SUBSCRIBER NOTE: Platts, Fenwei propose launch of CMCI met coal assessment series

Platts, a division of McGraw Hill Financial, and Shanxi Fenwei Energy Consulting Co., are proposing to launch the China Metallurgical Coal Index price assessment series, which will initially include five spot metallurgical coal assessments in the domestic Chinese spot market, starting in early April 2015. The proposed assessments are designed to reflect the daily tradable values of a range of coal specifications in the Chinese domestic spot market. Provisionally, the assessments would include two premium hard coking coal assessments (Liulin No. 4 and Liulin No. 9), a high-vol high-fluidity assessment (North China Fat Coal), a PCI coal assessment (Shanxi PCI), and a semi-soft coking coal assessment (Shandong Semi Soft). The assessments will be assessed in yuan per metric ton on an ex-washplant, free on rail, and when applicable on a delivered duty paid Tangshan basis. Platts and Fenwei also propose to assess four domestic logistic routes, including both rail and truck freight from Shanxi to Tangshan and Shandong. Using these new assessments, it will be possible for Platts to analyze the relationship between domestic and seaborne metallurgical coal markets, and Platts may therefore consider the publication of an implied arbitrage calculation. Platts and Fenwei welcome feedback on the proposal, including assessment specifications. Please address any questions or comments to cokingcoal@platts.com with a cc to pricegroup@platts.com.