
Guide · 3 min read
Reading a coal specification
Five numbers decide what a tonne of coal is worth. Here is what each one means.
01Calorific value
How much heat the coal gives off, in kilocalories per kilogram (kcal/kg). Typical traded thermal coals range from about 4,200 to 6,300 kcal/kg. More heat means a higher price.
02Moisture and ash
Moisture adds weight but no energy. Ash is the rock left after burning. Both lower the value and raise handling costs for the buyer.
03Sulphur and volatile matter
Sulphur causes air pollution and is limited by many power plants, so low-sulphur coal earns a premium. Volatile matter affects how easily the coal ignites and burns.
04How it's checked
Independent inspectors take samples while the vessel is loaded. The laboratory results set the final price under the contract's adjustment formula.
Next guide
Troy ounces, carats and TREO
