Known as Platts Kalimantan 4200, the assessment reflects the commercial and merchantable value of thermal coals loading free-on-board in Kalimantan, Indonesia, one week to 45 days forward.

It applies to coal with an energy-producing caloric value of 4200 kilocalories per kilogram, total sulphur content of 0.6%, typical ash content of 7% and total moisture of 35%, on an as-received basis.

Minimum cargo size reflected is 60,000 metric tons.

“With coal from Colombia and the US flooding into Asia, we believe the Kalimantan 4200 provides the Asia-Pacific market with a key in-region barometer of thermal coal values,” Platts international coal senior managing editor James O’Connell said.

“In particular, India and China, both with aggressive power plant builds underway, will likely find it an important valuation tool.”

Platts first introduced Indonesia-focused thermal coal assessments more than 10 years ago with the launch of its higher calorific Kalimantan 5900 and Kalimantan 5000 assessments.

Kalimantan 5900 forms part of the Indonesian government’s formula for pricing coal known as Harga Batubara Acuan.

“Demand for low calorific thermal coal has surged to a 100 million metric ton market since the global financial crisis as countries with growing populations have chased after cheaper coal and more cost-effective electricity production,” O’Connell said.

Platts Kalimantan 4200 will be published in the daily Platts Coal Trader International, the end-of-day service Platts Market Data-Coal and in the real-time Platts European Power Alert.