A foreword on CoalMint Price Assessment Processes and Methodologies

 “Price assessment”, according to CoalMint is the market value it publishes for particular commodities. CoalMint price assessments are developed by collecting and analyzing trading data received from market participants including manufacturers, buyers and other trade participants through calls, mails, VOIP messages and meeting personally.

CoalMint provides price assessment for commodities relating to iron and steel industry including iron ore, coal, pellets, ferrous scrap, mill scale, sponge iron, pig iron, ingot/billet, rebar, structures, wire, pipe, HRC, CRC, HR plate, GP, silico manganese, ferro manganese, ferro chrome, ferro silicon, chrome ore, manganese ore, etc.

CoalMint has a team of market analysts, reporters and editors who are well experienced and trained in research methodology and are also responsible for monitoring markets, analyzing data, etc. The data is collected from market participants including commodity producers, consumers, transporters, processors, storage facilities, traders, brokers, and others. CoalMint editors analyze the market data (i.e. bids, offers and trades) with respect to guidelines and then publish assessments.

CoalMint sources data from industry participants whose information is considered indicative of market value. Participation in CoalMint price assessment processes is voluntary. It is indicative of the participants’ belief that price discovery strongly benefits functioning of commodity markets.

The term is a defined set of guidelines to produce consistent quality in a price assessment. Specific and well-defined methodologies are integral to CoalMint’s price assessment processes. CoalMint adopts a system operational procedure (SOP) module which is technically sound and helps better assessment of prices. CoalMint’s endeavor has always been to adopt technology as a core part of its function. Company keeps on innovating different methodology of price discovery which are globally accepted.

CoalMint price assessments follow the basic channel that is well-defined processes, strict compliance with editorial standards, being independent and impartial and use of editorial judgment. However, the methodology will vary by commodity. CoalMint has a standard methodology to each commodity market, based on the market’s status, frequency of trading, typical volatility and seasonal tendencies, among many other factors. Price is a function of time, yields the tradable value of the commodity at a given point in time, typically at the end of the trading day CoalMint has increasingly used the principle of market focused time frame for its price assessments; as the commodity markets have become more volatile. CoalMint assessments can be easily used for cross-commodity price comparisons.

CoalMint editors aim to reflect confirmed trades first and foremost. In the absence of actual trades in its price assessment processes, CoalMint reporters may consider firm bids and offers at the end of the trading day as useful information reflecting the price at which a commodity could have traded. CoalMint editors also may look at intra- and inter-market spreads as useful information on market value.

Yes. As part of its standard editorial practice to maintain the integrity of the price assessments and the quality of information it publishes, CoalMint on regular basis reviews the companies that provide that data. Reviews are conducted on a regular basis and may take into consideration a number of factors, including, but not limited to, adherence to CoalMint editorial guidelines, operational and logistical specifications and counterparty acceptance. CoalMint does not disclose the nature or scope of these routine reviews.

Yes. To maintain the integrity of its price assessment processes and price assessments, CoalMint only includes information that it deems to be of appropriate quality – that is, data that reflects bona fide transactions and market value. CoalMint maintains the right to disallow any data that does not reflect the market, does not meet its methodology or quality protocols, or is in question for any reason.

No. Trading is conducted between buyer and seller in the open marketplace. CoalMint activities are confined to its price assessment processes and the assessments those processes produce.

CoalMint uses methodologies with the goal of publishing price assessments indicative of market value. CoalMint may choose not to use inputs that are not verifiable or may distort the true market level.

CoalMint operates independently and impartially. CoalMint is in touch with government entities and policy-makers for the purpose of cross referencing of data but is not directly or indirectly regulated by any domestic or international government body.

CoalMint functions on a multi level check system and employ an internal compliance body. The compliance department is independent performs continuous reviews of the price reporting work in order to ensure adherence to methodologies and editorial standards.

CoalMint clients use its price assessments for various purposes. Market participant regularly use CoalMint prices as a basis for pricing spot transactions and term contracts while analysts use them to identify trends and patterns in supply and demand. And also use them as reference to place a market value on the commodities.