SUBSCRIBER NOTE: Platts proposes new US thermal coal export assessments

S&P Global Platts is proposing to launch three new assessments to reflect the value of US thermal coal for export from three terminals along the West Coast of the US and Canada, from October 18.

The proposed assessments would publish daily with the following specifications:

• FOB Long Beach, 6,000 kcal/kg NAR, 0.5% sulfur;

• FOB Oakland, 6,000 kcal/kg NAR, 0.5% sulfur;

• FOB Vancouver, 5,000 kcal/kg NAR, 0.5% sulfur;

The assessments would be based on trades, bids, offers and indications of market value. In the absence of transactional data, Platts would consider the economics of transportation and transloading, paired with Platts existing assessments for US thermal coal in the Rockies and a new Powder River Basin 9,400 Btu/lb assessment (see adjacent proposal note).

For FOB Long Beach, Platts would consider its existing Colorado 11,300 Btu/lb GAR, 0.8 lb SO2/MMBtu, weekly prompt-quarter assessment (CUAQ001), converted to kcal/kg NAR and adjusted for heat content, plus rail transportation and transloading costs, converted to $/mt.

For FOB Oakland, Platts would consider its existing Utah 11,500 Btu/lb GAR, 0.8 lb SO2/MMBtu, weekly prompt-quarter assessment (CUDQ001), converted to kcal/kg NAR and adjusted for heat content, plus rail transportation and transloading costs, converted to $/mt.

For FOB Vancouver, Platts would consider its new PRB 9,400 Btu/lb GAR, 0.8 lb SO2/MMBtu, weekly prompt-quarter assessment, converted to kcal/kg NAR and adjusted for heat content, plus rail transportation and transloading costs, converted to $/mt.

Conversions from Btu/lb GAR to Kcal/kg NAR would be applied using the factor of 1.8 Btu/lb to 1 kcal/kg, with the subtraction of 470 Btu/lb to compensate for the loss of heat content from GAR to NAR. The full formula would be Btu/lb GAR value minus 470 Btu/lb divided by 1.8. Heat adjustments would be made on a linear basis. Rail transportation costs would be provided on a quarterly basis by a third party, and transloading costs at each port will be assessed weekly by Platts.

The assessments would be published in Coal Trader, Coal Trader International and Global Coal Alert Page 360 from October 18.

Please address any questions or comments by September 13 to coal@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.