SUBSCRIBER NOTE: Platts proposes several coal price assessment discontinuations

In an effort to better align its thermal coal assessments with the market, S&P Global Platts is proposing to discontinue the bulk of its physical forward assessments for thermal coal in order to concentrate on spot markets.

The proposed discontinuation would affect both the daily physical OTC market as well as the weekly price survey of the traditional physical market.

In addition, Platts proposes to discontinue the daily Illinois Basin 11,500 OTC assessment as well as four of the weekly price assessments in the traditional physical market: the three Central Appalachia compliance coal (1.2 lbs SO2/MMBtu) assessments and the Colorado 11,000 Btu/lb, FOB rail assessment.

Daily Physical OTC Forwards Assessments

Platts proposes to discontinue most of its forward assessments for the daily physical OTC thermal coal market, but will retain the prompt month and prompt quarter assessments. As a result, physical forward assessments for all other periods would be discontinued.

The proposed changes would affect the following assessments (listed with the relevant codes):

CAPP Barge OTC: CTNM002, CTNQ002, CTNQ003, CTNY001 CAPP rail (CSX) OTC: CAKM002, CAKQ002, CAKQ003, CAKY001 PRB 8,800 OTC: CTAM002, CTAQ002, CTAQ003, CTAY001 PRB 8,400 OTC: CTBM002, CTBQ002, CTBQ003, CTBY001 IB 11,800 OTC: CTPM002, CTPQ002, CTPQ003, CTPY001

IB 11,500 OTC

In addition, due to low liquidity, Platts proposes to discontinue its daily physical assessment for Illinois Basin 11,500 OTC coal and will instead launch a weekly price to reflect the value for high chlorine Illinois Basin 11,500 Btu/lb, 5 lbs SO2/MMBtu, FOB barge coal (see accompanying subscriber note).

The proposed discontinuation would affect the following assessments (listed with the relevant codes):

Daily Physical OTC Forward Assessments IB 11,500 OTC: TCIM001, TCIM002, TCIQ001, TCIQ002, TCIQ003, TCIY001

OTC Broker Index Illinois Basin 11,500 Btu/lb OTC: CTOBM01, CTOM001, CTNAS03, CTOBQ01, CTOQ001, CTNAS05

Weekly Price Survey, Traditional Physical Market

In the traditional weekly market, Platts proposes to discontinue most of its physical forward assessments, but will retain the prompt quarter assessments.

The proposed changes would affect the following assessments (listed with the relevant codes):

Northern Appalachia Pittsburgh Seam, 13,000 Btu/lb, 3 lbs SO2/MMBtu, FOB Rail: CPAQ002, CPAQ003, CPAY001 Pittsburgh Seam, 13,000 Btu/lb, 4 lbs SO2/MMBtu, FOB Rail: CNDQ002, CNDQ003, CNDY001 Upper Ohio River, 12,500 Btu/lb, 6+ lbs SO2/MMBtu, FOB Barge: CNEQ002, CNEQ003, CNEY001 Central Appalachia CAPP barge physical, 12,000 Btu/lb, 1.67 lbs SO2/MMBtu, FOB Barge: CNNQ002, CNNQ003, CNNY001 CAPP rail (CSX) physical, 12,500 Btu/lb, 1.6 lbs SO2/MMBtu, FOB Rail (CSX): CAEQ002, CAEQ003, CAEY001 Thacker/Kenova, 12,500 Btu/lb, 1.5 lbs SO2/MMBtu, FOB Rail (NS): CAGQ002, CAGQ003, CAGY001 Illinois Basin Illinois Basin, 11,800 Btu/lb, 5 lbs SO2/MMBtu, FOB Rail: CIAQ002, CIAQ003, CIAY001 Illinois Basin, 11,800 Btu/lb, 5 lbs SO2/MMBtu, FOB Barge: CIJQ002, CIJQ003, CIJY001 Illinois Basin, 11,500 Btu/lb, 5 lbs SO2/MMBtu, FOB Barge: CIEQ002, CIEQ003, CIEY001 Illinois Basin, 11,000 Btu/lb, 5 lbs SO2/MMBtu, FOB Barge: CICQ002, CICQ003, CICY001 Powder River Basin PRB, 8,800 Btu/lb, 0.8 lbs SO2/MMBtu, FOB Rail: CRAQ002, CRAQ003, CRAY001 PRB, 8,400 Btu/lb, 0.8 lbs SO2/MMBtu, FOB Rail: CRBQ002, CRBQ003, CRBY001 Rocky Mountains Colorado, 11,700 Btu/lb, 0.8 lbs SO2/MMBtu, FOB Rail: CUAQ002, CUAQ003, CUAY001 Utah, 11,500 Btu/lb, 0.8 lbs SO2/MMBtu, FOB Rail: CUDQ002, CUDQ003, CUDY001

Weekly Price Survey discontinuations

In addition, Platts is proposing to discontinue four of its thermal coal assessments listed in the Weekly Price Survey, Traditional Physical Market table. Due to evolving market conditions, Platts believes there are no longer appreciable markets to accurately assess the following products (listed with the relevant codes):

Central Appalachia Big Sandy/Ohio River, 12,000 Btu/lb, 1.2 lbs SO2/MMBtu, FOB Barge: CAIQ001, CAIQ002, CAIQ003 and CAIY001. Big Sandy/Kanawha, 12,500 Btu/lb, 1.2 lbs SO2/MMBtu, FOB Rail (CSX): CAFQ001, CAFQ002, CAFQ003 and CAFY001. Thacker/Kenova, 12,500 Btu/lb, 1.2 lbs SO2/MMBtu, FOB Rail (NS): CAHQ001, CAHQ002, CAHQ003 and CAHY001. Rocky Mountains Colorado, 11,000 Btu/lb, 0.8 lbs SO2/MMBtu, FOB Rail: CUEQ001, CUEQ002, CUEQ003, CUEY001.

The proposed discontinuations would take effect January 2, 2017.

Please address any questions or comments by September 1 to coal@spglobal.com and pricegroup@spglobal.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.