Coal price review

Page 1

April 26, 2013

India imported around 125-130 million tons of coal in FY 2013

Portwise Coal Imports- March'13

Increasing demand for coal in the country forced Indian buyers to import more coal in 2012-2013 as domestic supply did not match total demand.

0.22

HALDIA

0.21 0.30 0.46

INDIAN PORTS

JAIGARH

During the FY 2013, nearly 127.25 MnT of coal has been imported (i.e. April 2012 – March 2013), as per Indian custom data against 105 million tons in 2011-2012

0.08

Kandla

0.00

GOA

0.03

DAHEJ

Mundra

0.60 0.65 0.26 0.55 0.49 0.39

PARADIP KRISHNAPATNAM

0.58

0.00

VIZAG

Coal demand for the year 2013-14 is estimated at 769.7 MnT and the total Indian coal production is estimated to be 604.6 MnT (including captive). Thus, the estimated gap of 165.14 MnT of coal will need to be met through imports which is about 30% more compared to current import.

3.49

OTHERS

1.13

0.00

2.37 0.00 0.00

0.50

1.00

1.50

2.00

2.50

3.00

Qty in million tons

3.50

STEAM

4.00

COKING

Non-Coking Coal Market remains Stable Global Coking Coal Index Prices Particular (FOB Australia) in $/MT 24-Apr

Spot HCC prices remain downward

Platts Premium Low Vol

148.00

Spot metallurgical coal prices in Asian market continues to decline due to cautious Indian and Chinese buyers amid 153.00 158.50 good supply from Australia.

Platts HCC 64 Mid Vol

132.00

139.00 143.00 Low buying interest in the market is seen with small vol-

2 Week

4 week

umes being purchased by the end users of the material, said sources. "Demand is not impressive, but it’s moving slowly", said a source based in Singapore. Current price for Premium Low Volume is at $148/MT (FoB Australia) converting to $166/MT CFR India. Whereas, HCC 64 mid volume is at $132/MT FoB. Freight charge from Australia to India is at around $18/MT on panamax basis.

Prices for Indonesian material remain at same level due to booked shipments till May. "Movement in prices (up and down) will be seen after May as Indonesia is fulfilling the supply orders till May end at same price level", said an importer based in Mumbai.

Global Non-Coking Coal Prices Origin Destination Grade Port Port (in kcal) GCV

Avg. Freight

CNF ($/MT)

Indonesia

ECI

3800 GAR

37

12.00

49.00

Indonesia

WCI

4000 GAR

40

14.50

54.50

WCI ECI

4200 GAR 6000 NAR

43 80

14.50 18.00

57.50 98.00

Current price offers for RB1 (South Africa) is at $80/MT Indonesia (FoB Richards Bay ), whereas Indonesian 3800 GAR is at South Africa $37 and 4200 GAR is at $43/MT respectively. Supramax freight charge from Indonesia (South Kalimantan) remains stable at $12/MT for ECI and $14.5/Mt for WCI.

FOB ($/MT)

WCI - West Coast India ECI - East Coast India


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