This course is delivered in 8 days over a two week period, in blocks of 1.5 hours. This interactive course focuses on how the international coal markets are developing. The course identifies the price risks involved and the use of OTC and exchange traded instruments in managing these risks. You will explore both the physical and paper markets and review the different trading procedures available and the profiles of different participants in the market. We provide this course in association with our delivery partner, Perret Associates.
Start Times Days 1 - 8: 09.00 London - 13.00 Dubai - 17.00 Singapore
End Times Days 1 - 8: 10.30 London - 14.30 Dubai - 18.30 Singapore
All course payments must be received one day prior to the start date
|Price||£1,750 + VAT|
|Location||Virtual: EMEA/Asian Time Zone|
Who Should Attend
- Anyone who is affected by the changes in the international price of coal
- Energy industry personnel working in supply, trading, risk management, refining, finance, transport, exploration and production
- Coal trading and distribution companies
- Energy-related government departments and regulators
- Purchasing, planning, and finance departments in major energy consumers
- Energy publications
- Bankers, accountants, auditors and others associated with energy companies and energy financing
- Session 1: 29 November 2021 :
Introduction to the physical coal market
- Coal varieties and qualities
- Main steam coal producers, importers and exporters
- Steam coal physical flows and evolution
- Session 2: 1 December 2021.
The steam coal derivatives market
- Main products traded: history, trading volumes
- Definition and methodology of main indices and futures
- Market structure: principals, brokers, exchanges
- New products recently launched
- Session 3: 2 December 2021.
Coal Derivatives Trading Example
Coal derivatives trading examples
- Practical usage of derivatives for suppliers, end users, traders
- Hedging and arbitrage
- Trading strategies Group Based Activity
- Session 4: 6 December 2021.
Clearing and the coal market
- The benefits of clearing for the coal market and cleared coal volume trends
- The clearing process and its participants: exchange, clearing house, clearing members
- How does an ICE cleared transaction differ from an OTC trade?
- Cash flow illustration
- Potential pitfalls to avoid
- Session 5: 7 December 2021.
Forward curve and price forecast
- Difference between forward curve and price forecast
- The different shapes of forward curve: contango vs backwardation
- Historical coal forward curves and links with the physical market
- Trading the forward curve: Group Based Activity
- Session 6 : 8 December 2021
Introduction to financial options in the coal market
- Status of the option market: historical volumes, types of options
- Example of call and put options
- Live demonstration of the Black Scholes model
- Application to the physical market
- Session 7: 9 December 2021
Introduction to other commodities relevant to coal trading
- The physical dry freight market: vessel size, and pricing
- Main dry commodity flows: iron ore, coking coal, grains
- The financial freight market: indices and market structure (principals, brokers, exchanges).
- Emissions certificates, dark-spreads and spark-spreads