20 Jun 2024 | 02:18 UTC
Platts to launch Caval Ridge coking coal brand relativity assessment, discontinue relativities with lower spot liquidity
Following market feedback, Platts, part of S&P Global Commodity Insights, will launch daily brand relativity price assessments for Caval Ridge Coking Coal and discontinue existing brand relativities published for Lake Vermont, Middlemount Coking, Peak Downs North, and Poitrel Semi Hard, effective Sept. 2, 2024.
The new launch and discontinuations were first proposed on May 20, in a subscriber note available here:
https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/052024-platts-proposes-to-launch-caval-ridge-coking-coal-brand-relativity-assessment-discontinue-relativities-with-lower-spot-li
The publication of a daily Caval Ridge Coking Coal brand relativity assessment arises from increased liquidity observed for the coal in the spot market.
The brand relativity will be assessed on an FOB Australia basis. A CFR China basis calculation will also be published by adding the FOB Australia basis brand relativity assessment for the coal to the Platts spot Panamax freight rate from Australia to China.
The specifications will be as follows:
| Description | Type | Quality | Quantity | Incoterm, location | Timing | Payment | UOM |
| Hard Coking Coal Caval Ridge FOB Australia | Assessment | As per typical specifications | Min 30,000 mt | FOB Australia | Loading 15-60 days forward | L/C at sight | $/mt |
| Hard Coking Coal Caval Ridge CFR China | Calculation | As per typical specifications | Min 30,000 mt | CFR Qingdao, China | Delivered 20-75 days forward | L/C at sight | $/mt |
Platts takes a market survey approach to its assessments of brand relativities, evaluating the relativity of each brand as a percentage of Platts Premium Low Vol Hard Coking Coal FOB Australia (PLVHA00) assessment. The daily relativities are published as an outright value in dollars per metric ton.
Platts will also create symbols for the Caval Ridge relativities expressed as percentages of Platts Premium Low Vol Hard Coking Coal FOB Australia and CFR China assessments, and for all the other percentage expressions of existing coking coal brand relativities, backdate them to when they were first published, to enable more direct access to the data.
The discontinuation of the brand relativities for Lake Vermont, Middlemount Coking, Peak Downs North, and Poitrel Semi Hard stems from reduced liquidity for the coals in the spot market, with most, if not all cargoes for the brands sold via term contracts. The discontinuation of the Peak Down North relativity additionally reflects the April 2024 transfer of ownership of the Daunia mine, which was one of the key inputs to the Peak Downs North blended product.
The following symbols will be affected by the discontinuation of the brand relativity assessments:
| Description | Daily symbol | Monthly average symbol |
| Hard Coking Coal Peak Downs North FOB Australia | HCPNA00 | HCPNA03 |
| Met Coal Peak Downs North CFR China | MCBAJ00 | MCBAJ03 |
| Met Coal Lake Vermont CFR China | MCBAN00 | MCBAN03 |
| Met Coal Middlemount Coking CFR China | MCBAP00 | MCBAP03 |
| Met Coal Poitrel Semi Hard CFR China | MCBAQ00 | MCBAQ03 |
Platts coking coal brand relativities are published in Platts Connect, SBB Steel Markets Daily, Coal Trader International, Platts Steel Alert page STL1064, and in the Platts price database.
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.