Dry Commodities
Coal
Coal markets are divided broadly between thermal coal for power generation and metallurgical coal for steelmaking.
MARKET REFERENCES
How the market commonly references price
There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.
- Newcastle thermal coal benchmarks
- API2 CIF ARA thermal coal
- Indonesian GAR/NAR references
- Platts Premium Low Vol (PLV) coking coal
TYPICAL COMMERCIAL STRUCTURE
How physical pricing is often built
Physical coal is commonly sold as an index ± quality differential. Adjustments may reflect calorific value, ash, sulphur, moisture and origin. Delivered pricing adds freight; some term contracts average an index over a defined pricing period.
PRICE DRIVERS
What moves the physical differential?
- Calorific value
- Ash / sulphur / moisture
- Power and steel demand
- Mine supply
- Freight
PHYSICAL TRADE
Commercial considerations
FOB Australia, FOB Indonesia, CFR China and CIF ARA are major reference bases depending on coal type and destination.
The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.
Market methodology reference: view source / methodology
PHYSICAL COMMODITY BROKERAGE
Discuss a Coal requirement.
Share the specification, quantity, origin or destination, delivery basis and timing.