Platts to introduce MOC timing, increment guidelines for PLV FOB Australia metallurgical coal

Platts, part of S&P Global Commodity Insights, will introduce timing and increment guidelines for its premium low vol (PLV) FOB Australia metallurgical coal Market on Close (MOC) assessment process, effective June 19.

The guidelines will apply to any firm bids or offers reported directly to Platts for publication in the PLV FOB Australia assessment process.

The Platts MOC timing and increment guidelines are a key component of its assessment methodology, essential to an orderly and transparent publishing process.

The guidelines aim to bring greater clarity and transparency to the assessment process amid increased market interest in submitting higher quality data for consideration in the PLV FOB Australia price assessment.

When determining a final market assessment, Platts gives the highest priority to fully verifiable and transparent market information from entities that have been reviewed for participation in the MOC process.

The new timing and increment guidelines for the PLV FOB Australia metallurgical coal MOC process will also apply to any other firm bids or offers reported directly to Platts for publication in the assessment process.

MOC TIMING & INCREMENTS: Effective June 19, to ensure sufficient time for all market information to be tested, buyers and sellers must submit any firm, direct bids and offers with complete information to Platts editors by phone, instant messenger or email before 4:45 pm Singapore time.

Based on market feedback, this cutoff time has been revised from the initially proposed 5 pm Singapore time.

Only bids and offers that are raised or lowered, respectively, in reasonable increments are considered for the assessment.

Counterparties can improve the price of their published bids or offers every five minutes, by a minimum increment of $1/mt and a maximum increment of $2/mt.

No price changes are allowed in the final five minutes of the MOC process that concludes at 5:30 pm Singapore time.

Buyers and sellers may withdraw their bids or offers at any time during the MOC process.

Counterparties must clearly communicate their expression of interest to trade a published bid or offer to Platts editors.

Platts may notify the market of any adjustment to its timing and incrementability guidelines in the event of market volatility or a disruptive event.

The Metals MOC Timing and Increment Guidelines can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/metals/metals-moc-timing-and-increment-guidelines.

Platts first proposed the guidelines on Dec. 9 in a subscriber note, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/120922-platts-proposes-to-introduce-moc-timing-increments-guidelines-for-plv-fob-australia-metallurgical-coal

Platts extended the feedback period for the proposal on Jan. 6 in a subscriber note, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/010623-platts-extends-feedback-period-for-proposal-to-introduce-moc-timing-increments-guidelines-for-plv-fob-australia-metallurg

Platts informed the market of a revision to the implementation date on Feb. 27 in a subscriber note, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/022723-platts-continues-to-review-feedback-on-proposed-moc-timing-increments-guidelines-for-plv-fob-australia-metallurgical-coal

SPECIFICATIONS: Firm, direct bids or offers will be published in line with Platts existing specifications for PLV FOB Australia, available here: https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_metcoal.pdf.

MOC Participation Review: Platts applies objective criteria to review entities that wish to participate in the reviewed MOC process and monitors all MOC participants to ensure that input data provided by these entities reflect typical market trading practices and standards.

For more information on the counterparty review process, please visit https://www.spglobal.com/commodityinsights/en/our-methodologies/market-on-close.

Entities that wish to participate in the MOC should contact market_integrity_review@spglobal.com.

Please send questions and comments 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.