I SteelHome China Coal Price Index

SteelHome China Coal Price Index (SHCNCI) includes SteelHome China Coking Coal Price Index (SHCNCCI), SteelHome China Thermal Coal Price Index (SHCNTCI) and SteelHome China PCI Price Index (SHCNPCI). SteelHome China Coking Coal Index further includes SteelHome China Domestic Coking Coal Price Index (SHCNDCCI) and SteelHome China Imported Coking Coal Price Index (SHCNICCI).
The Indices are presented in two ways, one is points and the other is prices, both of which are based on the level on September 28, 2004 when SteelHome was created.
Publication time: every working day, 17:00 BJ time.

II Data Collection

  • Shanghai SteelHome has widespread coal contact base, including nearly 500 large and medium-scaled coal miners in about 20 major producing areas in China such as Shanxi, Hebei, Heilongjiang, Inner Mongolia etc., 10+ coastal ports, 100+ steel mills, large and medium-sized coal traders and thermal power utilities. SteelHome collects the settlement prices via phone calls, email and feedback from clients etc.
  • To compile the indices, SteelHome collects physical data from at least six coal miners, six steel mills and six coal traders. Data points that fall greater than 3% away from the initially collected prices are automatically excluded and only prices fall within the target specification range will be considered mostly-traded prices and will be put in index calculation, as SteelHome believes this would make a fair representation of physical market and remove bias from any interest sides.
  • When the physical market is not active and fail to generate required transaction price data, SteelHome will use assessments, offers and bids from the market to supplement transaction data and to detect price mostly easy to be accepted by two parties.
  • SteelHome has no financial interest in the level or direction of the Indices and ensures that due impartiality is preserved throughout the course.

III Methodology

The index calculation is based on the combination of actual transaction prices and assessments from large and medium-sized coal producers and buyers in China (imported coking coal index is based on transaction prices at China main ports). It is updated every quarter of the year. Terms and chemical components are below:

Product Specs Basis Quantity Payment Unit
Domestic
coking coal
V:21-25%, A<11%, G>75%, S<1% Ex-works price >30,000 tons In cash RMB/ton
Imported
coking coal
V:21-25%, A<10%, G>75%, S<0.6% CIF price >20,000 tons In cash USD/ton
PCI V:10%, A:10-11%, S<0.6%, HGI80 Ex-works price >20,000 tons In cash RMB/ton
Thermal coal V:15-30%, Q:5500, S<1.0%, A<15% Ex-works price >30,000 tons In cash RMB/ton

IV Application

  • Producers: to adjust ex-works prices on the basis of domestic and imported coal index;

  • Buyers: to finalize the monthly, quarterly and yearly settlement prices with the index change and average monthly index;
  • Importers: to trade imported coal against imported coal index (such as SteelHome China Imported Coking Coal Price Index);
  • Research institutes: to picture profitability and cost at downstream consuming sectors.

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