LONDON - 19 OCTOBER 2016
globalCOAL® announced today that two new contracts are now available to trade on its online platform:
- Phys RB2 5700 (FOB RBCT) will sit alongside Phys RB1.
- A related index-linked contract, the Phys RB2 5700 Index, index linked to the API 4® Index, as published by Argus Media Ltd and IHS Markit in the Argus/McCloskey’s Coal Price Index Report.
To review the product specification for RB2 5700 (FOB RBCT) please click here then select to view RB2 5700 in the Quick Links:
The addition of the contracts to the globalCOAL trading screen, which went live on October 17, came about following feedback from globalCOAL Market Members that they would like the opportunity to trade these products on screen alongside existing contracts.
“We are already seeing interest in both contracts,” said Tracy Vowel, Head of Front Office at globalCOAL. “We are pleased to have been able to respond to Market Member feedback and continue to develop the range of contracts available on the trading screen, as well as other products and services to suit the interests of the Market.”
LONDON AND SINGAPORE – 27 July 2016
globalCOAL® announced today that Steel Authority of India Limited, SAIL, joined its international trading community.
Headquartered in New Delhi, SAIL is one of the largest steel producing companies based in India; they have five integrated steel plants, three special plants, and one subsidiary spread throughout the country.
“We are delighted to welcome SAIL to our trading community.” said Ajay Baral, India Manager at globalCOAL. “We have recently seen a growing number of Indian enterprises join as globalCOAL Market Members. The coal market in India is diversifying as it evolves, and access to our trading platform provides another route to market for major operators such as SAIL to procure coal with flexibility.”
LONDON AND SINGAPORE – 9 June 2016
globalCOAL® announced today that Martin Abbott will join its Board as Independent Non-Executive Director.
Martin has an extensive career in the commodities space. As Chief Executive of the London Metal Exchange from 2006 and 2013, he transformed the business into a world-class commercially-driven exchange, boosting profit from £2M to £50M per annum. In this and other roles – including running commodity trading businesses – he gained a deep understanding of the regulatory environment in which companies like globalCOAL operate.
In addition to joining the globalCOAL Board of Directors as Independent Non-Executive Director, Martin will take on the chairmanship of globalCOAL’s Compliance Committee, which, amongst other area of responsibilities, oversees the processes and procedures which define globalCOAL’s conduct with regards to the administration of its benchmarks, such as the globalCOAL NEWC Index.
Commenting on the appointment, globalCOAL Chairman Craig Wiggill said: “Martin will bring a valuable measure of independence to the globalCOAL Board and play a critical role in helping to steer globalCOAL through the current regulatory environment. His appointment is a key aspect of globalCOAL’s drive to strengthen its governance. We are proud to have someone of Martin’s calibre on our Board.”
LONDON AND SINGAPORE – 23 March 2016
globalCOAL® announced today that three new metallurgical coal Market Members have joined its international trading community.
Dubai based Steel Mont Trading DWC-LLC is a global trading and logistics enterprise focussed on the international trade and finance of a variety of products and industries.
German Thyssenkrupp Steel Europe AG is one of the world’s leading suppliers of high-grade flat steel. They supply high quality steel products to a wide range of industries.
Headquartered in Pennsylvania, USA, Xcoal Energy & Resources supplies low, mid and high volatile hard coking coal to customers throughout the world.
Commenting on the announcement, globalCOAL Head of Metallurgical Coal, Phil Shawcross said ‘In the five months since the launch of screen trading for met coal, we have brought much improved price transparency to this market. The concept is gathering momentum, and in today’s announcement, we see a microcosm of our online marketplace, with producers, steel mills and traders from around the globe all represented. We look forward to delivering an alternative route to market to these new Members.’
globalCOAL® announced today that four new Market Members have joined its international trading community.
Based in Dubai, Ferrocadia DMCC is an international natural resources trading house. They have more than 20 years’ experience in the trade of physical and financial commodities, with a focus on agriculture, metals, energy and raw materials.
Also headquartered in Dubai, Global Commodity Ventures FZC specialises in trading and shipping coal and related energy resources to large and medium sized industries across the Middle East and India.
Founded more than 65 years ago, German Norecom Limited finances, invests and trades in a wide range of commodities such as flat and long steel products, raw materials and forest commodities.
South African Osho SA Coal Pty Ltd is focussed on mining, trading, shipping and marketing of low grade thermal coal. In addition to South African coal, the group also regularly trades cargoes originating from Australia, Indonesia, Mozambique and the USA.
‘With this announcement, we see that interest in coal trading spreads beyond the growth markets of Asia, right across more established geographies such as Europe,’ said Tracy Vowel, Head of Front Office at globalCOAL. ‘It’s also interesting to see a new participant who is representative of the changing landscape in the South African coal market. We are delighted to welcome all four new Market Members to the globalCOAL trading community.’
More than 1 million tonnes of HCCA met coal has traded on globalCOAL in the three months since launch. globalCOAL’s Phil Shawcross discusses emerging trends, screen participation and what’s happening when the contract goes to delivery…
Q: Since we last spoke, more than 1 million tonnes of HCCA coal has traded – is the market favouring branded over unbranded coal?
Phil: Both markets have been well supported. Today, the split is 60: 40 in favour of branded coal, but we’ve seen regular transactions in both markets so that ratio fluctuates.
The price differential can vary too, but we are encouraged to see that, as both products become accepted by the market, the market in turn is determining appropriate price levels.
Q: Where do you tend to see most market depth on screen?
Phil: So far liquidity has concentrated in the prompt months, but we are also seeing interest further down the curve. This is something we expect to see build as the market becomes more familiar with the platform, the products and SCoTA.
Q: Who are you seeing on the platform?
Phil: There’s a broad range of market participants from across Australia, China, India, Singapore and Europe. We have a mix of coal producers, consumers and traders meeting on screen.
Q: Have any HCCA shipments gone to delivery yet? How did it go?
Phil: Yes! We had worked for so long to achieve market consensus on the product specifications and central terms, I admit to feeling a little apprehensive in advance of the first physical deliveries. Had we missed something? Would everything run smoothly?
Thankfully, feedback to date has been that deliveries are taking place ‘business as usual’, without any major issues. It’s early days, but it looks like the extensive rounds of market consultation we conducted prior to launch have resulted in robust products and terms which reflect market practices.
I’d like to thank everyone involved in those consultations and all who have supported the development of this new marketplace for metallurgical coal.
Thinking of getting involved?
Join our upcoming SCoTA Course in London / Singapore which includes a dedicated met coal break-out session. It’s especially designed to help met coal market participants understand the fundamentals of SCoTA and the HCCA product.
Our FAQ section has lots more info on the product and how the screen works.