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

Fastmarkets proposes to amend the specifications of its premium hard coking coal indices to align more closely with the most prominent low-vol products traded in the spot market. These amendments will apply to both the fob DBCT and cfr Jingtang indices.

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.

To provide feedback on the proposed specification amendments and differential launches, or if you would like to provide price information by becoming a data submitter to Fastmarkets’ coking coal pricing, please contact Li Min by email at: pricing@fastmarkets.com. Please add the subject heading ‘FAO: Li Min, re: the price in question’.

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

What to read next
The publication of Fastmarkets’ US and Brazil pig iron price assessments for Friday Feb 23 were delayed because of an administrative error.
Fastmarkets adjusted its assessments for the stainless steel scrap 430 bundles, solids, consumer buying price, delivered mill Pittsburgh and the stainless steel scrap 409 bundles, solids, consumer buying price, delivered mill Pittsburgh effective Monday February 12.
Fastmarkets is inviting feedback from the industry on the pricing methodology for its iron ore indices, as part of its announced annual methodology review process.
Fastmarkets welcomes your feedback on the following action: Prices for Region 4 logs in Log Lines will be discontinued, as those prices are generated by a third party and we no longer use third party information. Region 4, or the “Inland Region” includes: You can find the current methodology for Log Lines here. To provide feedback […]
Random Lengths is inviting feedback from the industry on pricing methodologies for Random Lengths and Random Lengths International as part of its annual methodology review process.
Fastmarkets launches MB-CU-0513 copper cathode equivalent grade (EQ), cif Southeast Asia, $/tonne on Tuesday February 20.