Platts proposes Kalimantan 3,400 kcal/kg GAR thermal coal net forwards

Platts, part of S&P Global Commodity Insights, is seeking feedback on a proposal to launch thermal coal net forwards, effective April 14.

Platts has observed an increasing volume of coal being delivered to India and China from Indonesia's Kalimantan region. These coals are typically low in sulfur and used for blending purposes and sold on a FOB basis. There is a growing need to understand the full CFR value of these coals and the competitive arbitrage developing between India and China.

The net forwards will be basis the daily FOB Kalimantan 3,400 kcal/kg GAR thermal coal assessment (THCOK00) (https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_coal.pdf) plus freight costs to derive CFR values for a cargo delivered to West Coast India, East Coast India and South China, 30-60 days forward.

The freight cost are based on the following routes and Panamax assessments and that methodology can be found here (https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_freight.pdf). Other destination, routes and vessel class freight cost information may be normalized from these routes.

Indonesia (E. Kalimantan) To China (Guangzhou) (CRYAE00)

Indonesia (S. Kalimantan) To India W. (Mundra) (CSAKP00)

Indonesia (S. Kalimantan) To India E. (Krishnapatnam) (CIIEI00)

The new price assessments would follow the Singapore publication schedule and would be based on the latest information sourced from the market up to the close of the Market on Close assessment process at 1730 Singapore time.

The new daily assessments will be published in Platts Coal Trader International, fixed pages EP0911, GC0410, GC0412, GC0425, PEP0910.

Please send all comments, feedback and questions by March 12 to coal@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if they are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make those not marked as confidential available upon request.