Platts proposes to discontinue FOB Australia metallurgical coal penalties and premia differentials

Platts, part of S&P Global Commodity Insights, is proposing to discontinue the publication of its metallurgical coal penalties and premia differentials, currently published as percentages of the Premium Low Vol FOB Australia assessment, with effect from July 1, 2024.

The proposal arises from a shift in the way the market values spot cargoes. Initial feedback indicates that market participants considered differences in quality between coals in terms of aggregate brand relativities, for example, to the Platts PLV FOB Australia price assessment, rather than by applying penalties and premia for individual specifications.

Platts US low-vol HCC penalties and premia would continue to be published under this proposal, to reflect a wider range of US coal specifications, such as CSR and sulfur, with assessed values for consideration in the assessment.

The assessments and calculations that would be affected are:

Symbol Description

CPCSA00 CSR per 1% as a percentage of PLV FOB Australia

CPCSP00 CSR per 1% PLV $/mt

CPVPA00 VM per 1% as a percentage of PLV FOB Australia

CPVMP00 VM per 1% PLV $/mt

CPTPA00 TM per 1% as a percentage of PLV FOB Australia

CPTMP00 TM per 1% PLV $/mt

CPAPA00 Ash per 1% as a percentage of PLV FOB Australia

CPPAP00 Ash per 1% PLV $/mt

CPSPA00 Sulfur per 0.1% as a percentage of PLV FOB Australia

CPSPV00 Sulfur per 0.1% PLV $/mt

The assessments appear in Platts Connect, Steel Markets Daily, Coal Trader International, on fixed pages MW0205 of Platts Metals Alert, ST0205 of Platts Steel Alert, GC1051 of Platts Global Coal Alert, and in the Platts price database.

Detailed specifications of Platts metallurgical coal assessments can be found at https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_metcoal.pdf.

Platts invites feedback on this proposal to pl_cokingcoal@spglobal.com and pricegroup@spglobal.com by Jan. 31, 2024.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.