As the U.S. recovers slowly, Europe’s soverign debt crisis persists. Currency volatility relative to the U.S. dollar has pushed up local proces for raw materials, labour and equipment in key mining regions around the world, including Australia, South Africa, Canada and Latin America. Changing operational and capital costs make a question about future coal prices. Global demand is also a very complex issue. An attempt to create a coal index for a Polish market (POLPX) seems to be a very good idea.
-The Polish market is very based on spot contracts. It is not liguid, at all. The trasactions are done on a very long term bases and if they was liquidated in the market this could help producers, consumers, traders, and everybody involved in industry to make better trade and reach a more optimum level of transactions. So, the price level would be more according to that how the market functions, and rather with stable price which is very different from the market reality-explains Anish Saraf, manager at Polcoaldex.
-If we are able to link these producers, consumers, and traders together, to be able to make transactions on an on-line platform or even to have information from key industry players regarding the prices they are interacting on we would create an indicated price level where all transactions are transparent and the industry is able to respond better and work more efficiently-gives the detailed picture Saraf. Creating a trade index is the milestone in building a new business model.
Polcoaldex.pl is the ultimate news portal on coal, coke, biomass and freight markets. They mainly operate in the area of Poland and CIS countries. -Basically, we write user information on coal and biomass trade markets. We work together with the Polish Power Exchange to be able to create an index for Poland, for imported coal. As Poland is now not not an importer, rather an exporter. So, we would like to create an index for imported coal on Polish Baltic ports and Eastern border terminals to help the Polish consumers and traders work is better with prices-he adds.
Read also: Coal Market in Poland – http://business-relations.pl/index.php?option=com_content&view=article&id=1279:rynek-wglowy-w-polsce&catid=58:case&Itemid=89
