04 Jun 2024 | 10:10 UTC

Platts to discontinue FOB Australia metallurgical coal penalties, premia differentials

Platts, part of S&P Global Commodity Insights, will discontinue publication of its FOB Australia metallurgical coal penalties and premia differentials, effective Sept. 2.

Platts first sought feedback on the proposed discontinuation 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

The feedback period for the proposal was extended to May 17 in a subscriber note published April 1:

https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/040124-platts-extends-feedback-period-for-proposal-to-discontinue-fob-australia-metallurgical-coal-penalties-premia-differential

The discontinuation reflects a shift in the way the market values spot cargoes of premium hard coking coal.

Market feedback indicates that participants consider differences in quality between coals in terms of aggregate brand relativities, for example, to the Platts PLVFOB Australia price assessment, rather than by applying penalties and premia for individual specification differences.

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

The assessments and calculations that will 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 /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Global_MetCoal.pdf

Please send comments and questions to pl_cokingcoal@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.