Capesize

17950

Sep-17
0.00 0.00%

Panamax

11175

Sep-17
225.00 2.05%

Iron Ore

76.5

Sep-17
0.85 1.12%

Sing 380

278.25

Oct-17

Coking Coal

208

Sep-17
0.00 0.00%

Nola Urea

212.5

Sep-17
0.00 0.00%

Coking Coal


What are coking coal futures?



Coking coal futures are a financial contract that allow end users to hedge their future risk by taking an equal and opposite position to their physical transaction.

It is a cash-settled contract with no physical delivery, where both the buyer and seller agree a price for a future period that is settled against a neutral index.

"FIS believes coking coal has the potential to mirror the development of the iron ore swap market."


The cash flow generated from the settlement of the futures contract will help to offset the change in price in the physical market.

Coking coal futures can therefore help participants protect themselves from adverse price movements, helping to provide added certainty to their business.

Coking Coal Market Indices

There are now three indices against which coking coal swaps can be traded. These are:
  • Australian Coking Coal (Platts) Low Vol Futures against which the first lots traded have been concluded.
  • Australian Coking Coal (TSI) Premium Coking Coal FOB East Coast Australia.
  • China Coking Coal (TSI) Premium Coking Coal, CFR Jingtang.
  • As during the development of the iron ore swap market, FIS remains open-minded as to the market’s preferred choice of index provider and will work to assist the development of alternatives as needed.