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

Platts, part of S&P Global Commodity Insights, will launch thermal coal net forwards, effective April 14, basis its Indonesian FOB price assessment.

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. Typically sold on an FOB basis, there is a growing informational need to understand the full CFR value of these coals and the competitive arbitrage that is developing between India and China.

Specifically, the net forwards will be basis the existing daily 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(opens in a new tab)) 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 costs are based on the following routes and Panamax assessments, and the methodology can be found here: (https://www.spglobal.com/commodityinsights/PlattsContent/_assets/_files/en/our-methodology/methodology-specifications/global_freight.pdf(opens in a new tab)).

The delivered prices will be based on the Panamax vessel with a minimum quantity of 70,000 mt.

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 be published following 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 17:30 Singapore time.

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

This decision follows a proposal note published March 26: Platts proposes Kalimantan 3,400 kcal/kg GAR thermal coal net forwards | S&P Global(opens in a new tab)

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