Aug. 14, 2014
/PRNewswire/ -- Platts, a leading global energy, petrochemicals, metals and agriculture information provider, has expanded its suite of pricing references for
with the launch of two new price assessments for thermal coal imported to, and exported from the port city of Qinhuangdao in
Known as China Coal Index (CCI) 2 and China Coal Index (CCI) 7, the new
-focused assessments are jointly launched by Platts and its partner
Energy Consulting Company, a leading coal market information provider in
. With this offering, the partnership now provides four thermal coal pricing references for the world's largest coal consuming nation. In
the world's first Chinese-led, independent and editorially-assessed thermal coal prices for the Chinese market.
"We're pleased to answer the market's call for an independent source of price discovery and with a frequency that facilitates better business decisions domestically and internationally," said
, Platts editorial director of coal. "This expanded China Coal Index offering, which reflect coals with varying heat content, brings a level of transparency and insight into the domestic coal market that previously didn't exist."
The new daily assessments are:
- China Coal Index (CCI) 2 – Domestic Chinese thermal coal of the net-as-received grade of 5,000 kilocalories per kilogram (kcal/kg), on a Free-on-Board (FOB) basis from Qinhuangdao ports, seven to 45 days forward. It is assessed in Chinese yuan renminbi (RMB) per metric ton, with a U.S. dollar conversion rate, including Value Added Tax.
- China Coal Index (CCI) 7 – Thermal coal of the net-as-received grade of 4,700 kcal/kg, on a Cost-and-Freight (CFR) basis delivered to south China, 30-60 days forward. It is assessed in U.S. dollars per metric ton, with a RMB conversion rate, excluding Value Added Tax.
is a major buyer of medium-grade thermal coal with caloric value of 4,700 kcal/kg. Coal is commonly purchased on a delivered basis in
and CCI 7 reflects the commercial and merchantable value of imported cargoes.
At the same time,
is the leading producer of 5,000 kcal/kg coal. The import volume of 4,700 kcal/kg coal is often affected by the price movements of the domestically mined coal.
"Having both assessments, the CCI 2 and the CCI 7, through a single source provides an at-a-glance view of price spreads and arbitrage opportunities," said O'Connell.