(EnergyAsia, July 14 2011, Thursday) — US-based energy and metals derivatives exchange CME Group said it will launch the world’s first coking coal swap contract on July 25.
Based on Platts’ Australian spot hard coking coal price assessment, the Australian Coking Coal Swap Futures contract will be available for trading on the NYMEX trading floor, and cleared through ClearPort.
The contracts will be settled off in US dollars per metric tonnes against Platts’ daily HCC 64 Mid Vol FOB Australia assessments used mostly to price steel-making coal.
CME Group, which owns the widely followed NYMEX and its oil and gas contracts, plans to eventually expand its offering of coking coal products.
Staring with September 2011, CME will list contracts through the next 24 calendar months. The contract will trade in 1,000 metric tonne units.
Trading will terminate on the last business day of the contract month. Business days are based on the public holiday calendar in Singapore, reflecting the country’s growing influence in the global coal trade.
“The launch comes over two years after the Singapore Exchange first offered cleared swaps on iron ore, the other major ingredient used to make steel,” said a CME statement.