HISTORICAL PROJECTS OF POLISH COAL INDICES

The need for creation the Polish coal price index (or indices) was first observed after Poland become the net coal importer. Although there were already some plans to create natural conditions for indices like commodities exchange, that would help standardize coal parameters for the needs of certain trade, nothing ever come out of these plans. Before Poland became net coal importer, the parity import was the only marker showing the volatility of actual steam coal prices. Increased import, and therefore increased coal trade in Poland stimulated some coal market participants to consider creating some solutions similar to the international indices.

The first mentioning of such instrument as Polish coal index mention of Polish coal price index was recorded during the Natural Resources and Energy in Domestic Economy Conference in Zakopane in October 2006, where representatives of Polish Power Exchange (TGE) were handing over some leaflets with the draft of the project called PIW (pol. Polski Indeks Węglowy), but the idea was never again brought back to the light.

The second entity that decided to pick up the gauntlet of creating Polish coal price markers was Polcoaldex, a reporting agency that was focused on energy and natural resources related topics. The company proposed 3, weekly updated indices (PCIs – Polish Coal Indices), one for every major place of trade in Poland (mines, ports and eastern border).  At the same time, the lack of such markers was noticed and highlighted by the science society gathered around the coal industry.

Probably the groundbreaking event that in the end led to advanced works on the subject was the Natural Resources and Energy in Domestic Economy Conference in Zakopane in October 2012, where U. Lorenz presented her concept of creating Polish coal price index, which was warmly welcomed by the market participants (mainly coal consumers). Shortly after, to fulfill the market gap, TGE and ARP signed partnership agreement to create such an index together.

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