Fenwei Energy Information Services Co., Ltd. proposes to adjust specifications of Fenwei CCI 5500 and CCI 5000 Indexes – typical sulphur content and typical total moisture – on January 1, 2020 to better reflect prices of most-traded thermal coal varieties in the spot market.
One major factor behind the adjustment is that end users are getting increasingly interested in thermal coal with lower sulphur content under stricter environmental requirements.
For Fenwei CCI 5500 index, we propose to make below adjustments:
Specifications before Adjustment: The standard specification of typical sulphur content is 0.8% air dried basis, and typical total moisture is 10% net as received basis.
Specifications after Adjustment: The standard specification of typical sulphur content is 0.6% air dried basis, and typical total moisture is 15% net as received basis.
For Fenwei CCI 5000 index, we propose to make below adjustments:
Specifications before Adjustment: The standard specification of typical sulphur content is 0.8% air dried basis, and typical total moisture is 10% net as received basis.
Specifications after Adjustment: The standard specification of typical sulphur content is 0.6% air dried basis, and typical total moisture is 15% net as received basis.
Since their publication, Fenwei has adopted premium and discount standards for sulphur and moisture contents of both 5,500 Kcal/kg and 5,000 Kcal/kg NAR coal, so the adjustments described above will not affect historical data of Fenwei CCI 5500 and CCI 5000 Indexes.
The premium and discount standards adopted are as follows: a 2 yuan/t premium for every 0.1% decrease in sulfur content based on the typical sulphur content on air dried basis, and a 4 yuan/t discount for total moisture above 10% based on the typical total moisture on net as received basis.
If you have any problems or suggestions, please feel free to reach us at price.committee@fwenergy.com before November 15, 2019.
The Fenwei Price Committee members will make the final and most appropriate decision with due consideration to all the opinions received.
Price Committee of Fenwei Energy Information Services Co., Ltd.
Sep 16, 2019