Coal Futures

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Coal accounts for 28% of the world's primary energy consumption and is set to remain an energy source for decades to come, particularly in Asia.  Whereas oil and gas markets have been well serviced by futures exchanges for some time, over-the-counter (OTC) derivative and futures markets for coal are only now just starting to emerge.

The introduction of a coal futures and options market (FOB Newcastle1) at ASX will provide additional tools for firms with exposure to sea-borne thermal coal in the Asia-Pacific to manage their price, counterparty and delivery risks. The range of financial market participants also wanting to trade coal futures is diverse and this bodes well for liquidity.

The market for sea-borne thermal coal in the Asia-Pacific, which accounts for 70% of the global market, underpins the generation of electricity in several major Asian economies.

Coal Futures - Asian Imports Account for 70% of the Global Market

Asian Imports Account for 70% of the Global Market

1 Port Waratah Coal Services Limited (PWCS) 
The information provided on this website relates to ASX's current proposal to introduce futures contracts over thermal coal. Rules relating to the proposed futures contracts are subject to the non-disallowance process under the Corporations Act. The information provided and proposals discussed may be subject to change as a result of this process consultation with interested parties or other factors. ASX makes no representation or warranty with respect to the accuracy, completeness or currency of the content. The content does not constitute financial advice. Independent advice should be obtained before making investment decisions. To the extent permitted by law, ASX excludes all liability for any loss or damage arising in any way including by way of negligence.

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