermal Coal. For instance. The assessment methodology reflects values on a market on close basis. Louisiana. Volume: The assessment reflects cargoes of 75. including standard or typical split and part-sized cargoes. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the month for assessment purposes. on Platts Electricity Alert and Platts European Power Alert. and for freight purposes the assessment are normalized to Hampton Roads.000 kcal/kg gross-asreceived Free on Board US Gulf Coast. to Hampton Roads. and normalizes to the standard specification. 11. The assessment reflects the midpoint of the loading period.000 mt. Availability: The FOB US East Coast Thermal Coal assessment is published daily in Platts Coal Trader and Coal Trader International (on a delayed basis). sulfur up to 5% and ash content up to 16%. Volume: The assessment reflects cargoes of 75.000 mt. loading 14-45 days from the date of publication. 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. Price Assessment: The assessment in US dollars per metric ton reflects the commercial value of Eastern bituminous coals (mined east of the Mississippi River) sold in the spot market on an FOB basis US East Coast.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places.000 mt.700 kcal/kg NAR. and publishes a daily 14-45 day forward price assessment for thermal coal with a calorific value of 6. Platts considers cargoes loading at terminals from New Orleans. Price Assessment: The assessment in US dollars per metric ton reflects the commercial value of Eastern bituminous coals (mined east of the Mississippi River) sold in the spot market on an FOB basis US Gulf Coast. Trading activity. including bids/offers and transactions. to Mobile. All shipment volumes. For instance. on June 1. and normalizes to the standard specification.200 kcal/kg NAR. sulfur up to 3% and ash content up to 16%. including bids/offers and transactions. Specifications: The standard specification for the assessment. on June 1. 10. Platts Daily FOB US East coast thermal coal assessment Platts launched on October 1. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 4 pm US Eastern Prevailing time. The assessment methodology reflects values on a market on close basis. and via Platts Market Data. 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. is as follows: a standard calorific value of 6. Virginia. Platts Daily FOB US Gulf Coast Eastern Thermal Coal Assessment Platts launched on October 1. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. 9. including standard or typical split and part-sized cargoes. 2012.000 kcal/kg on a NAR basis with total sulfur content of 3% as received and typical ash of 12% as received. Platts Daily FOB US Gulf Coast western Thermal Coal Assessment Platts launched on October 1. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the month for assessment purposes. Trading activity. and publishes a daily 14-45 day forward price assessment for thermal coal with a calorific value of 5. on Platts Electricity Alert and Platts European Power Alert. Platts assesses cargoes for loading between June 14 and July 15.

000 kcal/kg on a GAR basis with total sulfur content of less than 0. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the month for assessment purposes.800 5. 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 FOB Canada/US West Coast Thermal Coal. California and for freight purposes the assessment is normalized to Vancouver.000 kcal/kg gross-asreceived Free on Board Canada/US West Coast. The assessment methodology reflects values on a market on close basis. Platts Daily FOB Canada/US West Coast Thermal Coal Assessment Platts launched on October 1. 13. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 4 pm US Eastern Prevailing time.800 5. to Houston. 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. an FOB Richards Bay coal terminal. including standard or typical split and part-sized cargoes. ash content up to 10% and total moisture up to 30%. and publishes a daily 14-45 day forward price assessment for thermal coal with a calorific value of 5.000 kcal/kg on a GAR basis with total sulfur content of less than 0. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. on June 1. 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). British Columbia to Los Angeles. sulfur up to 1%.000 mt.200 kcal/kg GAR. loading 14-45 days from the date of publication. are normalized to a typical Panamax type vessel of 75. The assessment reflects the midpoint of the loading period. typical ash of 5.200 kcal/kg GAR. is as follows: a standard calorific value of 5. named FOB Canada/ US West Coast Thermal Coal. and via Platts Market Data. on June 1.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Price Assessment: The assessment in US dollars per metric ton reflects the commercial value of Western sub-bituminous coals (mined west of the Mississippi River. is as follows: a standard calorific value of 5.5% as received and typical total moisture of 27% as received. Texas. Platts assesses cargoes for loading between June 14 and July 15. including bids/offers and transactions.000 mt. Volume: The assessment reflects cargoes of 75. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 4 pm US Eastern Prevailing time. Australia basis. are normalized to a typical Panamax type vessel of 75. Specifications: The standard specification for the assessment. 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.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 12. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the month for assessment purposes. and normalizes to the standard specification.5% as received. South Africa basis and an FOB Newcastle. Louisiana.5% as received.000 mt. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 4 pm US Eastern Prevailing time. primarily from the Powder River Basin) sold in the spot market on an FOB basis US Gulf Coast. For instance. on Platts Electricity Alert and Platts European Power Alert. 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). Texas and for freight purposes the assessment is normalized to Houston. For FOB US Gulf Coast Western Thermal Coal. The assessment methodology reflects values on a market on close basis. JUNE 2013 10 . loading on a 7-45 day forward basis from date of publication. primarily from the Powder River Basin) sold in the spot market on an FOB basis Canada West Coast or US West Coast. Platts considers as relevant to the assessment process coals in a range of 4. on Platts Electricity Alert and Platts European Power Alert.5% as received and typical total moisture of 27% as received.000 mt. Platts considers as relevant to the assessment process coals in a range of 4. loading 14-45 days from the date of publication. and normalizes to the standard specification. Platts assesses cargoes for loading between June 14 and July 15. Specifications: The standard specification for the assessment. Platts takes into consideration cargoes loading at terminals from Ridley. 