Argus Coal, Indices and More
A long time ago I blogged about the API index’s. If your interested in coal, then Argus Coal Daily International offers some relevant reading- sample available here. Argus assesses prices in the traditional spot markets for physical and over-the-counter (OTC) coal. Argus Coal Daily International also includes forward levels for the API 2 and API 4indexes. The spot prices against which swaps are settled are published in the Argus/McCloskey’s Coal Price Index Service.
I’m always quite interested in transportation of commodities. In the case of coal, there’s US eastern/western rail, US barge transportation, international seaborne coal imports and exports. Which leads to freight charges, movement, barge rates, rail rates and much more that come into the equation of price.
- API 2 – the standard reference price benchmark for coal imported into northwest Europe. It is an average of the Argus cif Rotterdam assessment and McCloskey’s northwest European steam coal marker.
- API 4 – the benchmark price for coal exported out of South Africa’s Richards Bay terminal. The API 4 index is calculated as an average of the Argus fob Richards Bay assessment and McCloskey’s fob Richards Bay marker.