PRICING NOTICE: Proposal to amend premium hard coking coal specs, launch two new grade differentials

In addition to these, Fastmarkets also proposes to launch two grade-differential indices to reflect the value of mid-vol coal on both fob Australia and cfr China basis. These will be quoted on a daily basis as differentials ($/tonne) against Fastmarkets’ fob DBCT and cfr Jingtang premium hard coking coal indices.

Both of these proposed changes are in response to market feedback requesting more precise reflection of the value differentiation between premium low-vol and premium mid-vol product types.

The proposed amendments to the quality section of the specifications of Fastmarkets’ indices for (MB-COA-0003) premium hard coking coal, fob DBCT, $/tonne and (MB-COA-0005) premium hard coking coal, cfr Jingtang, $/tonne are as follows:
CSR base 70%
Volatile matter (ad) base 19.00%
Ash (ad) base 10.50%
Sulfur (ad) base 0.62%
CSN/FSI base 9.0
TM (ar) base 10
Mean max reflectance base 1.52%
Phosphorus 0.040%
Max fluidity base 180 ddpm
Physical Size: <50mm

The current quality specifications are:
CSR base 71%, min 67%;
Volatile matter (ad) base 21%, range 18-25%;
Ash (ad) base 9.50%, max 11%;
Sulfur (ad) base 0.50%, max 1.10%;
CSN/FSI base 8, min 7;
TM (ar) base 10%;
Mean max reflectance base 1.35%, range 1.10-1.60%;
Max fluidity base 500ddpm, min 40ddpm.
Physical Size: <50mm

Fastmarkets also proposes to launch premium fob Australia and cfr China mid-volatile-matter hard coking coal differentials with the following specifications:
CSR base: 67%
Volatile matter (ad) base 23.50%
Ash (ad) base 8.90%
Sulfur (ad) base 0.52%
CSN/FSI base 8.5
TM (ar) base 10
Mean max reflectance base 1.20%
Phosphorus 0.025%
Max Fluidity base 1100 ddpm
MMR: 1.20
Physical Size: <50mm

The consultation period for these proposals starts from Friday October 23 and will end on Sunday November 22. These proposals, subject to market feedback, will be implemented on December 1.