SUBSCRIBER NOTE: Platts launches coal freight netback series based on PHCC CFR China assessments

Platts launches freight netback values based on its prime hard coking coal CFR China assessments, effective April 1, 2016, which will be back-calculated to a FOB Australia basis. This is following positive market feedback with regards to these price series. This follows a proposal note published on this subject 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 under the daily relativities' table 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