Amendment to Fastmarkets’ Coking Coal Index methodology

Following a one-month consultation, Fastmarkets has adjusted its coking coal index methodology to increase transparency by incorporating data from physical trading platforms.

This follows the proposal, on December 5, 2022 to refine the methodology by directly incorporating physical trading platform data into Fastmarkets’ coking coal indices calculation because this data is transparent and underpins standard terms and conditions.

Feedback indicates that market participants welcome the proposal because it increases the transparency of Fastmarkets’ coking coal indices through the consistent usage of transparent data.

With the adjustment to the methodology, Fastmarkets will now directly incorporate data from the globalCOAL physical trading platform in its coking coal index calculations. Transaction data received from globalCOAL will be entered into both the buy-side sub-index and sell-side sub-index, reflecting the balanced nature of the ownership of the platform. The data entered will also be subject to weighting of tonnages, built-in outlier mechanisms and editorial judgment to ensure a representative index at the end of the calculation period.

The methodology adjustment will be applied to the following coking coal indices:

The methodology adjustment will take effect on Tuesday January 10, 2023.

To provide feedback on this proposal, or if you would like to provide price information by becoming a data submitter to these prices, please email pricing@fastmarkets.com. Please add the subject heading “FAO: Jane Fan/Paul Lim, re: Coking Coal Index methodology.”

To see all of Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/about-us/methodology 

What to read next
The proposal follows market feedback and data collected by Fastmarkets, which suggested that the price assessment is not a major price benchmark or key reference for market participants. Specifically, Fastmarkets is proposing to discontinue: MB-STE-0164 Steel wire rod (mesh quality) domestic, ex-whs Eastern China, yuan/tonneQuality: Q235B, diameter 6.5-10mmQuantity: 40-1,000 tonnesLocation: Ex-warehouse ShanghaiTiming: SpotUnit: RMB/tonnePayment terms: […]
The publication of Fastmarkets’ MB-CO-0021 Cobalt hydroxide payable indicator, min 30% Co, cif China assessment on Wednesday December 12 was delayed because of an approver error. Fastmarkets’ pricing database has been updated.
Fastmarkets’ iron ore DR-grade pellet premium indicator was published earlier than scheduled due to an error on Wednesday December 11.
The publication of Fastmarkets’ Japan export steel scrap assessments for Wednesday December 11 was delayed because of a reporter error. Fastmarkets’ pricing database has been updated.
The change in frequency, which takes place from Wednesday December 11, is due to inactive spot liquidity and low volatility in prices. The new specifications are listed below, with the amendment of price frequency in italics: MB-GRA-0043 graphite electrodes, high power, fob China, $ per tonneQuality: 350-450mm diameterQuantity: Min 20 tonnesLocation: FOB ChinaTiming: SpotPublication: Monthly, first Wednesday […]
The publication of Fastmarkets’ price assessments for MB-SN-0011 tin Grade A min 99.85% ingot premium, ddp Midwest US, $/tonne; MB-SN-0036 tin 99.85% ingot premium, in-whs Baltimore, $/tonne; and MB-ZN-0005 zinc SHG min 99.995% ingot premium, ddp Midwest US, US cents/lb for Tuesday December 10 was delayed due to an editor error.