What is the FOB Newcastle 5,500 NAR coal price assessment?
The Platts FOB Newcastle 5,500 NAR assessment is a daily 7-45 day forward price assessment for higher-ash thermal coal exported out of the port of Newcastle on Australia's eastern coast and typically shipped to China. The term ‘5,500 NAR' refers to the net calorific value (heating value) of the coal in kilocalories per kilogram.
Platts also publishes the first ever daily ash assessment which is a normalization tool for use within the 17-23% ash range assessed.
The new price and ash differential assessments provide thermal coal producers, power producers, cement manufacturers, coal traders and ship brokers with an independent, transparent source of open-marker spot prices for lower-grade export Australian thermal coal.
The FOB Newcastle 5,500 NAR and ash differential assessments are available in these Platts services.
FOB Newcastle 5,500 NAR is an important assessment, reflecting a shift in spot market liquidity from the industry standard FOB Newcastle 6,300 kcal/kg GAR quality coal bought mainly by Japanese utilities to lower calorific value, higher ash coal preferred by Chinese, Korean and Taiwanese end-users.
As a result, Australian coal producers reconfigured their product offerings to align with market demand, and Newcastle spot cargoes have been trading in volume on a 5,500 kcal/kg NAR basis since mid-2011.
In addition, Platts has determined through extensive market engagement that assessments of Newcastle spot cargoes should reflect a shorter delivery period than the industry standard 90-day window and typical of the changing buying behavior exhibited by China, Korea and also India.