(EnergyAsia, March 5 2012, Monday) — Global energy price reporting agency Argus said it has introduced a weekly FOB Newcastle 5,500 kcal/kg NAR (net as received) within 90 days assessment in addition to its existing FOB Newcastle 6,000 kcal/kg NAR within 90 days assessment.

The new assessment is being launched in response to industry feedback that shows clear demand for a new price reference, owing to the substantial trading volume of 5,500 kcal/kg NAR coal from Newcastle in Australia to northeast Asia, especially China.

China’s bituminous coal imports from Australia reached 3.1 million tons last November, more than double the volume a month earlier and four times more than the same month in 2010.

Asian demand for thermal coal is expected to continue to migrate from higher quality to more competitively priced lower quality coal, especially in the price‐conscious markets of China and India.

The Newcastle 5,500 kcal/kg assessment will be based on the Argus and API methodologies, using a combination of confirmed transactions and market views from a range of players including producers, consumers such as power plants and cement producers, and traders.

“The new assessment will be a key reference point for major industry participants including coal traders, risk managers and regulators,” Argus Media chairman and chief executive Adrian Binks said.

Argus is a leading international provider of global coal price information including the Indonesian Coal Index (ICI) and, in association with IHS McCloskey, the API 2 (CIF ARA), API 4 (FOB Richards Bay) and API 6 (FOB Newcastle) coal market benchmarks.

Argus Coal Daily International provides global coal price assessments, extensive market commentary and market‐moving news.