Coal news and updates

IntercontinentalExchange on Monday launched a new US coal futures contract for Illinois Basin coal, the first coal futures contract for the US market since October 2014.

 

The futures contract will be financially-settled against a monthly average of Platts daily physical assessments for 11,800 Btu/lb Illinois Basin coal.

 

Futures can be an effective tool for coal producers and coal buyers to hedge their exposure to the coal market, and market participants have been seeking a financially-settled future contract for the Illinois Basin, which is the second largest production region in the US.

 

In 2015, mines in the Illinois Basin -- a mixture of underground and surface mines in Indiana, Illinois and Western Kentucky -- produced 128 million short tons of bituminous thermal coal.

Source: Platta