Thermal & Coking Coal Trading Guide
Coal is traded as thermal (steam) coal for power generation and coking (metallurgical) coal for steel-making. Contracts are priced against Newcastle, ICE Rotterdam and Richards Bay benchmarks with quality adjustments for calorific value, ash, sulphur and moisture.
Pricing benchmark
Newcastle NAR 6,000 (globalCOAL NEWC), ICE Rotterdam API 2, Richards Bay API 4, HCC PLV (Australian premium hard coking)
Graham Act (signed 18 Sep 2026) and EO 14436 (16 Oct 2026, 91 FR 66627): 500% additional duty on Russian goods and 100% on goods from certain buyers of Russian oil/gas and evasion facilitators were enacted, but are WAIVED under Sec. 4 of the order as of 21 Oct 2026 and are not collected. The waiver can be withdrawn. Federal Register
Commercial grades
| Grade | Specification | Notes |
|---|---|---|
| RB1 (Richards Bay Grade 1) | NAR 6,000 kcal/kg, sulphur <1%, ash <15% | The premium South African export grade; API 4 basis. |
| RB2 | NAR 5,500 kcal/kg, sulphur <1%, ash <20% | India-facing grade. |
| RB3 | NAR 4,800 kcal/kg, sulphur <1.2% | Sub-bituminous; power blenders in India, Pakistan. |
| Indonesian GAR 4,200 | GAR 4,200 kcal/kg, sulphur <1%, moisture 30-38% | Kalimantan origin; China and India buyers. |
| Indonesian GAR 5,800 | GAR 5,800 kcal/kg, sulphur <0.8% | Higher-rank Kaltim/Sumatra product. |
| Australian NEWC 6,000 | NAR 6,000 kcal/kg, sulphur <0.8%, ash <14% | Benchmark thermal grade. |
| Premium Low-Vol HCC | CSR >65, VM 20-24%, sulphur <0.6% | Coking coal for integrated steel mills; priced FOB DBCT. |
Typical technical specifications
| Calorific value | GAR / NAR / ADB - always specify basis |
| Total moisture | 8 - 38% |
| Ash content | 12 - 20% for thermal; <10% for HCC |
| Sulphur | 0.4 - 1.2% |
| Volatile matter | 28 - 40% (thermal), 20 - 30% (HCC) |
| Ash fusion (IDT) | >1,250°C for coking; blend-critical |
Top exporters
- Indonesia· Largest thermal coal exporter; sub-bituminous focus
- Australia· Premium thermal + HCC; DBCT / HVCC / Gladstone
- Russia· Kuzbass origin; sanctions restrict EU/G7 routes
- South Africa· Richards Bay; RB1/RB2/RB3
- United States· Appalachian met coal; Powder River thermal
Calculators to price a cargo
Thermal & Coking Coal is classified under HS 2701. Open the full HS profile →
Frequently asked questions
GAR (gross-as-received) is the total heat including moisture; NAR (net-as-received) deducts moisture and hydrogen combustion; ADB (air-dried basis) sits between the two. Indonesian coal is normally quoted GAR, South African/Australian NAR.
All three ship out of Richards Bay Coal Terminal. RB1 is the premium API 4 grade (NAR 6,000, S <1%, ash <15%). RB2 drops to NAR 5,500 for India. RB3 is a lower-rank NAR 4,800 blend.
Hard coking coal is benchmarked against Premium Low-Vol (PLV) FOB DBCT with adjustments for CSR, sulphur, VM and ash. Semi-soft and PCI coals are priced at discounts to PLV.
The EU, UK, US, Japanese and Australian import bans on Russian coal (EU ban in force since August 2022; coal has no price cap) block direct imports into EU, UK, US, Japan and Australia. Third-country blending remains a compliance risk - screen every counterparty and origin certificate.
Related guides
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