Weekly average ICI* prices

Argus/Coalindo
Copyright 2014 Argus Media Ltd
Indonesian Coal Index Report
Additional information about the underlying assessments used to produce the ICI can be obtained from
the publishers.
Argus Media (London)...........................+ 44 20 7780 4200
Argus Media (Singapore)......................+ 65 6496 9966
PT Coalindo............................................+ 62 21 3001 2490
*ICI is a trademark of Argus Media Limited and PT Coalindo.
** Argus and Coalindo methodologies appear on page 2.
Reproduction, scanning into an electronic retrieval system or copying to a database is strictly prohibited
without the written permission of the publisher. Published weekly. Supplied under licence.
hh
-15
-10
-5
0
15 Nov 13 27 Dec 13 07 Feb 14 21 Mar 14
Argus fob Richards bay = 0
ICI 2 differential to Argus fob Richards Bay $/t
hh
-15
-10
-5
0
15 Nov 13 27 Dec 13 07 Feb 14 21 Mar 14
Argus fob Newcastle = 0
ICI 2 differential to Argus fob Newcastle $/t
Page 1 of 2
Argus/Coalindo is reviewing whether to raise the maximum for sulphur content to 1 pc for Indonesian coal grades GAR 5,800
kcal/kg (ICI 2), GAR 5,000 kcal/kg (ICI 3) and GAR 4,200 kcal/kg (ICI 4). To allow market participants more time to provide
feedback, the review period is being extended to 4 April 2014. The proposed change is aimed at updating specifcations to
refect evolving market conditions and capturing the growing spot trade to China and India using the broader specifcations.
Please contact Abdul Hadhi at (+65) 6496 9994 or coal@argusmedia.com if you have any comments or questions.
Issue 013 Friday 28 March 2014
Monthly ICI averages
Jan Feb Mar
ICI 1 83.22 80.41 78.32
ICI 2 71.05 70.13 68.41
ICI 3 57.54 57.12 56.30
ICI 4 38.75 38.83 38.19
ICI 5 27.43 26.51 25.63
Indonesian Coal Indices incorporating assessments by Argus Media and PT Coalindo**
Grade (kcal) Price(US$/t)
ICI 1 (Indonesian 6,500 GAR / 6,200 NAR) 77.45
ICI 2 (Indonesian 5,800 GAR / 5,500 NAR) 66.74
ICI 3 (Indonesian 5,000 GAR / 4,600 NAR) 56.07
ICI 4 (Indonesian 4,200 GAR / 3,800 NAR) 37.33
ICI 5 (Indonesian 3,400 GAR / 3,000 NAR) 25.60
Specifcations FOB Kalimantan, per tonne
Timing Sulphur Ash TM Size
ICI 1 in 90 days up to 1% up to 12% up to 12% Panamax
ICI 2 in 90 days up to 0.8% up to 10% up to 18% Panamax
ICI 3 in 90 days up to 0.6% up to 8% up to 30% Panamax
ICI 4 in 90 days up to 0.4% up to 6% up to 40% Mother vessel
ICI 5 in 90 days up to 0.2% up to 4% up to 50% Mother vessel
Argus/Coalindo Indonesian Coal Index Report
Page 2 of 2
Copyright 2014 Argus Media Ltd
Issue 013 Friday 28 March 2014
Argus/Coalindo ICI 2
--
55
56
57
58
59
60
61
APR-13 JUN-13 AUG-13 OCT-13 DEC-13 FEB-14
Argus/Coalindo ICI 3
The Indonesian Coal Indices are derived from a 50/50 average of assessments by Argus Media and the panel submissions collated by Coalindo.
Argus Media Ltd
Argus Medias contribution to the ICI represents Argus assessed price on the last working day of each week. A schedule of publication is available from Argus Media.
The Argus team of specialist market reporters contacts a wide cross section of coal market participants by telephone, instant messenger and via email. A balance is
maintained in this survey between sellers of physical coal, utility buyers, trading companies and broking companies.
The market reporters/analysts record the transactions that are reported and verify all data. They then construct a volume weighted average of the transaction prices that meet
the assessment criteria listed in the specification above. Transactions within the specifications above will influence the final assessment.
Participants in the market survey are also asked where they see the level of prices in the market and, if applicable, if they have received or made any firm bids and/or offers
for coal. Argus market specialists then assess the price of the specified grades of coal using all verified information.
Information on transactions and offers that lie outside the specifications may be taken into account but information that lies within the listed specifications of the assessment
will be given most weight. Prices on electronic trading platforms may be used as indicators of prevailing market prices, provided they meet all relevant specifications. For
more information, go to www.argusmedia.com
PT Coalindo Energy /Coalindo
The Coalindo panels are comprised of a number of members balanced between representatives of coal producers, coal consumers, coal market intermediaries (traders and
brokers).
Every week - on the last working day of the week at 15:00 PM Jakarta time - the panel members will submit to Coalindo their views of the market price of Indonesian coal.
These price submissions must represent the value of deals actually known to be done by the panelists or the value at which a deal could be done in the free and open market
for delivery over the next 90 days.
These submissions will be subject to review by Coalindo and its representatives to ensure that they are reliable and representative of the prompt spot market. Coalindo and its
representatives may use a variety of means to ensure the reliability of the panel submissions, including but not limited to:
Excluding any submissions that are more than 20% higher or lower than inputs that were used in previous weeks accepted panel submissions,
Excluding any submissions that are more than 10% higher or lower than the previous weeks ICI price for a given grade after it is adjusted to account for moves in other
regional markets ,
Other tests determined by Coalindo to be appropriate and proper to ensure accuracy.
Once these tests have been performed, the top and bottom 10% of submissions are eliminated and the remaining submissions are averaged. The remaining submissions are
then averaged for each grade assessed. Coalindo averages are then averaged with the corresponding Argus assessments to produce the ICI numbers.
Methodologies
--
75
80
85
90
95
APR-13 JUN-13 AUG-13 OCT-13 DEC-13 FEB-14
Argus/Coalindo ICI 1
--
37
38
39
40
NOV-13 DEC-13 JAN-14 FEB-14 MAR-14
Argus/Coalindo ICI 4
--
65
70
75
80
APR-13 JUN-13 AUG-13 OCT-13 DEC-13 FEB-14
Publisher
Adrian Binks
Chief operating offcer
Neil Bradford
Global compliance offcer
Jeffrey Amos
Commercial manager
Jo Loudiadis
Editor in chief
Ian Bourne
Managing editor, Global
Cindy Galvin
Editor: Abdul Hadhi
Tel: +65 6496 9994
coal@argusmedia.com
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Argus/Coalindo
Indonesian Coal Index Report
is published by
Argus Media Ltd.
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175 St John St, London, EC1V 4LW
Tel: +44 20 7780 4200
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ISSN 2049-8179
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