New York (Platts)--9Mar2010/315 pm EST/2015 GMT
Following industry consultation, Platts has decided to launch daily spot
market price assessments of metallurgical coal starting with hard coking coal
basis FOB Australia and CFR China. The launch date for these new assessments
is March 15, 2010. These assessments will reflect the values of typical
shipments loading in Australia for any destination, and for delivery into
China from any potential source each business day. Platts will also publish
daily a dry bulk freight assessment between China and Australia as a guide to
normalization, reflecting that major trade route. Close-of-market data for
assessments will be 18:30 Singapore time (1030 GMT).

Hard coking coal grades with the following specifications will be included in
the assessment process: coke strength after reduction (CSR) of 50% minimum;
volatile matter (VM) of min 17.5-34.0% maximum air dried; crucible swell
number (CSN) of 5.5 min; ash of 10.5% max air dried; sulfur (S) of 1.0% max
air dried; phosphorous (P) of 0.08% max air dried; total moisture (TM) of
10.5% max as received; maceral composition vitrinite of 48-80%; mean max
reflectance of vitrinite of 0.90-1.65%. 

Spot cargoes within these quality ranges will be normalized to the following
published Platts specification basis representing the typical "target box" of
blended coking coals typically sought by blast furnace operators in the
Asia-Pacific region: coke strength after reduction (CSR) of 64% minimum;
volatile matter (VM) of min 25.5% maximum air dried; crucible swell number
(CSN) of 7.5 typical; ash of 9% max air dried; sulfur (S) of 0.6% max air
dried; phosphorous (P) of 0.05% max air dried; total moisture (TM) of 9.5% max
as received; mean max reflectance of vitrinite of 1.20%. Impurities (sulfur,
ash and moisture) will also be normalized on a $/mt basis using an assessment
of the prevailing market quality discounts.

Cargo assessments will consider standard 10,000-14,000 mt hatch loads on
standard 70,000-88,000 mt Panamax vessels, basis FOB Australia main ports
(normalized to Hay Point port in Queensland); and CFR China main ports
(normalized to Qingdao port in North China). Timing will be based on cargoes
loading FOB Australia two calendar months from date of publication, and for
delivery CFR China 30-75 days from date of publication.  

These assessments will be published in Platts Metals Alert page 1051, Steel
Markets Daily, Coal Trader International, International Coal Report, and
Platts Dispatch. Please address any comments or questions to
cokingcoal@platts.com.