The sharp rise in coal demand in recent years has been driven by requirements from Asian giants China and India. Unlike traditional import demand centres such as Japan, which sought coal with a heating value of 6,000 kcal/kg (net as received) NAR coal, the new cost-conscious Asian industrial powerhouses are increasingly seeking 5,500 kcal/kg NAR.
The API 5 index tracks this key market on a fob Newcastle basis and is the most closely watched coal assessment with its profound influence on global markets. The index represents 5,500 kcal/kg NAR high-ash coal shipped from Australia. It was launched jointly by global energy price reporting agency Argus and IHS McCloskey at the start of May 2012 and has quickly gained the confidence of the coal trading community as a reliable, independent price assessment for contracts.
The Argus component of the price is published each day in Argus Coal Daily International. The index is available in the Argus/McCloskey’s Coal Price Index report every Friday. Argus/McCloskey's Coal Price Index Service is the source of the API prices, which are the key indexes used for international physical and derivatives coal business.
The API 5 index reflect spot trades (mainly to China and South Korea) and price views in the off-specification Australian NAR 5,500 kcal/kg spot physical market, which has become increasingly more liquid and dynamic compared with the NAR 6,000 kcal/kg market.
The API 5 index is an average of the Argus fob Newcastle 5,500 kcal/kg assessment and the equivalent from IHS McCloskey. To understand how the prices are calculated, read the market-appropriate methodology for Argus Coal Daily International
The API 2, API 4, API 5, API 6 and API 8 indexes are published exclusively through the Argus/McCloskey's Coal Price Index service.
Argus coal methodology
Access the Argus/IHS McCloskey webinar: API 5 - The fast-growing market's key index
Contact your local office