Platts proposes new open origin CFR India Mid-Vol Pulverized Coal Injection assessment

Platts, part of S&P Global Commodity Insights, proposes to launch a new open origin daily assessment for CFR India Mid-Vol Pulverised Coal Injection (PCI), effective Aug. 21, following observation of increasing demand for spot import prices as the India market evolves amid changes in global trade flows.

With India developing into a major spot destination for metallurgical coal in Asia for various origins of metallurgical coal, following trade flow changes after major geopolitical events, Platts has received increased feedback from market participants about the relevance of capturing PCI flows beyond the Australia exports reflected in the existing net forward assessment.

India imported over 6.4 million tons of coal under HS Code 27011990 from January to May 2023, up over 76% from the same period in 2022, according to India customs data. In 2022, India imported over 11.7 million tons under this coal classification.

Based on the customs data, import sources into India have also changed substantially since late 2022. Australia was the largest exporter to India for coals under HS Code 2701190 at around 75% in 2021 and 47% in 2022. From January to May 2023, Russia became the top exporter to India at 47% while Australia was second at 34%. Russian imports into India rose from 18% in 2021 to 40% in 2022. Export volumes from Singapore and United Arab Emirates into India also rose rapidly in 2022 and 2023, as compared with 2021.

The proposed specifications for the new assessment are:

Assessment Name: Mid-Vol PCI CFR India Open Origin

Quality: 19% Volatile Matter, 10% Ash, 0.5% Sulfur, 78 Hardgrove Grindability Index, 10% Total Moisure, 1 Crucible Swelling Number

Quantity: Minimum 30,000 mt

Location: Delivered East India, Paradip

Laycan Timing: Delivered 20 to 65 days forward from publication date

Unit of Measure: $/mt

Time Stamp: Singapore Publishing Schedule, Market Close 5:30 pm Singapore time daily

Platts is seeking feedback on payment terms relevant to the proposed assessment.

Currently, Platts publishes a CFR India Mid-Vol PCI daily price (Symbol: MCVAI00) calculated on a net forward basis to the benchmark FOB Australia Mid-Vol PCI daily spot assessment (Symbol: MCLAA00).

Under this proposal, MCVAI00 and its associated monthly average (Symbol: MCVAI03) will remain in place.

Platts Metallurgical Coal assessments are published in SBB Steel Markets Daily, Coal Trader International, Coal EU Daily and Coal US Daily on the real-time Platts Steel and Raw Materials Alert, and in Platts Market Data.

Details on Platts Metallurgical Coal assessments can be found here: https://www.spglobal.com/commodityinsights/en/our-methodology/methodology-specifications/coal/metallurgical-coal-methodology

Platts invites feedback on this proposal to PL_CokingCoal@spglobal.com and PriceGroup@spglobal.com by August 11, 2023.

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 to the public upon request.