SUBSCRIBER NOTE: Platts launches revised assessment process for Premium HCC FOB Australia

Platts has changed the method of assessing its Premium Hard Coking Coal FOB Australia assessments, effective April 1, 2016, on the back of observed changes in market trading patterns. This follows a subscriber note commencing a formal market consultation on this subject on December 14, 2015.

This will affect HCC Premium Low Vol FOB Australia (code: PLVHA00) and HCC Peak Downs Region FOB Australia (code: HCCGA00).

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 these FOB Australia assessments.

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.

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.