SUBSCRIBER NOTE: Platts to launch arbitrage assessments for China PLV, met coke indices

S&P Global Platts has decided to launch three arbitrage indicator assessments based on existing China Premium Low Vol and metallurgical coke indices, following market feedback.

Platts will launch the weekly price series from September 21, 2016.

The weekly assessments are:

1) A Premium Low Vol (PLV) Hard Coking Coal (HCC) CFR China (equivalent) assessment that would be a net-forward from the existing domestic China coking coal assessment, including various costs.

Following market feedback, Platts has ascertained market demand for greater visibility on the price differential between the PLV HCC CFR China assessment and its domestic China equivalent.

Its current domestic price assessment, on a DDP Tangshan basis, is published every Wednesday, while the seaborne PLV CFR China price assessment is published daily.

Platts DDP Tangshan assessment will be normalized to CFR China basis, normalizing for payment terms, additional transportation and logistics costs, exchange rate and specifications to reach a port-equivalent value.

The assessment will be published on an outright basis and as a price differential to the PLV HCC CFR China price on Wednesday.

The new assessment will be published on the same day as the weekly domestic China assessment, starting September 21, 2016.

2) A differential between the CFR Jingtang (equivalent) port stocks assessment and the PLV HCC CFR China assessment.

Following market feedback, Platts has ascertained market demand for greater visibility on the price differential between seaborne cargo prices and the port stock market.

The port stock (CFR Jingtang) assessment is published on Fridays, while the seaborne PLV CFR China price assessment is published daily.

The new assessment will be published every Friday, starting September 23, 2016.

3) A metallurgical coke Platts FOB North China (equivalent) assessment that would be a net-forward from the existing domestic DDP China coke assessment, including various costs.

Platts has ascertained market demand for greater visibility on the price difference between domestic coke and China export values.

Platts domestic coke assessment is published on a DDP Tangshan basis every Thursday.

This assessment would be normalized for payment terms, logistics cost, exchange rate and specifications to FOB North China basis.

The assessment will be published on an outright basis and as a price differential to the Platts 64/62% CSR Metallurgical Coke FOB North China assessment.

This will be published from September 22, 2016.

Please send any feedback to annalisa.jeffries@spglobal.com, edwin.yeo@spglobal.com and pricemethodology@spglobal.com.

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