Argus Media and McCloskey launch Asia Pacific coal index

UK-based publishing company Argus Media announced recently that the company and its Australian partner, The McCloskey Group, had launched a new coal price index, Newcastle Coal Index, to boost coal market liquidity in Asia-Pacific region.

Argus said the weekly coal index would provide a robust and acceptable benchmark of the physical coal market at Newcastle, Australia.

Argus Media and The McCloskey Group already provide the components in the world's most successful coal price index -- TFS API 2 (cif ARA) -- as well as providing price data for the TFS API 4 (fob Richards Bay).

?The Newcastle Coal Index will also provide the market with a new risk management tool, by providing a pricing benchmark with sufficient liquidity for traders to hedge risk. The new index will allow coal sellers to guarantee a large volume of sales by placing their product on a spot-related basis against the benchmark,? the company said in a statement.

The assessment specifications would be for coal available for loading up to 90 days forward, with a sulphur content of up to one percent and a calorific value of 6,700 kcal/kg GAD, the company added. (robert)