Fenwei Energy Information Services Co., Ltd. hereby decides, based on feedbacks received over the past three months, to postpone the adjustment to specifications of Fenwei CCI 5500 and CCI 5000 Indexes  to April 1, 2020.

The adjustment to Fenwei CCI 5500 index:

The standard specification of typical sulphur content would be changed from 0.8% to 0.6% air dried basis, and typical total moisture from 10% to 15% net as received basis.  

The adjustment to Fenwei CCI 5000 index:

The standard specification of typical sulphur content would be changed from 0.8% to 0.6% air dried basis, and typical total moisture from 10% to 15% net as received basis.  

Since their publication, Fenwei has adopted premium and discount standards for sulphur and moisture contents of both 5,500 Kcal/kg and 5,000 Kcal/kg NAR coal as follows: a 2 yuan/t premium for every 0.1% decrease in sulfur content based on the typical sulphur content on air dried basis, and a 4 yuan/t discount for moisture content above 10% based on the typical total moisture on net as received basis.

That is, the market value of thermal coal with sulphur at or below 0.6% on air dry basis and total moisture at or below 15% on net as received basis, represented by single-mine Inner Mongolian coal, equals that of thermal coal with sulphur at or below 0.8% on air dry basis and total moisture at or below 10% on net as received basis, represented by single-mine Shanxi coal.

Therefore, the adjustments described above will neither affect historical data of Fenwei CCI 5500 and CCI 5000 Indexes, nor change the differences between mainstream coal grades and the CCI indexes.

If you have any problems or suggestions, please feel free to reach us at price.committee@fwenergy.com before March 15, 2020.

The Fenwei Price Committee members will make the final and most appropriate decision with due consideration to all the feedbacks received.

Price Committee of Fenwei Energy Information Services Co., Ltd.

December 31, 2019