SINGAPORE, May 2, 2014 /PRNewswire/ -- Global energy and commodity price reporting agency Argus and IHS (NYSE: IHS), a leading global source of critical information and insight, today announced the expansion of the API coal indexes in Asia-Pacific.
The new API 12 coal price index will assess multi-origin, mid-quality coal imported to east India from South Africa, Indonesia, Australia and other exporters. The index will be launched today.
API 12 reflects 5,500 kcal/kg NAR (net as received) coal delivered to east India. Coal accounts for around 80pc of India's power generation, with demand growing by more than 10pc/yr. Thermal coal demand is also growing from cement makers and sponge iron producers as India embarks on massive infrastructure projects. Imports are expected to account for 21pc of overall Indian coal demand of 770mn t in the 2013/14 fiscal year, according to the Reserve Bank of India.
Indonesia supplied as much as 76pc of India's coal imports in the past three years while South Africa accounted for 19pc. Indonesian fob price references already exist for the 5,500 kcal/kg NAR grade, as well as API 3 for those of South African origin and API 5 for Australian origin.
All the Argus and IHS McCloskey indexes are calculated by averaging the relevant Argus and IHS coal price assessments. The methodologies used to derive these prices are available online at www.argusmedia.com/methodology and www.mccloskeycoal.com.
"We are pleased to be able to meet demand from market participants for an additional reliable, independent benchmark," Argus Media chairman and chief executive Adrian Binks said. "This is the latest in the API thermal coal index series, which 90pc of the world's internationally traded coal derivatives settle against."
"This is an exciting addition to the API benchmarks and underlines the markets changing focus towards 5,500 kcal/kg NAR products, particularly in Asia-Pacific," IHS Energy senior director John Howland said. "From Australia to China and Richards Bay to India, API benchmarks can be used to track and trade this increasingly vibrant market for 5,500 kcal/kg NAR thermal coals."
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About Argus Media (www.argusmedia.com)
Argus is an independent media organisation with almost 600 full time staff. It is headquartered in London and has offices in each of the world's principal commodity centres. Its main activities comprise publishing market reports containing price assessments, market commentary and news, and business intelligence reports that analyse market and industry trends.
More than half of Argus employees are commodity journalists who specialise in reporting news and price information relating to physical energy and related commodity markets. They operate according to a rigorous Editorial Code of Conduct and a compliance and ethics policy that align with best journalistic practice, including the avoidance of conflicts of interest.
Argus is a leading provider of data on prices and fundamentals, news, analysis, consultancy services and conferences for the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer, petrochemical, metals and transportation industries. Data provided by Argus are widely used for indexation of physical trade. Companies, governments and international agencies use Argus information for analysis and planning purposes.
Argus has 19 offices globally, including London, Houston, Washington, New York, Calgary, Rio de Janeiro, Singapore, Dubai, Beijing, Tokyo, Sydney, Moscow, Astana and other key centres of the commodity industries. Argus was founded in 1970 and is a privately held UK-registered company.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 165 countries 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 is committed to sustainable, profitable growth and employs more than 8,000 people in 31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2014 IHS Inc. All rights reserved.
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