SUBSCRIBER NOTE: Platts to launch coal freight netback based on CFR China

Platts will launch freight netback values based on its prime hard coking coal CFR China assessments, which will be back-calculated to a FOB Australia basis.

Following positive market feedback, Platts will bring forward the launch date to April 1, 2016. This follows a proposal note published March 2, 2016.

The freight netback value will be calculated by taking the HCC Premium Low Vol CFR China assessment (code: PLVHC00), less the Platts daily Panamax spot freight rate from Hay Point, Australia, to Qingdao, China (code: CDBFA00). The same method will be used to calculate the HCC Peak Downs Region CFR China assessment, netting it back to a FOB Australia basis.

This new netback series will complement Platts existing assessments of international hard coking coal trade. The freight netback value will appear in Platts' SBB Steel Markets Daily publication as well as in Platts Market Data.

As China's imports of premium hard coking coal have waned in recent years, exports from Australia to other countries have increased. Nevertheless, China remains an important bellwether for international hard coking coal trade, making a freight netback value of high analytical and comparative value for bids, offers and transactions concluded on an FOB Australia basis.

Please address any further feedback or questions to: Annalisa Jeffries (annalisa.jeffries@platts.com; Edwin Yeo (edwin.yeo@platts.com) with a cc to 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.