HOUSTON, Sept. 26, 2016 /PRNewswire/ -- Officials building Mexico's energy reform framework for power markets have chosen the API 2 Argus/McCloskey coal index as the basis for fuel-import calculations, according to global energy and commodity price reporting agency Argus, and IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.
The API 2 Argus/McCloskey coal index price represents an average of the Argus cif ARA assessment and the IHS McCloskey NW Europe Steam Coal marker, which are used globally to value global coal imports. Mexico's energy secretary, Pedro Joaquin Coldwell, approved the use of API 2 indexation in reference prices for imported coal, and the new Mexican regulations took effect when published in the Diario Oficial de la Federación last month.
The API 2 index averages Argus' assessments of cif ARA coal prices, or prices for coal delivered to the major northwest European hub, with the IHS McCloskey NW Europe Steam Coal marker, to create the world's most-recognized price benchmark in international coal buying, selling and trading.
The Argus/IHS McCloskey coal indexes serve as the source for the price benchmarks of the most liquid and transparent coal markets in the world, and are used as the settlement prices in 90 percent of the world's physical and derivative contracts for coal. In addition to their trading functions Argus and IHS McCloskey price indexes are widely used in official fuel calculations in Latin America and around the world. Top regional producer Colombia has relied on the API 2 coal price index for royalties and tax purposes for many years. "We are pleased that the API 2 index is helping Mexico's regulators, power generators and electricity customers manage fuel-price risk," said Argus Media executive chairman and publisher Adrian Binks. "The Argus/McCloskey coal price indexes provide a firm market foundation for power calculations there."
"We are delighted that the Mexican government has approved the use of the API 2 to price imported coal as part of its energy reform framework for power markets," said John Howland, managing director, coal, at IHS Markit.
The Argus/McCloskey Coal Price Index service is the source of the API prices, which are the key indexes used for international physical and derivatives coal business. The API 2 price is the primary price reference for physical and over-the-counter (OTC) coal contracts in northwest Europe. The service also includes the API 4 index, which is the benchmark for coal exported out of Richards Bay in South Africa; the API 8 index, which is the benchmark for imported coal delivered into South China, and the API 5 the benchmark for lower quality coal exported from Australia.
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About Argus Media
Argus is an independent media organisation with almost 800 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.
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 21 offices globally, including London, Houston, Washington, New York, San Francisco, 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.
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About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world's leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
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SOURCE Argus Media