The deal was brokered by global energy commodity brokerage firm Evolution Markets, and involved Trafigura, one of the world’s largest independent commodity trading and logistics companies. It was traded through the exchange and cleared and settled by CME Group.
The ICI 4 index applies to 4,200 kcal/kg GAR thermal coal shipped from Indonesia (Kalimantan), and is the reference price for low-heat value coal traded in the Asia-Pacific market.
Argus Media chairman and chief executive Adrian Binks said: “The ICI 4 index has gained the confidence of the Asia-Pacific coal trading community as a reliable, independent price assessment since it was launched nine years ago. Much physical supply for similar grades of coal is priced against the ICI 4 index. We are pleased that we have been able to work with the CME to provide this powerful hedging instrument.”
The ICI 4 index is jointly produced by Argus and PT Coalindo Energy. The methodology used to derive the Argus and Coalindo prices is available online.