SUBSCRIBER NOTE: Platts to adjust daily OTC coal methodology

Following industry consultation, S&P Global Platts will adjust the methodology for assessing the front-month price for its four benchmark US physical thermal coal assessments in the daily over-the-counter thermal coal market to increase transparency.

Essential to the proposed adjustment is an emphasis on using only published market data in the assessment process; that such data has been tested in the market for a reasonable amount of time; and that market data is submitted in a timely manner.

Platts will publish an initial market value at 2 pm Eastern for the front-month for the following four benchmark assessments: CAPP barge OTC, CAPP Rail (CSX) OTC, PRB 8,800 OTC and Illinois Basin 11,800 OTC. The initial market value will be based on published data heard through 2 pm, and would include bids, offers, trades, relevant indications of market value, expressions of interest and movements in related markets. All relevant, confirmed bids, offers and trades heard in the market through 2pm will be published on Platts Global Coal Alert, IM and email.

From 2 to 2:30 pm Eastern, Platts will continue to gather and publish market data, with the final assessments based on published market data that has been tested in the market and is determined to reflect prevailing value at 2:30 pm.

Platts may not consider any data gathered after 2:30 pm as relevant for the four indicated assessments.

Outstanding firm bids and offers that disprove traded levels and are available to the broad market as of 2:30 pm Eastern will take precedence over trades concluded earlier in the assessment process. For example, bids that are available at the close above previously traded levels, or offers that are available to the market below previously traded levels will be viewed as strong indications of value.

When no confirmed bid, offer or transaction data or movement in related markets is heard after 2 pm, Platts will base its assessments on the initial market values which have been made available and tested in the market from 2 pm.

The adjustments will take effect October 26, 2017, and will affect the following products:

CAPP Barge OTC: CTNM001, CTIM001, CTNOM01 CAPP Rail (CSX) OTC: CAKM001, CTJM001, CAKOM01 PRB 8,800 OTC: CTAM001, CTKM001, CTAOM01 Illinois Basin 11,800 OTC: CTPM001, CTPAA03

Please address any questions or comments to coal@spglobal.com and pricemethodology@spglobal.com.