Singapore — globalCOAL announced Wednesday morning the launch of premium low-vol metallurgical coal (HCCLV) on its broking screen, effective October 9, 2019.
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The initial coal brands under HCCLV will be BMA's Saraji and Peak Downs, to be traded either as a single-named brand or deliverable at seller's option, according to globalCOAL.
In light of this announcement, market participants had different views, according to a survey by S&P Global Platts Wednesday.
"We're yet to understand more about this change on the screen, but it should be an interesting move that could potentially add liquidity to Peak Downs and Saraji outlets," said an Australia-based trader.
There were, however, some conservative views in the market. "This does not look like [something designed] for India. Saraji or Peak Downs are not a preferred product for Indian mills," said an Indian trader.
According to the Platts spot trade data, there were only 11 deals of Saraji or Peak Downs observed concluded on an FOB basis for 2019 so far. This compares to a total of 113 FOB deals observed in the spot market, the majority of which were premium mid-vol hard coking coals.
"The fact that PLVs like Saraji and Peak Downs has been more of a China-dominant product could mean little demand for such type of coals on the screen," said an international trader.
Prior to this announcement of HCCLV, all met coal trading on globalCOAL was for premium mid-vol products (HCCA), including Illawarra, Goonyella, Moranbah North, Oaky Creek, North Goonyella and others.
"Despite all the initial assumptions, at this stage I'm looking forward to it because it will help us understand the demand for PLV a bit better and the spread between PMV and PLV," an international trader told Platts.
globalCOAL also applies changes to its Standard Coal Trading Agreement (SCoTA) contract.
-- Jeffery Lu, firstname.lastname@example.org
-- Edited by Shashwat Pradhan, email@example.com