International Coal & Emissions Trading Programme

This two day course is brought to you through the partnership of ICE Education and Navitas Resources. The purpose of the programme is to provide a clear overview of the international coal and rapidly developing emissions markets, the interrelationships, key price drivers and how participants are currently using derivative markets to meet their price risk management needs. You will also explore key linkages with other markets such as freight to provide an holistic view of the situation.

Course Information

Price £1400.0 + VAT
Duration 2 days
Location Shanghai
Available Dates

Who Should Attend

This is a fundamental course designed for those who are new to the steam coal industry and those who are seeking a refresher, including:

  • Coal producers and buyers
  • Traders, importers, and exporters
  • End users and consumers of steam coal
  • Financiers, Investors and Analysts involved in the coal sector
  • Shipping and Port sectors
  • Logistics and Procurement Specialists
  • Research and Risk professionals

Booking Information

Tel: +44 (0) 20 7065 7706

Course Content

DAY 1

SESSION 1

Trading the physical coal market

  • The commoditisation of thermal coal
  • Pricing benchmarks
  • The main market players
  • Current physical coal trading instruments and trends
  • Standard coal trading agreement (SCoTA) Overview and role
  • Prospects for product development

SESSION 2

  • Price drivers in the thermal coal market
  • Regional analysis of key price drivers
  • Power market and Cost of Carbon co2. - dark spread, clean dark spread calcs

SESSION 3

  • External Risk Factors
  • Key country coal industry regulatory risk factors reviewed
  • Political risk factors reviewed
  • Environmental policy risk factors reviewed

SESSION 4

  • Emissions Trading China, Korea, EU, Kyoto
  • Introduction to the emission market
  • UN Climate Change Process
  • Regional Review of Emission Reduction Initiatives
  • Managing Emissions Risk

Case Study: The EU Emission Trading Scheme

  • Case Study: China's Emission Reduction Schemes
  • Planned Korea Emissions Trading
  • Australia Link to EU Trading Scheme
  • Case Study: Implementing and Managing an Emission Strategy
  • Understanding carbon trading principles & simulation

DAY TWO

SESSION 5

  • Introduction to other commodities directly 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).

SESSION 6

  • The coal derivatives market
  • Main products traded: history, trading volumes
  • Definition and methodology of main indices and futures
  • Market structure: principals, brokers, exchanges
  • Review of New standard contracts recently launched

SESSION 7

  • Coal derivatives trading examples
  • Practical usage of derivatives for suppliers, end users, traders
  • Hedging examples arbitrage
  • Regular market Trading strategies review
  • Price forecasting
  • Market Analysis techniques - derivatives pricing

SESSION 8

  • Risk Management best practice
  • Trade Management techniques
  • Introduction to Risk Metrics, VaR applications and understanding