2012. Price Assessment: The assessment in US dollars per metric ton reflects the commercial value of Western sub-bituminous coals (mined west of the Mississippi River. and via Platts Market Data. including standard or typical split and part-sized cargoes. Specifications: The standard specifications for the assessments will be as follows: CIF ARA: a standard calorific value of 6. Platts takes into consideration cargoes loading at terminals from New Orleans. All shipment volumes. typical ash of 5. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 4 pm US Eastern Prevailing time. For instance. Platts INTERNATIONAL DAILY PHYSICAL THERMAL COAL ASSESSMENTS Platts publishes forward price assessments every UK business day for thermal coal on a CIF Antwerp-Rotterdam-Amsterdam (ARA) basis. Volume: The assessment reflects cargoes of 75. sulfur up to 1%. Trading activity. British Columbia. ash content up to 10% and total moisture up to 30%. including bids/offers and transactions. named FOB US Gulf Coast Western Thermal Coal. The assessment reflects the midpoint of the loading period. Trading activity. All shipment volumes.

Platts frequently cross-checks information and may track delivery of actual cargo shipments. including bids/offers and transactions. sulfur up to 1. Transactions that are negotiated within the framework of longer-term contractual arrangements (term contracts and deals) are typically excluded from the assessment process. non-standard credit terms.7% as received and maximum ash 13% air dried basis for any destination Availability: The coal assessments are published daily in Coal Trader International. bids and offers as well as demand/supply fundamentals in the CIF ARA. will be normalized to a typical Panamax type vessel of 75. Platts’ editors will contact the widest range and largest possible number of market participants to ensure its assessments accurately reflect current market values.00%.300 kcal/kg GAR with maximum sulfur 0. Assessment Time: Platts thermal coal and ash differential assessments reflect the transactable value prevailing at 17:00 London local time. Bids and offers should be increased or decreased in realistic increments for inclusion in the assessment process. Platts assessments take into account any time value of a backwardated or contango market structure. and on Platts real-time news service Platts European Power Alert and will be available via Market Data in the Coal International (CI) category.5%. 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. traders. on January 2. or non-standard quality specifications. broking houses and other active spot market participants. supply-demand constraints. will be as follows: a standard calorific value of 5. Trading activity.500 kcal/kg NAR thermal coal price assessment will be published daily in Platts Coal Trader International. offers or deals that contain excessive optionality for either the buyer or seller may be disregarded in the assessment process. ash content 17-23% and moisture to a maximum of 13% and will normalize to the standard specifications. and for loading 7-45 days forward from the date of publication (FOB Richards Bay. Specifications: The standard specification for FOB Richards Bay 5.300 . All shipment volumes.500 kcal/kg net-as-received on a Free on Board basis from Richards Bay. These market professionals may include utility companies. Platts will consider as relevant to the assessment process coals of a merchantable quality in a range of 5.700 kcal/kg NAR. the forward swaps market and related factors when making an assessment. but the information must be verifiable for it to be considered in the assessment process. South Africa loading 7-45 days from date of publication. Cargoes traded with more prompt or further forward laycans or NOR are normalized to the middle of the delivery window for assessment purposes. 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. 14. For example. FOB Newcastle).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. Timing: The assessments reflect the price of coal for delivery 15-60 days forward from the date of publication (CIF ARA . South Africa. the intrinsic value-in-use of the commodity may be masked. In cases where the apparent value of the commodity includes additional optionalities. 2013. Volume: The assessment will reflect cargoes of 75. plus confirmed and verifiable transactions that meet Platts editorial guidelines are given preference during the assessment process.will be taken as the date of arrival). All market activity is viewed in light of its market relevance.8% as received. FOB Richards Bay and FOB Newcastle markets as well as daily price movements in associated thermal coal markets. Examples include loading or delivery options held by the buyer or seller. Price Assessment: The assessment in US dollars per metric ton reflects the commercial value of coals sold in the spot market on a FOB basis Richards Bay.500 kcal/kg NAR. KwaZulu-Natal. verifiability and repeatability are typically not taken into account. and publishes a daily 7-45 day forward price assessment for thermal coal with a calorific value of 5.000 mt. Platts gathers information including electronic trading data from many sources. Integrity of the data is critical for market processes and Platts will protect the quality of its assessments by verifying data. FOB Newcastle).expected notice of readiness -NOR . volume tolerances exercisable by the buyer or seller. Assessments reflect market value for the specified delivery/loading window after taking into consideration the differences in prices prevailing along the time curve. repeatability and transparency. Transactions between related parties or transactions that do not meet Platts’ standards for transparency.5.000 mt. freight costs. typical ash of 20% on an air dried basis and typical total moisture of 8. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. Bids.500 kcal/kg on an NAR basis with total sulfur content of 0.METHODOLOGY AND SPECIFICATIONS GUIDE Coal FOB Richards Bay: a standard calorific value of 6. Platts daily FOB Richards BAY 5.500 thermal coal assessments Platts launched on June 3.000 mt. JUNE 2013 11 . Basis and Location: The FOB Richards Bay 5. Availability: The FOB Richards Bay 5. Volume: The assessments will reflect cargoes of 50. All shipment volumes. will be normalized to a typical cargo of 50. Platts may consider reported transactions. including standard or typical split and part-sized cargoes. coal producers. The assessment reflects the mid-point of the delivery/loading period. 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. Platts’ objective is to reflect the transactable value of the commodity assessed. The assessment methodology reflects values on a market on close basis.000 mt. including standard or typical split and part-sized cargoes.500 kcal/kg NAR price assessment will cover cargoes of thermal coal loading at Durban Coal Port or Maputo Port’s Matola Coal Terminal and normalized to Richards Bay Coal Terminal. South Africa.

