09 Jun 2023 | 15:45 UTC

Platts to discontinue FOB Vancouver 5,000 kcal/kg coal assessment, 8,800 Btu/lb netback effective Aug 21

Platts, part of S&P Global Commodity Insights, has decided to discontinue its existing FOB Vancouver thermal coal price assessments below, effective Aug. 21, 2023.

The decision was made following feedback and market consultation resulting from a proposal published May 23, 2023, which can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/052323-platts-proposes-to-discontinue-fob-vancouver-5000-kcalkg-assessment-and-8800-btulb-netback-effective-aug-21-2023

1. FOB Vancouver 8,800 Btu/lb netback (COVCU00)

2. FOB Vancouver 5,000 kcal/kg NAR assessment (CTVCA00)

Both Powder River Basin grades no longer reflect coals exported from Western Canada.

At the same time, Platts has announced in a subscriber note that can be found here, https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/050923-platts-proposes-to-launch-fob-vancouver-5750-kcalkg-nar-netback, that it intends to launch a new FOB Vancouver thermal coal assessment effective June 28, 2023, based on a freight netback for thermal coal delivered CFR Northeast Asia from any source.

The netback would reflect the price of North American thermal coal compared to Platts NEAT minus the Panamax freight rate from Roberts Bank, British Columbia, to Japan, in dollars per metric ton, based on loading 15-60 days forward from the date of publication.

The netback would normalize calorific values from 5,400 kcal/kg NAR to 6,200 kcal/kg NAR and cargo volumes at 75,000 mt plus/minus 10%, with a maximum sulfur content of 1%.

The assessment would follow the US daily publishing schedule, reflecting the market as of 11:30 am ET.

Please send all comments, feedback, and questions to coal@spglobal.com and pricegroup@spglobal.com, by Aug. 18, 2023. 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.