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How it works
Trading on globalCOAL
What will I see when I log in to the globalCOAL screen?
You will see real-time, firm bids and offers for standardised parcels of coal posted by globalCOAL Market Members. The most liquid physical markets are for thermal coal traded FOB at Richards Bay and Newcastle, and delivered DES at Amsterdam-Rotterdam-Antwerp and for metallurgical coal delivered FOB Australia.
When a trade is executed, a pop-up box instantly informs you which contract has traded and at what price. The globalCOAL trading screen is an unparalleled source of coal pricing information.
Can I trade straight away?
You will first need to establish bilateral credit agreements with other globalCOAL Market Members. To trade thermal coal, you must approve a minimum of six counterparties; and for met coal you must approve a minimum of four.
Counterparty credit is managed through our sophisticated, yet user-friendly online counterparty matrix tool.
When your chosen counterparties reciprocate, you can post bids and offers and execute trades on the platform. Don't forget – until then you can still view prices and trades.
What is the quality of the coal? And the delivery terms?
All trades on the platform are underlied by SCoTA v8, globalCOAL's standard contract and a benchmark reference in the world of coal trading. In conjunction with an RSS (Relevant Standard Specification) specific to the product traded, SCoTA defines the quality and delivery terms and conditions so you can focus on negotiating what matters most: price and volume.
What products can I trade on screen?
You can buy and sell a comprehensive range of physical and financial coal contracts for the world’s most liquid thermal and metallurgical coal markets. Find a full list here.
If buying branded met coal, when will I know what brand is being supplied?
The Seller must communicate which of the qualifying brands will be supplied no later than 20 days prior to the start of the Delivery Period.
Which terms do I decide on screen, and which are pre-agreed in SCoTA?
Delivery terms and conditions, quality specifications and post-delivery price adjustments are all pre-defined in SCoTA and the RSS. For a given delivery period, only price and volume need to be negotiated on screen.
When can I see the name of the counterparties I trade with?
Bids and offers are completely anonymous on the trading screen. At the point of execution, the parties to a trade will be informed of the identity of their counterparty. The wider market will only be notified of the terms of the transaction (price, volume, delivery period) – but not who was involved.
How do I know that I won't be matched with someone I can't trade with?
You are in control of who you can trade with. The system will only allow you to execute a price on the platform if you have already approved that counterparty on the globalCOAL system. The prices posted by approved counterparties appear in red on the trading screen, and are tradable. The prices posted by other counterparties appear in pink, and are not tradable.
When does a transaction take place?
A transaction is deemed to take place at the time of execution on the platform (either by yourself or upon instructing globalCOAL to transact on your behalf), at which point you are contractually bound under the terms of SCoTA and the RSS.
How much can I buy?
Thermal coal: The minimum quantity is 25kt, with a +/-10% shipping tolerance.
Metallurgical coal: The minimum quantity is 35kt with a +/-10% tolerance. The majority of transactions are traded in panamax (75kt) or capesize (150kt) quantities.
Can I see it in action?
Is the final price adjusted for quality?
Yes. The invoice price is based on final quality at loadport, as per normal market practice. Price adjustments are made on the basis of four parameters – Total Moisture, Ash, Volatile Matter, Total Sulphur and, in the case of met coal, Calculated CSR.
How can I be assured of the quality of the coal I will receive?
Strict rejection limits and penalties laid out in the Relevant Standard Specifications give buyers comfort on loaded quality. SCoTA contains clear contractual provisions for umpire analysis and rejection procedures.
How is the CSR calculated?
Predicted CSR will be calculated using a formula developed by ALS Global and globalCOAL. This formula has been developed from empirical coking data derived under standard testing conditions and regressed against corresponding coal specifications.
Who is globalCOAL?
globalCOAL hosts the world's most comprehensive online platform for the sale and purchase of seaborne thermal and metallurgical coal. It is also the architect of SCoTA a standard coal trading agreement which has become the coal market's contract of choice.
Our shareholders number amongst them some of the world's leading coal market participants.
What is the platform?
globalCOAL's online trading platform serves as an electronic marketplace where participants bid, offer and transact cargos of physical coal.
Over 190 companies worldwide are members of globalCOAL. They include major coal producers, utilities, international trading houses and steel plants in all parts of the world. See the list of globalCOAL Market Members
How can I join?
To view prices or transact cargos on the globalCOAL platform, companies must become Market Members. See how to join and the costs.
How is the globalCOAL platform regulated?
globalCOAL is authorised and regulated by the Financial Conduct Authority in the UK, and adheres to a set of very strict rules dictating conduct on the trading platform.
globalCOAL also complies with the IOSCO Principles for Financial Benchmarks.
Have questions? Contact our sales team
T: +65 6311 4570