SUBSCRIBER NOTE: Platts launches new thermal coal netbacks

Effective October 3, S&P Global Platts revised the methodology for the thermal coal netback for FOB US East Coast and launched two new netbacks reflecting the value for thermal coal FOB US Gulf Coast and FOB Vancouver.

For the FOB US East Coast netback (Platts symbol COUSC00), Platts changed the heat content from 6,500 NAR kcal/kg to 12,500 Btu/lb GAR to better reflect available US domestic thermal coal for export. In addition, Platts will make the heat conversion from the delivered price minus freight. The heat conversion previously was made from the delivered price.

FOB US Gulf Coast (basis 11,500 Btu/lb GAR, 2.9% sulfur) shows the price of thermal coal compared to CIF ARA coal (basis 6,000 kcal/kg NAR, 1% sulfur) minus the Panamax freight rate from Mobile, Alabama, to Rotterdam, adjusted for heat and sulfur and converted to $/st. The Platts symbol is COUGU00.

The sulfur adjustment is based on a new daily assessment that will publish alongside the FOB US Gulf Coast netback. The sulfur assessment will reflect the value of one-tenth of one percent of sulfur per short ton for thermal coal destined for Northern Europe. The Platts symbol is COPAP00.

FOB Vancouver (basis 8,800 Btu/lb GAR, 0.8% sulfur) shows the price of thermal coal compared to CIF Japan coal (basis 6,080 kcal/kg NAR, 1% sulfur) minus the Panamax freight rate from Roberts Bank, British Columbia, to Japan, adjusted for heat and converted to $/st. The Platts symbol is COVCU00.

The netbacks will publish daily in Coal Trader and Coal Trader International, and Global Coal Alert Page 230 and Market Data category CO.