Argus and IHS launch new API coal index in Asia-Pacific
Saturday, May 3 2014 - 01:44 AM WIB
The new API 12 coal price index will assess multi-origin, mid-quality coal imported to east India from South Africa, Indonesia, Australia and other exporters. The index will be launched today.
API 12 reflects 5,500 kcal/kg NAR (net as received) coal delivered to east India. Coal accounts for around 80pc of India's power generation, with demand growing by more than 10pc/yr. Thermal coal demand is also growing from cement makers and sponge iron producers as India embarks on massive infrastructure projects. Imports are expected to account for 21pc of overall Indian coal demand of 770mn t in the 2013/14 fiscal year, according to the Reserve Bank of India.
Indonesia supplied as much as 76pc of India's coal imports in the past three years while South Africa accounted for 19pc. Indonesian fob price references already exist for the 5,500 kcal/kg NAR grade, as well as API 3 for those of South African origin and API 5 for Australian origin.
All the Argus and IHS McCloskey indexes are calculated by averaging the relevant Argus and IHS coal price assessments. The methodologies used to derive these prices are available online at www.argusmedia.com/methodology and www.mccloskeycoal.com.
"We are pleased to be able to meet demand from market participants for an additional reliable, independent benchmark," Argus Media chairman and chief executive Adrian Binks said. "This is the latest in the API thermal coal index series, which 90pc of the world's internationally traded coal derivatives settle against."
"This is an exciting addition to the API benchmarks and underlines the markets changing focus towards 5,500 kcal/kg NAR products, particularly in Asia-Pacific," IHS Energy senior director John Howland said. "From Australia to China and Richards Bay to India, API benchmarks can be used to track and trade this increasingly vibrant market for 5,500 kcal/kg NAR thermal coals." (ends)