firm bids and offers will be considered. Platts’ objective is to reflect the transactable value of the commodity assessed. Shanghai. volatile matter of up to 45% and will normalize to the standard specifications. The assessment reflects the mid-point of the loading period. non-standard credit terms. Cargoes traded with more prompt or further forward laycans are normalized to the middle of the period for assessment purposes. freight costs. Russia and South Africa. Zhanjiang and Zhuhai and normalized to Guangzhou. with typical sulfur content of 0. Indonesia. supply-demand constraints. supplydemand constraints. The assessment methodology reflects values on a market on close basis. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 17:30 Singapore local time.500 kcal/kg net-as-received on a Cost and Freight basis to South China. Platts gathers information including electronic trading data from many sources.5. Platts frequently cross-checks information and may track delivery of actual cargo shipments. or non-standard quality specifications. Assessments reflect market value for the specified loading window after taking into consideration the differences in prices prevailing along the time curve. In cases where the apparent value of the commodity includes additional optionalities. Basis and Location: The CFR China price assessments will cover cargoes of imported thermal coal delivered to south China ports including Guangzhou. total moisture to a maximum of 18% on a net as received basis.Platts will consider as relevant to the assessment process coals in a range of 5. Examples include loading or delivery options held by the buyer or seller. including bids/offers and transactions. All market activity is viewed in light of its market relevance. Platts assesses cargoes for loading between June 8 and July 15.500 kcal/kg NAR market as well as daily Asia-Pacific price movements in associated thermal coal markets. Xiamen. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 17:30 Singapore local time. firm bids and offers will be considered. Payment terms: Letter of Credit payable at sight. Fangcheng.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Timing: The assessments reflect the price of coal loading FOB Richards Bay 7-45 days forward from the date of publication. on June 1. Trading activity. broking houses and other active spot market participants. Transactions between related parties or transactions that do not meet Platts’ standards for transparency. but the information must be verifiable for it to be considered in the assessment process. For example. Volume: The minimum-sized cargo applicable for price assessment purposes is 40. offers or deals that contain excessive optionality for either the buyer or seller may also be disregarded in the assessment process. In the absence of trading. the forward swaps market and related factors when making an assessment. Platts may consider reported transactions. Specifications: The standard specification for CFR China 5. Trading activity. coal producers. Platts’ assessments take into account any time value of a backwardated or contango market structure. bids and offers as well as demand/supply fundamentals in the FOB Richards Bay 5. The assessment methodology reflects values on a market on close basis.300 . the intrinsic value-in-use of the commodity may be masked. delivered 15-60 days from the date of publication. plus confirmed and verifiable transactions that meet Platts editorial guidelines are given preference during the assessment process.7% as received. In the absence of trading. 15. reflects the transactable value of merchantable thermal coals sold in the spot market on a CFR South China basis. traders. 2013. Transactions that are negotiated within the framework of longer-term contractual arrangements (term contracts and deals) are typically excluded from the assessment process. Shenzhen. Platts may consider reported transactions. Assessment Process: Confirmed and verifiable trades that meet Platts editorial guidelines are given preference during the assessment process. Price Assessment: The assessment in US dollars per metric ton.700 kcal/kg NAR with a maximum sulfur content of 1% as received. 1. and publishes a daily 15-60 day forward price assessment for thermal coal with a calorific value of 5. verifiability and repeatability are typically not taken into account.500 kcal/kg NAR will be as follows: standard calorific value of 5.500 kcal/kg NAR market as well as daily Atlantic and Asia-Pacific price movements in associated thermal coal markets. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. JUNE 2013 12 . freight costs. Bids and offers should be increased or decreased in realistic increments for inclusion in the assessment process. Assessment Process: Firm bids and offers. Integrity of the data is critical for market processes and Platts will 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.500 kcal/kg NAR. Hong Kong. Platts Daily CFR SOUTH China Thermal Coal Assessment Platts launched on March. but not exclusive to Australia. the forward swaps market and related factors when making an assessment. maximum ash on a net-as-received basis of up to 23%. Platts will take into consideration international cargoes of thermal coal traded on the seaborne market and brought into southern China from countries including. typical ash of 17% on an air dried basis and typical total moisture of 12% and volatile matter of 35%. Assessment Time: Platts thermal coal assessment reflects the transactable value prevailing at 17:00 London local time. including bids/offers and transactions. repeatability and transparency. all other terms will be normalized to this standard. volume tolerances exercisable by the buyer or seller. Colombia. Bids. For CFR China. These market professionals may include utility companies.000 mt All other sizes including split and part cargoes will be normalized to this volume. Bids and offers should be increased or decreased in realistic increments for inclusion in the assessment process. bids and offers as well as demand/supply fundamentals in the CFR China 5. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 17:00 London local time. with a Chinese RMB conversion rate.

