Data aids price discovery & risk management of China’s domestic and imported coal

Asian FTG a premium source of benchmark price assessments commodities today announced it has further expanded its suite of pricing references for China and the greater Asia-Pacific region with the launch of two new thermal coal price assessments for the Chinese market.

“The two price assessments are designed to complement each other by providing a quick and straightforward way for traders and other interested parties to compare the prices of domestic and imported thermal coal in the Chinese market and immediately determine whether there is price arbitrage advantages favoring one type or the other,” said James Hester, Asian FTG Senior Coal Trader.

The new assessments capture physical spot prices for domestic and imported thermal coal with a calorific value of 5,500 kilocalories per kilogram (kcal/kg) on a net-as-received basis as follows:

•  Asian FTG CFR South China: Physical open-market price assessment of thermal coal (including the cost of freight) out of Australia, Colombia, Indonesia, Russia and South Africa that is traded in the seaborne spot market

•  Asian FTG FOB Qinhuangdao: Physical open-market spot assessment of thermal coal (loaded free on board) from ports in northeastern territories.

“Asian FTG believes that providing a consistent independent source of spot price information supports better decision making regarding cargo trade, arbitrage between regions, storing and transporting thermal coal to markets, investment in infrastructure projects and optimal production rates, processing margins and consumption levels,” said Hester.

Asian FTG’s CFR South China and FOB Qinhuangdao thermal coal price assessments are based on all-day market monitoring and data collection of transactions, bids, offers and other information from market participants in the open markets. Assessments reflect values at the close of the physical trading day, local time.

Asian Futures Trading Group offers the latest in order entry technology coupled with 24-hour execution and clearing on exchanges worldwide. Clearing more than 100,000 client accounts, the firm provides a full range of services to the industry’s largest global network of introducing brokers (IBs) and to commercial, institutional, international and individual clients. These include more than 200 IBs and many of the world’s largest financial, industrial and agricultural institutions.

Via EPR Network
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