Argus/McCloskey's API 8
Overview
The API 8® index is the benchmark reference price for the Chinese import market, the world’s largest consumer of coal. It is an average of the Argus south China assessment and the McCloskey/Xinhua Infolink South China marker, the two most widely referenced coal prices in the region.
The API 8® index is a weekly price assessment, published in Argus/McCloskey’s Coal Price Index Report.
Price assessment details
What is the API 8® coal price index?
The API 8 index is calculated as an average of the Argus 5,500 kcal/kg cfr south China price assessment and the McCloskey/Xinhua Infolink South China CFR (5,500 kc NAR). The API 8 price index is part of the API price series which provides global price benchmarks for coal trading.
How is this assessment used?
Coal buyers and sellers use the API 8 price assessment to settle coal supply agreements and hedge price risk through swaps and futures market activity. Banks, brokers and other financial participants use the API 8 price assessment to construct those swaps. Futures exchanges use the API 8 price assessment to settle cash-basis futures contracts. Analysts and market observers closely monitor the API 8 price assessment for data on market fundamentals in China’s manufacturing and power generation sectors.
What is the API price series?
The API indexes represent the price of liquid, physical coal benchmarks at key geographical pricing hubs, such as cif ARA (API 2® index), and fob Richards Bay (API 4® index), according to the API specifications. These specifications standardise the assessment around key criteria relating to contract basis, location, and energy value.
The API indexes provide transparency and visibility in the coal spot market and are widely used across the globe as a pricing basis for physical purchases and sales. The API series includes the API 2, API 3, API 4, API 5, API 6, API 8, API 10 and API 12 indexes. These indexes are published in the Argus/McCloskey’s Coal Price Index Report on a weekly basis on the last London working day of the week, usually a Friday.
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Key price assessments
Argus’ coal price benchmarks are recognised by the market as trusted and reliable indicators of the real market value. Explore some of our most widely used and relevant price assessments.