non-standard credit terms. Jingtang.7% as received. Integrity of the data is critical for market processes and Platts will protect the quality of its assessments by verifying data. firm bids and offers will be considered. Bids.300 . Transactions that are negotiated within the framework of longer-term contractual arrangements (term contracts and deals) are typically excluded from the assessment process. reflects the commercial value of coals sold in the spot market on an FOB Qinhuangdao basis. 16. volume tolerances exercisable by the buyer or seller. Examples include loading or delivery options held by the buyer or seller. Bids. typical total moisture of 10% and volatile matter of 25%. 1. Transactions that are negotiated within the framework of longer-term contractual arrangements (term contracts and deals) are typically excluded from the assessment process. loading 7-45 days from the date of publication. Specifications: The standard specification for FOB Qinhuangdao 5. repeatability and transparency. Volume: The minimum-sized cargo applicable for price assessment purposes is 40. bids and offers as well as demand/supply fundamentals in the FOB Qinhunagdao 5. offers or deals that contain excessive optionality for either the buyer or seller may also be disregarded in the assessment process. These market professionals may include utility companies. Platts assessments take into account any time value of a backwardated or contango market structure. or non-standard quality specifications. 2013. volume tolerances exercisable by the buyer or seller. or non-standard quality specifications. the intrinsic value-in-use of the commodity may be masked. maximum ash on a net-as-received basis of up to 14%. broking houses and other active spot market participants. and Tianjin and normalized to Qinhuangdao. Platts’ editors will contact the widest range and largest possible number of market participants to ensure assessments accurately reflect current market values. All other sizes including split and part cargoes will be normalized to this volume. volatile matter of up to 30% and will normalize to the standard specifications. including bids/offers and transactions. coal producers. with a US dollar conversion rate. Platts frequently cross-checks information and may track delivery of actual cargo shipments. verifiability and repeatability are typically not taken into account.500 kcal/kg NAR will be as follows: standard calorific value of 5. Transactions between related parties or transactions that do not meet Platts’ standards for transparency. Platts’ objective is to reflect the transactable value of merchantable quality of the commodity assessed. but the information must be verifiable for it to be considered in the assessment process. Transactions between related parties or transactions that do not meet Platts’ standards for transparency. total moisture to a maximum of 12% on a net as received basis. Payment terms: Letter of Credit payable at sight. supply-demand constraints. In the absence of trading. and publishes a daily 7-45 day forward price assessment for thermal coal with a calorific value of 5. traders.5. Bids and offers should be increased or decreased in realistic increments for inclusion in the assessment process. is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 17:30 Singapore local time. All market activity is viewed in light of its market relevance. repeatability and transparency. Platts frequently cross-checks information and may track delivery of actual cargo shipments. Assessments reflect market value for the specified loading window after taking into consideration the differences in prices prevailing along the time curve. the intrinsic value-in-use of the commodity may be masked. The assessment methodology reflects values on a market on close basis.700 kcal/kg NAR with a maximum sulfur content of 1% as received.500 kcal/kg NAR market as well as daily Asia-Pacific price movements in associated thermal coal markets. Unit: Prices are to be quoted in US dollars per metric ton ($/mt) to two decimal places. non-standard credit terms. Trading activity. Assessments reflect market value for the specified loading window after taking into consideration the differences in prices prevailing along the time curve. Platts will consider as relevant to the assessment process coals in a range of 5. typical ash of 12% on an air dried basis. offers or deals that contain excessive optionality for either the buyer or seller may also be disregarded in the assessment process. verifiability and repeatability are typically not taken into account. Basis and Location: The FOB Qinhuangdao price assessment will cover cargoes of thermal coal loading at north China ports including Caofeidian. Price Assessment: The assessment in Chinese RMB per metric ton.500 kcal/kg NAR with typical sulfur content of 0. JUNE 2013 13 . Platts assessments take into account any time value of a backwardated or contango market structure.000 mt. Platts gathers information including electronic trading data from many sources.500 kcal/kg NAR Thermal Coal Assessment Platts launched on March. Assessment Time: Platts thermal coal assessments reflect the transactable value prevailing at 17:30 Singapore local time. the forward swaps market and related factors when making an assessment. Assessment Process: Confirmed and verifiable trades that meet Platts editorial guidelines are given preference during the assessment process. Examples include loading or delivery options held by the buyer or seller.500 kcal/kg net-as-received on a Free on Board (FOB) basis from north China.METHODOLOGY AND SPECIFICATIONS GUIDE Coal All market activity is viewed in light of its market relevance. freight costs. Platts may consider reported transactions. Platts Daily FOB Qinhuangdao 5. In cases where the apparent value of the commodity includes additional optionalities. In cases where the apparent value of the commodity includes additional optionalities. Integrity of the data is critical for market processes and Platts will protect the quality of its assessments by verifying data. Platts’ objective is to reflect the transactable value of the commodity assessed.

