Argus and IHS (NYSE: IHS) said they have expanded 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.
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.