Opinion solicitation for CCI 3800 Import FOB Index methodology

2019-04-30 14:15:36 Sxcoal.com

Sxcoal.com proposes to launch Fenwei CCI 3800 Import FOB Index on June 1, 2019 to better reflect daily FOB Indonesia price changes of Indonesian low-CV thermal coal. Comments from market participants are most welcome prior to this date and a methodology for FOB Indonesia 3,800 Kcal/kg NAR coal will be finalized based on feedbacks.


A preliminary version of CCI 3800 Import FOB Index methodology is as follows:


The CCI 3800 Import FOB Index will be published as a daily 15-45 days forward price assessment for thermal coal with a calorific value of 3,800 Kcal/kg net-as-received on a FOB basis at South Kalimantan, Indonesia.


Price Assessment: The assessment, in US dollars per tonne, reflects the commercial value of 3,800 Kcal/kg NAR coal sold in the spot market on a FOB basis at Indonesian ports.


Specifications: The standard specification for CCI 3800 Import FOB Index will be as follows: a standard calorific value of 3,800 Kcal/kg NAR, typical sulphur content of 0.5% air dried basis, typical ash of 7% air dried basis, typical total moisture of 35% net as received basis and typical volatile matter of 40% air dried basis.  


CCI 3800 Import FOB Index editors will consider as relevant to the assessment process coals in a range of 3,600 - 4,000 Kcal/kg NAR with a maximum sulphur content of 0.8% air dried basis, maximum ash air dried basis of up to 18%, total moisture to a maximum of 38% net as received basis, maximum volatile matter air dried basis of up to 45% and will normalize to the standard specifications.  


Basis and Location: CCI 3800 Import FOB Index editors will take into consideration cargoes of thermal coal for loading at Indonesian ports including but not exclusive to East Kalimantan and South Kalimantan and normalized to South Kalimantan.


Volume: The minimum-sized cargo applicable for price assessment purposes is 65,000 tonnes. All other sizes including split and part cargoes will be normalized to this volume. A cargo with size below 25,000 tonnes will not be taken into consideration.


Payment terms: Letter of Credit, cash or cash equivalent payable at sight.


Timing: The CCI 3800 Import FOB Index will reflect the FOB price of coal for loading at Indonesian ports 15-45 days forward from the date of publication. For instance, on June 1 cargoes loading between June 16 and July 15 would be considered. The assessment reflects the midpoint of the loading period. Cargoes traded with more prompt or further forward loadings are normalized to 30-days forward loading date for assessment purposes.


Availability: The CCI 3800 Import FOB Index is published daily in Price column of sxcoal.com and in electronic periodicals like CCI Daily and China Coal Weekly.


Assessment Time: The CCI 3800 Import FOB Index reflects the transactable value prevailing at 17:00 Beijing local time. The assessment methodology reflects values in a market on close basis. Trading activity, including bids/offers and transactions, is covered during the typical operating day with data cut off for inclusion in the assessment precisely at 17:00 Beijing local time.


Unit: Prices are to be quoted in US dollars per tonne ($/t) to two decimal places, excluding Value Added Tax.


Fenwei Energy Information Services Co., Ltd.


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