only bids and offers that are raised or lowered in realistic increments are considered. The assessment is published every UK business day and reflects coal for delivery in the next 90-day loading period. Content/MethodologyReferences/MethodologySpecs/metcoalmethod. Platts gathers information including electronic trading data from many sources. FOB Pacific Coast and Baltic Russia. 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. with a historical data series available for the period of April 2002 to January 2009. 17. These market participants may include utility companies.Platts. CFR China and CFR India is available at: http://www. bids and offers transacted up to 4:30 pm London time. July and October). Loadings and deliveries from/ to terminals in all major coal ports in these locations are considered for assessment. Prior to that. FOB Poland.com/IM. including bids/offers and transactions. Traded and tradable values based on bids and offers are used along with editorial judgment to arrive at the published price ranges. based on repeatable trades. April. superseding quarterly assessments started April 2002 published for the same range of met coal markets. Basis and location: Seaborne coking coal FOB Hampton Roads (US) and FOB East Coast US (blend). Frequency: Assessments are published monthly as of April 2009 prices. Methodology: Assessments are published following editorial engagement with producers. coal producers and broking houses. traders.pdf. Platts monthly metallurgical coal assessments Availability: Platts’ monthly global metallurgical coal (MetCoal) assessments have been published in International Coal Report since April 2009. Platts assessments reflect firm bids. Buyer must also have access to barges/vessels congruent with its level of purchasing. offers and transactions where the seller has the obligation to provide a reasonable loading window to the buyer within the contractual period. Performance is paramount with contracts expected to be performed to mutual satisfaction. shippers and other active spot market participants. coal producers. Finally. Platts editors will contact the widest range and largest possible number of relevant FOB Barge ARA market participants to ensure its assessment accurately reflects current market values.000 kcal/kg net calorific value as received coal. 2010.000 mt on the spot market and assessments are normalized to 5. FOB South Africa. In addition. The seller has the option to declare the loading facility or discharge vessel for onward loading to receiving barge/vessel. Platts daily metallurgical coal assessments Daily Metallurgical Coal: Detailed information on Platts daily spot price assessments for hard coking coal FOB Australia.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Platts’ editors will contact the widest range and largest possible number of market participants to ensure assessments accurately reflect current market values. Specifications are: ■■ ■■ ■■ typical energy content of 6. consumers. sulfur content of 1% maximum. From the 1st-15th of the current month the assessment period includes the current month. traders.800 kcal/kg net as received. but the information must be verifiable for it to be considered in the assessment process. if there are no qualified trades in a product and no firm bids and offers in the market. please visit the following link: http://www. FOB Indonesia. Platts looks at spreads against other products or markets. Platts reporters look at firm bids and offers. (Note Platts has since March 15.pdf. FOB News South Wales (NSW) and Queensland. 2010 also published daily assessments CFR China and FOB Australia and CFR India since July 5. current month +1 and current month +2. and FOB Venezuela. Platts regional daily FOB barge ARA assessment Platts assesses coal on an FOB Barge ARA basis. FOB West Coast Canada. minimum calorific value of at least 5. Unit: Prices are to be quoted in Chinese RMB per metric ton (RMB/mt) to two decimal places. Platts published the assessments quarterly (January. FOB barge parcels are generally traded in lots of 5. CFR China. The assessment reflects the price of coal in the next 90-day loading period. The market-on-close assessment reflects the tradable value of the commodity at the given points in time.000 mt cargoes. Australia.Content/MethodologyReferences/ MethodologySpecs/metcoalmethod. Confirmed trades are given preference when making the assessment. Platts regularly cross-checks information and may track delivery of actual cargo shipments. current month +2 and current month +3. 18.platts. JUNE 2013 14 . 19. These market professionals may include utility companies. Such loading facilities must have adequate installations and stocking facilities congruent in the volume of the trade. broking houses and other active spot market participants. From the 16th of the month forward the assessment period consists of current month +1.com/IM.Platts. Rotterdam or Antwerp. Platts gathers information from many market sources including electronic trading data. fully confirmed within such time without any subjects.platts. 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. but such information must be verifiable for it to be considered in the assessment process. FOB Colombia. is covered during the typical operating hours of the market with the assessment reflecting market values at 4:30 pm London time. traders. Trading activity. For more information on these daily assessments. Terminal loading locations considered in the assessment process are Amsterdam. In the absence of trades. 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 infor mation.

