The Steel Index (
) will launch a coking coal price index later this year to
complement its world-renowned steel, iron ore and scrap indices.
The new index is being launched in direct response to requests from
industry participants around the world keen to see TSI's rigorous
methodology applied to compile reliable coking coal prices, TSI
informed in a press release.
TSI's data-driven methodology, in which reference prices are
based on actual transaction prices collected from buyers and
sellers through a secure on-line system, is greatly favoured by
companies over telephone-polling approaches, TSI said.
Coking coal (metallurgical coal) is an essential ingredient in
iron and steel production. Approximately 70% of steel worldwide
derives from iron generated in blast furnaces that consume coking
coal and iron ore. Coking coal now comprises around 25% of the
globally-traded coal market and is the fastest growing and most
volatile segment in the coal industry. On average, approximately
230 million tonnes are traded worldwide each year.
\"The addition of a coking coal index completes TSI's coverage
of the steel supply chain,\" says Steven Randall, Managing Director
of TSI. \"Coking coal prices can be more volatile than iron ore,
scrap and steel prices, so the need for a reliable index that the
market trusts is paramount. The steel industry is at a pivotal
point in its evolution and TSI is pleased to play its role in
supporting the developments needed.\"
TSI's iron ore and steel index prices are already used by
miners, traders and steel mills worldwide as the basis for their
index-linked pricing arrangements. Its iron ore index provides the
settlement prices for over 95% of all iron ore swap contracts
cleared worldwide, having been selected by the Singapore Exchange
(SGX), LCH.Clearnet (London) and the CME Group (based in