01 Apr 2024 | 08:49 UTC

Platts extends feedback period for proposal to discontinue FOB Australia metallurgical coal penalties, premia differentials

Platts, part of S&P Global Commodity Insights, is extending to May 17, 2024, the feedback period for its proposal to discontinue FOB Australia metallurgical coal penalties and premia differentials.

The proposed implementation date of July 1 will also be revised to a later date, in line with the extended feedback period.

Platts first sought feedback on its proposal to discontinue FOB Australia metallurgical coal penalties and premia differentials in a subscriber note published Jan. 8:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/010824-platts-proposes-to-discontinue-fob-australia-metallurgical-coal-penalties-and-premia-differentials

Penalties and premia differentials are currently published as percentages of the Platts Premium Low Vol FOB Australia assessment.

The proposal arises from a shift in the way the market values spot cargoes. Initial feedback indicates that participants consider differences in quality between coals in terms of aggregate brand relativities, for example, to the Platts PLV FOB Australia price assessment, rather than by applying penalties and premia for individual specifications.

Platts US low-vol HCC penalties and premia would continue to be published under this proposal, reflecting a wider range of US coal specifications such as CSR and sulfur.

The assessments and calculations that would be affected are:

Symbol Assessment
CPCSA00 CSR per 1% as a percentage of PLV FOB Australia
CPCSP00 CSR per 1% PLV $/mt
CPVPA00 VM per 1% as a percentage of PLV FOB Australia
CPVMP00 VM per 1% PLV $/mt
CPTPA00 TM per 1% as a percentage of PLV FOB Australia
CPTMP00 TM per 1% PLV $/mt
CPAPA00 Ash per 1% as a percentage of PLV FOB Australia
CPPAP00 Ash per 1% PLV $/mt
CPSPA00 Sulfur per 0.1% as a percentage of PLV FOB Australia
CPSPV00 Sulfur per 0.1% PLV $/mt

The assessments appear in Platts Connect, Steel Markets Daily, Coal Trader International, on fixed pages MW0205 of Platts Metals Alert, ST0205 of Platts Steel Alert, GC1051 of Platts Global Coal Alert, and in the Platts price database.

Detailed specifications of Platts metallurgical coal assessments can be found at https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_metcoal.pdf

Platts invites feedback on this proposal to pl_cokingcoal@spglobal.com and pricegroup@spglobal.com. Platts additionally invites feedback on the timeline for implementing the proposed discontinuation.

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.