Physical freight prices are weekly quotations provided by Simpson. the date of assessment is noted in the column heading of the 90-Day Forward Benchmark Coal Price Assessments. Usage concentrations for coal were matched as closely as possible with hubs where spot trading in natural gas and electricity are active. in a range of % content. During the ozone season.15 lb/MMBtu with controls. Atlanta and Kansas City were chosen for these comparisons For each region. expressed in dollars per ton and per MMBtu. Priced for the Cincinnati region are the following: CAPP barge OTC spec coal (12. The spark spread named CAPP barge OTC spark was previously named NYMEX. Prices are quoted for the UK and German markets. with and without NOx controls. as provided by Megawatt Daily. as shown in Department of Energy and Federal Energy Regulatory Commission records. Coal Trader. Quality specifications do not represent any particular grade or brand of coking coal. but hypothetical costs are calculated for readers’ information. Quality: All coking coal assessments in the pricing table are for hard coking coal except as noted for semi-soft coking coal and PCI. from the Appalachian and Western coal fields. Columbia Gas Transmission. Spence & Young. Coal Outlook. phone +44-20-7176-6661. current as of the end of business day preceding the publication date. or by post at: 1200 G Street NW. the underlying specifications and methodology were not changed. rather than the day of assessment. Washington D. air dried) and total sulfur (max %. Coal plants are assumed to have nitrogen oxide emission rates of 0. coal not needing allowances. air dried) and for ash (max %. or by post at 20 Canada Square. East gas hub. Platts publishes dark spreads for two months ahead. Volume: Standard full shipments of hard coking coal.000 Btu/kWh heat rate. for plants needing NOx allowances. The formula for UK and German dark spreads uses an energy conversion factor of 7. Shipments in smaller vessels than Panamaxes are adjusted to normalize for a Panamax vessel. Cross-fuel comparisons. for gas and coal. International Coal Report.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Timing: Cargoes traded for delivery within the next 90 days. Please don’t hesitate to contact us. Transcontinental Gas Pipe Line. particularly the heavily traded Central Appalachian barge and rail coals and the Western Powder River Basin 8. or by phone at +1-202-383-2190.C. Prices are published as a low-high range of the tradable value on the day of publication. Platts calculates the mathematical average of its 90-Day Forward Benchmark coal price assessments during two previous months and three previous quarters. Coal Trader gives daily price assessments plus a transport adder and a total coal cost including current sulfur dioxide allowances for these three coals.800 OTC coal (8. For the UK. spark spreads are also shown for coal-burning units needing NOx allowances. 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. 0. 2010. plus rail transportation. Platts publishes dark spreads for two months ahead. Coal Trader International: This summarizes the physical and applicable paper markets. Panamax and Handymax vessels. two quarters ahead and one season ahead. and Coal Trader International welcome all subscriber comments and ideas. Canary Wharf. In each region.800 spec coals.60 lb/MMBtu with no controls and 0. US: Coal Trader editors designed these comparisons by tracking major flows of coal. and the spark spread named PRB 8. Averages include all assessments made within the calendar period. German and UK Dark Spread assessments. plus rail transportation. by fax at +1-202-383-2187. Priced for the Atlanta region are: CAPP rail (CSX) OTC coal (12. The full formula is as follows: Baseload power price in euro – (((coal price in US dollar ÷ exchange rate) ÷ energy conversion factor) ÷ fuel efficiency factor) JUNE 2013 15 . zone 3 gas hub. Spot costs for natural gas are provided by Gas Daily. 20005. and natural gas prices are midpoints of the prompt month UK and Dutch TTF assessments from Platts European Gas Daily. The regions of Cincinnati.800 OTC spark was PRB 8800. a typical cost per megawatt-hour is calculated for a coal plant with a 10. and Cinergy electricity hub. Before August 2006.com.500 Btu/lb. In Europe. 1% sulfur) plus barge transportation. The MWh costs. Coal costs are calculated for hypothetical plants needing no allowances. and natural gas in each region. Daily Snapshot. 1%sulfur). particularly on the accuracy and usefulness of the data in these tables. semi-soft coking coal and PCI loaded onto Capesize. and Into Southern electricity hub. Suite 1000. two quarters ahead and three calendar years ahead. Other indices and pricing data Monthly and Quarterly Averages for Platts’ 90-Day Forward Benchmark Assessments: As an indicator of coal market trends.1 (converting 1 metric ton of coal into MWh) and a fuel efficiency factor (coal) of 35%. Specifications for volatile matter (Vol. Coal prices are Platts’ assessments. are compared with the day’s spot price in the region’s electricity market. and in the May 1-September 30 ozone season. air dried) represent the range of quality characteristics of available coals in the region. needing SO2 controls only. Appalachia natural gas hub. the averages were calculated using the ICR publication date.35% sulfur). CenterPoint.000 Btu/lb. UK.800 Btu/lb.000 Btu/kWh heat rate and for a gas plant with an 8. The source of all power prices is European Power Alert and European Power Daily. the spark spread named CAPP rail (CSX) OTC spark was CSX 1%. Term (contract) prices are not included for assessment. The source of all coal prices is Coal Trader International. by e-mail at coal@platts. and Into Entergy electricity hub. as the reference date. Plants in Georgia and Missouri are not currently subject to the US government’s NOx SIP Call program. Spark spreads are shown for coal needing sulfur allowances. fax +44-20-7176-6657. Contact: For comments or queries please contact cokingcoal@platts. Unit: All prices are quoted in US dollars per metric ton ($/mt) including moisture content. both with and without NOx control equipment. ■■ 20. you may contact our London office. Both UK and German dark spreads are based on CIF ARA coal assessments and equivalent UK and German electricity assessments. London E14 5LH. For Germany.com.. Electricity prices are midpoints of the UK and German prompt month prices from Platts European Power Daily. Priced for Kansas City are: PRB 8. The three Coal Trader Spark Spreads were renamed effective December 20.

