Xinhua Infolink has been committed to an important role in establishment and running of a global benchmark for China\\\'s imported coal prices. Together with Argus and the IHS McCloskey, it founded the API8 -- CFR price index for China’s imported coal, which became another global coal price index following the API2, API4, API5 and API6, and is the only one allowing the involvement of a third-party company.
The API8 was released in May 2012, and adopted the CFR prices for imported coal with 5,500kc NAR heating value in south China. It was formed on the basis of the South China CFR Index launched by Xinhua Infolink and IHS McCloskey in 2011. Thanks to more than ten years of partnership with China’s coal users and traders, as well as a wide coal information network covering consuming areas and ports, including nearly ten power groups including the five majors and more than 20 large imported coal traders, Xinhua Infolink can avail the latest information on real trading prices, offers, inquiries and market price assessment. With crucial data collected from domestic and international market the CFR South China CFR Marker was created utilizing IHS McCloskey methodology. The average of the marker and Argus numbers have formed the weekly API 8 index.
The API8 has been gaining increased popularity among market participants in the APAC region. It is becoming a benchmark of China’s imported coal prices, with Chinese power plants, traders and overseas suppliers starting to accept the index and promoting it. On the futures market, the API8 has been listed in the CME, ICE and SGX. Trading of contracts in the first two months of 2013 has totalled 1.21mt, with February alone accounting for 0.86mt, after just 1.3mt traded in the second half of 2012.