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ICAP Energy, the energy business of ICAP plc, announces today that it has successfully launched a global Coking Coal desk.
Coking Coal derivatives have grown in significance due to a greater need for price risk management in a highly volatile physical Coking Coal industry. Physical players have migrated away from longer term fixed price contract terms in favour of a more spot based index linked contract.
Reinforcing ICAP Energy’s reputation as an innovator in the development of the global commodities market, Coking Coal now forms part of an established global product suite to include: Thermal Coal, Iron Ore, Oils, Gas, Power, Metals, Alternative Fuels, Emissions, Softs & Agricultural Products and Freight Forward Agreements.
ICAP Energy completed its first Coking Coal trade between a European-based bank and an international trading company based in Singapore. The contract was cleared via the CME. Since its launch on 6 August 2014, ICAP Energy has executed a number of trades to position itself as a leading player in the Coking Coal market. ICAP Energy expects a considerable increase in volumes over the coming months as the number of trading participants grow.
“The launch of our global Coking Coal business underpins ICAP’s interest in ensuring the development and growth of the global commodities markets while identifying and creating trading opportunities for our customers” said George Dranganoudis, Managing Director – ICAP Energy Asia Pacific. “The CME-cleared Coking Coal contract adds much-needed transparency for participants in the steel complex. Traders now benefit from a transparent free on-board (FOB) Australia price as well as greater certainty for CFR China buyers who are able to identify relative value netback prices from the world’s leading Coking Coal exporting country.”
ICAP Energy was named “Broker of the Year” in 2013 by Energy Risk magazine in a poll of over 1,500 market participants.