Discontinued pricing data ■■ 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. ■■ The formula for the price is: Freight RB to ARA in US dollar – Virtual Freight in US dollar Freight indicators: Coal Trader International and International Coal Report carry typical spot rates for coal loadings for key routes worldwide courtesy of Simpson. Coal Trader International: The Freight Differential reflects the spread between the cost of real physical spot Capesize freight for the Richards Bay- At the time of discontinuation of the CIMs. South Africa on an FOB basis.000 kcal/kg NAR) prompt month in US dollar – FOB Richards Bay (6. and equivalent UK and German electricity assessments. Platts decided to discontinue the Platts Coal Industry Markers (CIMs) effective October 31. Indonesia. and on an FOB basis for Richards Bay coal terminal. close of business (5 pm) London time. Rotterdam and Antwerp on a CIF basis and spot thermal coal loaded at Richards Bay. Spence & Young shipbrokers on a weekly basis) and the Platts Virtual Freight. Platts had launched the weekly CIMs in January 2005 on a CIF ARA basis. Rotterdam route (as supplied by Simpson. For Germany. The CIMs were calculated weekly by taking the mean of the end-of-tradingweek (typically Friday) prices. Platts also publishes weekly and monthly brokerbased indices in Coal Trader and Coal Outlook. For the UK. 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. The source of all coal prices is Coal Trader International. two quarters ahead and three calendar years ahead. as submitted by industry participants and representing their individual views of the state of the market. Australia and Kalimantan (5. The source of all power and emissions prices is European Power Alert and European Power Daily.96. South Africa. Carbon adjusted. 21. and the equivalent price of electricity on any given day. ■■ 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. Both UK and German clean dark spreads are based on CIF ARA coal assessments. the CIM was then calculated. Platts publishes clean dark spreads for two months ahead. a fuel efficiency factor (coal) of 35% and a carbon intensity factor of 0. ■■ Coal Industry Markers (CIMs): Following industry consultation. JUNE 2013 16 . For more information on emissions prices. The CIMs data series was discontinued in the Market Data category CI. equivalent EU emissions allowances assessments. see Platts’ Methodology and Specifications Guide for Emissions. 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. 2010 (see Section 3). Newcastle.1 (converting 1 metric ton of coal into MWh).000 kcal/kg NAR) prompt month in US dollar Freight Differential. 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. but historical data from January 2005 to October 2010 will remain available for reference purposes. 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.194 [tons of carbon per metric ton of coal]) ■■ Virtual Freight. and current vessel ladings courtesy Lalemant and Skaarup Chartering Corp. Platts publishes clean dark spreads for two months ahead. Prices are quoted for the UK and German markets.900 kcal/kg and 5.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Clean Dark Spreads Platts clean dark spreads are indicative prices giving the average difference between the cost of coal and emissions.000 kcal/k). 2010. Platts editors then calculated the range of the mean plus and minus 1. Rotterdam and Antwerp factoring in the added cost of carbon emissions certificates. ■■ The formula for the price is: CIF ARA (6.8 times the data’s standard deviation After all data was checked for validity and any data determined to be non-representative had been discarded. All non-Platts freight data is reproduced with the permission of the data provider. Spence & Young. The formula for the UK and German clean dark spreads uses an energy conversion factor of 7. two quarters ahead and one season ahead.

