IHS McCloskey Indonesia Coal Swap Volumes Soar, China Benchmark Launched
July 20 2011 - 12:30PM
Business Wire
Trades in Indonesian coal swaps settled against the IHS
McCloskey Indonesian Sub-Bituminous FOB marker, published by
information and analysis provider IHS Inc. (NYSE: IHS), have soared
to more than one million tonnes this year, as the index has become
rapidly accepted as a key benchmark for the world’s top thermal
coal exporter. On the back of this success, IHS McCloskey launched
last month the South China CFR marker, which has attracted
considerable industry interest with a growing number of companies
looking to trade swaps against it.
“The rapid take-up of these price benchmarks reflects rapidly
expanding demand for financial products from coal buyers and
sellers in Asia, but also the depth of expertise and unrivalled
credibility and reputation that IHS McCloskey enjoys in the
international coal market,” said Scott Key, IHS president and chief
operating officer.
The Indonesian swaps first traded in January 2010 through broker
Ginga Petroleum. Volumes rose significantly in November 2010 when
the Singapore Exchange (SGX) launched clearing services for it,
quickly followed by the Chicago Mercantile Exchange and the
Intercontinental Exchange. Trade rose to 250,000t – 300,000t per
month in May 2011, which coincided with Marex Spectron starting to
offer these swaps as part of its brokerage services in Singapore.
Following on from breaching the one million tonne mark, last
Friday, July 15, 2011, saw the largest volume of Indonesian swaps
trade with 165,000t going through in one day.
Following the growth in volumes on the Indonesian swaps, the
South China CFR marker and its methodology have attracted
considerable interest and it has recently been added to Marex
Spectron’s Asian coal broking portfolio.
The South China CFR marker is compiled in association with
Xinhua Infolink using the IHS McCloskey Coal Marker Price
Methodology. The marker focuses on the price of imports into the
South China market. However, as the marker assesses the most
competitive traded spot tonne, Chinese domestic prices (excluding
tax) provide the basis for the IHS McCloskey/Xinhua Infolink marker
when international prices are higher than Chinese domestic prices
and China stops importing.
Xinhua Infolink is a leading privately owned, independent
Chinese intelligence and insight provider. IHS McCloskey and Xinhua
Infolink have collaborated since 2004 on publications and
conferences.
The domestic coastal trade between north and south China is
around the same volume as the entire international seaborne steam
coal market. The attractiveness of international coal to Chinese
buyers is largely dependent on domestic CFR prices. When Chinese
domestic prices are lower than international prices, buyers focus
on the purchase of domestic spot material.
Marex Spectron, has become the first broker to offer coverage of
the Chinese coal swaps market. CFR China 5,500 grade swaps are now
tradable via Marex Spectron’s live trading screen or through its
voice brokering team. The swaps are settled against IHS
McCloskey/Xinhua Infolink South China CFR (5,500kc NAR) marker.
IHS McCloskey is the leading international provider of global
coal market information through the McCloskey Coal Report,
McCloskey China Coal Monthly, McCloskey Steam Coal Forecaster,
McCloskey Coking Coal Quarterly and McCloskey Coal UK. The
McCloskey NW Europe Steam coal marker and the Richards Bay FOB and
Newcastle FOB markers are components of the API 2, API 4 and API 6
coal market benchmarks.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information and insight
in critical areas that shape today’s business landscape, including
energy and power; design and supply chain; defense, risk and
security; environmental, health and safety (EHS) and
sustainability; country and industry forecasting; and commodities,
pricing and cost. Businesses and governments around the globe rely
on the comprehensive content, expert independent analysis and
flexible delivery methods of IHS to make high-impact decisions and
develop strategies with speed and confidence. IHS has been in
business since 1959 and became a publicly traded company on the New
York Stock Exchange in 2005. Headquartered in Englewood, Colorado,
USA, IHS employs more than 5,100 people in more than 30 countries
around the world.
IHS is a registered trademark of IHS Inc. IHS McCloskey, IHS
McCloskey Indonesian Sub-Bituminous FOB marker, IHS McCloskey
Indonesian Sub-Bit FOB marker are trademarks of IHS Global Limited.
All copyrights and database rights in the IHS McCloskey Indonesian
Sub-Bituminous FOB marker belong exclusively to IHS Global Limited.
All rights reserved. API 2, API 4 and API 4 refer to the indices
jointly owned by Argus Media Limited and IHS Global Limited and are
published each week in the "Argus/McCloskey's Coal Price Index
Report.” All Rights Reserved. API 2 and API 4 are trademarks of
Argus Media Limited and IHS Global Limited. All other company and
product names may be trademarks of their respective owners.
Copyright © 2011 IHS Inc. All rights reserved.
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