SUBSCRIBER NOTE: Platts clarifies NEAT Coal Index calculation

S&P Global Platts would like to clarify the that the Northeast Asia Thermal Coal Index (Database Code: JKTCA00) or NEAT, which represents thermal coal cargoes with a calorific value of 5,750 kcal/kg NAR with 0.6% sulfur, 15% ash and 10% moisture, delivered 15-60 days forward to NE Asia ports on a CFR basis, with Kinnura in Japan as the basis port, is calculated using the following inputs:

The FOB Newcastle 5,500 NAR price [Database Code: AAVVB00] is used as the basis price to adjust the price for 5,750 NAR calorific value, to which is added the premium of 15% ash product, using the FOB Newcastle Ash Differential [Database Code: AAVVA00] as the basis.

Panamax freight rate from Australia's Newcastle port to Japan's Kinuura Port [Database Code: CINAJ00] is then added to calculate the NEAT Coal Index.

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