300 GAR 6.8 1 0.8 6 23-25 0.000 11.268 GAR 8.900 GAR 5.5 0.080 NAR 6.000 GAR 5.4 17 12 13 10 15 8 15 Coal Trader and Coal Trader International Daily FOB US Thermal Coal Assessments (Standard specifications used as basis for normalizing) Btu/lb FOB US East Coast Thermal Coal FOB US Gulf Coast Eastern Thermal FOB US Gulf Coast Western Thermal FOB Canada/US West Coast Thermal 12.000 NAR 6.6 9 9 11.6 0.6 1 0.340 11.5 <0.300 11.997 GAR 8.300 10.450 GAR 6.4 0.000 GAR 6.300 6.000 GAR 6.400 GAR 6.6 9 31+ 0.8 0.200 10.300 12.8 1 1 16 9 9 7 15 16 16 1 0.000 6.6 0.200 5.300 GAR 1 0.Europe Richards Bay Pacific Market Newcastle FOBT GAR 6.080 NAR 6.5 8.5 19-24 25-29 20-25 0.% (max) Ash% (max) Vol.600 11.300 GAR 7.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Specifications International Coal Report and Coal Trader International PFC-Coal Forward Paper Coal Pricing Table Basis Atlantic Market CIF ARA .200 Kcal/kg Sulf.6 10 17-19 19-21 28+ 23-30 30+ 0.168 GAR 11.5 12 12 5.300 6.5 5. Sulfur% (max) Ash% (max) 6.000 NAR 5.000 NAR 6.7 8 36-40 0.000 6.8 0.600 9.5 9 31-37 0.600 11.4 9 17-22 0.700 11.300 GAR 6.5 4 30-35 0.7 7 14 0.800-6.8 0.8 7 30-35 0.950 11.200 GAR 5.5 17-20 0.8 0.500 GAR 6.8 7 34-36 1 7 23-30 1 8 Nation/Region Btu/lb Atlantic Market ARA CIF .7 1 7 9 25-28 0.500 11.Europe Colombia Bolivar Venezuela Maracaibo Poland Baltic Russia Baltic South Africa Richards Bay Pacific Market CIF Japan CIF Korea West Australia Gladstone Newcastle China Qinhuangdao Indonesia Kalimantan Russia Pacific 10.% Ash% 6.7 9 23-30 0.8% CIF NAR FOBT NAR 6.8 9 9 9 8 8 25-31 32-37 0.7 7 28-32 0.000 GAR 1 3 <0.997 GAR Kcal/kg Sulf.800 11.5 JUNE 2013 17 .300 0.500 NAR 6.000 6.000 <1% <1% OTC Benchmark Physical Steam Coal Pricing Table Nation/Area Basis Europe ARA Richards Bay Newcastle Bolivar Qinhuangdao Barge ARA CIF NAR FOBT NAR FOBT GAR FOBT GAR FOBT GAR FOBT NAR Kcal/kg Sulfur % max Kcal/kg 6.5 0.950 10.000 90-Day Forward Benchmark Physical Steam Coal Pricing Coking Coal Pricing Table Nation/Region United States Hampton Roads East Coast (Blend) Canada West Coast (semi-soft) Australia NSW (semi-soft) Queensland PCI Poland (semi-soft) Russia Pacific Coast Baltic China South Africa PCI Indonesia PCI Colombia PCI Venezuela PCI 30-35 0.8 0.

5 1.0 Rail 13.400 0.5 Rail 11.500 1.800 0.500 1.800 5.0 Barge 10.80 Rail 11.500 1.00 Editor’s 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 Upper Ohio River Central Appalachia CAPP barge physical CAPP rail (CSX) physical Thacker/Kenova Big Sandy/Ohio River Illinois Basin Powder River Basin Rocky Mountain Colorado Utah 13.67 1.5% 50 4% 50 4% 45 Daily OTC Assessments and OTC Hedge Price Monitor SO2 Lbs Sulfur / MMBtu Percent Region Transport Btu/lb (max) (max) Central App.5 1.2 0.000 4.000 5.500 1.500 1.8 0.75 Barge Rail 12.0 Rail 11.700 0.500 6+ Rail 8.6% <50 4% .35 8.400 0.2 Barge 11.80 Rail 11.000 0.500 1.8 0.500 6+ Barge 12.6 1.0 Rail 12.000 12.8 0.8 0.5 NS 12.00 <1.5.35 Central App.800 0.400 0.80 Rail 8.00 JUNE 2013 18 .67 1.000 1.500 1.6.6 CSX 12.2 CSX 12.000 1.METHODOLOGY AND SPECIFICATIONS GUIDE Coal Specifications Coal Outlook and Coal Trader Petcoke Spot Price Assessments Origin Sulfur HGI US Gulf US West Coast Venezuela 6% .000 <3.35 Barge Rail 12.5% 40 5% .800 0. CAPP barge physical CAPP rail (CSX) OTC Powder River Basin Wyoming Rail 8.00 <1. Spread — 12.500 1.67 Barge 12.00 — 12.500 2. NYMEX look-alike CSX (Big Sandy/Kanawha Powder River Basin Wyoming Rail Rail 8.80 Rail Platts OTC Broker Index SO2 Lbs Sulfur / MMBtu Percent Region Transport Btu/lb (max) (max) Central App.500 0.2 NS 12.35 Rail 8.80 Rail 11.000 12.

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