SUBSCRIBER NOTE UPDATE: Platts to revise assessment process for Premium Low Vol HCC FOB Australia

(Clarifies full name of assessment in lead) Platts has decided to change the method of assessing its Premium Low Vol Hard Coking Coal FOB Australia assessment on the back of observed changes in market trading patterns. This follows a subscriber note published on this subject on December 14, 2015.

Transactions, bids and offers made on a FOB or delivered basis to countries other than China have increased, along with the consistency and repeatability of these inputs. At the same time, China's imports of prime hard coking coal have waned in recent years, meaning that the freight back-calculated CFR inputs may no longer, on a given day, be the primary driver in forming the FOB Australia assessment.

Effective April 1, 2016, Platts will use FOB Australia export inputs to form its FOB Australia assessments, provided that this information meets Platts editorial standards. Platts may also consider delivered indications, on a netback basis, to test against FOB indications, provided that these inputs reflect sufficient liquidity, as well as price consistency and repeatability for multiple destinations.

The freight back-calculation used for delivered price indications will depend on the vessel class used for the respective voyage. If unknown, then the most commonly used vessel class for such a route and tonnage will be assumed in a freight back-calculation, using the Platts freight assessments of the route.

Platts has also proposed to launch a freight netback value that would be calculated using Platts Premium HCC CFR China assessment calculated back to a FOB Australia basis using the Platts published Panamax freight rate from Hay Point (Australia) to Qingdao (China). This will be published under the daily brand relativities table.

Please address any further feedback or questions to: Annalisa Jeffries (annalisa.jeffries@platts.com), Edwin Yeo (edwin.yeo@platts.com) and pricemethodology@platts.com.

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.