Platts to launch met coal assessments March 15

Following industry consultation, Platts has decided to launch daily spot market price assessments of metallurgical coal starting with hard coking coal basis FOB Australia and CFR China. The launch date for these new assessments is March 15, 2010. These assessments will reflect the values of typical shipments loading in Australia for any destination, and for delivery into China from any potential source each business day. Platts will also publish daily a dry bulk freight assessment between China and Australia as a guide to normalization, reflecting that major trade route. Close-of-market data for assessments will be 18:30 Singapore time (1030 GMT).

Hard coking coal grades with the following specifications will be included in the assessment process: coke strength after reduction (CSR) of 50% minimum; volatile matter (VM) of min 17.5-34.0% maximum air dried; crucible swell number (CSN) of 5.5 min; ash of 10.5% max air dried; sulfur (S) of 1.0% max air dried; phosphorous (P) of 0.08% max air dried; total moisture (TM) of 10.5% max as received; maceral composition vitrinite of 48-80%; mean max reflectance of vitrinite of 0.90-1.65%.

Spot cargoes within these quality ranges will be normalized to the following published Platts specification basis representing the typical "target box" of blended coking coals typically sought by blast furnace operators in the Asia-Pacific region: coke strength after reduction (CSR) of 64% minimum; volatile matter (VM) of min 25.5% maximum air dried; crucible swell number (CSN) of 7.5 typical; ash of 9% max air dried; sulfur (S) of 0.6% max air dried; phosphorous (P) of 0.05% max air dried; total moisture (TM) of 9.5% max as received; mean max reflectance of vitrinite of 1.20%. Impurities (sulfur, ash and moisture) will also be normalized on a $/mt basis using an assessment of the prevailing market quality discounts.

Cargo assessments will consider standard 10,000-14,000 mt hatch loads on standard 70,000-88,000 mt Panamax vessels, basis FOB Australia main ports (normalized to Hay Point port in Queensland); and CFR China main ports (normalized to Qingdao port in North China). Timing will be based on cargoes loading FOB Australia two calendar months from date of publication, and for delivery CFR China 30-75 days from date of publication.

These assessments will be published in Platts Metals Alert page 1051, Steel Markets Daily, Coal Trader International, International Coal Report, and Platts Dispatch. Please address any comments or questions to cokingcoal@platts.com.