Platts opens consultation on CFR India coking coal price assessments

Platts, part of S&P Global Commodity Insights, is opening a consultation to invite feedback on its CFR India coking coal price assessments in light of changing origin supply flows into the country.

Since 2010, Platts has been publishing CFR India assessments on a freight net forward basis to its corresponding FOB Australia assessments, reflecting the role of Australian imports in the Indian metallurgical coal market.

Over the past two years India has emerged as the largest global importer of coking coal. While continuing to import from Australia, India is now a major destination for cargoes of various origins including the US (7.6 million mt, or 14% of total imports in 2023), Russia (5.9 million mt/10%) and Canada (2.9 million mt/5%), according to Global Trade Analytics Suite data by S&P Global Market Intelligence.

In response to increasing demand for spot import price references for pulverized coal injection, Platts in August 2023 launched an open origin CFR India mid-vol PCI assessment as an alternative reference to its established freight net forward calculation: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/082123-platts-launches-new-open-origin-cfr-india-mid-vol-pulverized-coal-injection-daily-assessment

Preliminary market feedback also indicated interest in a CFR India assessment for premium hard coking coals that is separately assessed from the existing freight net forward calculation from FOB Australia. Other market feedback pointed to the continued relevance of FOB Australia-linked pricing for India imports.

Platts is seeking comments on how best to reflect this feedback in its CFR India methodology, including information and data on the following:

Specifications, including quality/coal brands, destination ports, timing and payment terms, that would be the most representative of the bulk of spot trading.

Volumes and origins of the grades of metallurgical coal imported by India on a spot basis.

Use of Platts existing CFR India net forward assessments in spot and term pricing

Platts additionally invites submission of high-quality data relevant to the India spot market for publication, in order to test representativeness of market information for various coal types.

High-quality data typically includes details such as counterparty, product quality, specifications, order sizes, dimensions, lead times and locational information.

Platts also welcomes feedback on other parameters in its assessment methodology not explicitly mentioned above.

Platts full Global Metallurgical Coal Specifications Guide can be found at: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Global_MetCoal.pdf

Platts assessment methodology is available here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Platts-Assessments-Methodology-Guide.pdf

Please send all feedback, questions or comments to pl_cokingcoal@spglobal.com and pricegroup@spglobal.com by April 15, 2024, including feedback on the timing of any changes resulting from this consultation.

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 make comments not marked as confidential available upon request.