Monthly Summary Of Imported Coal &Petcoke

Indicative Imported Coal Price

COAL (kcal/kg) Monthly Price - FOB Monthly Price- FOB Monthly Change (USD) South Africa 6000 NAR USD 137.81 INR 10217 15.46 South Africa 5500 NAR USD 110.75 INR 8210 12.41

Australia 5500 NAR USD 95.92 INR 7111 8.79

Indonesia 5000 GAR USD 102.97 INR 7634 10.09

Indonesia 4200 GAR USD 73.45 INR 5445 6.46

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change ($) Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) -5% INR 13914 Saudi Arabia (CIF) + 8.5% INR 11751 ($159) INR 1131.00 16.50 INR 74.14 -0.46

USA (CIF) - 6.5% INR 12678 ($171) 7.00

Indicative Coking Coal Price

Current Month

Monthly Change (USD) Premium Low Vol HCC 64 MID Vol Semi SoftLow Vol PCI Mid Tier PCI MET COKE 62% CSR

FOB CFR China FOB Aus CFR China FOB Aus FOB Aus FOB Aus CFR India FOB N China 226.34 366.00 198.69 327.38 161.75 166.56 165.19 421.75 491.25

18.79 54.50 19.19 55.15 18.47 16.76 16.44 26.25 48.45

South African Coal News:

*Mineral Resources and Energy Minister Gwede Mantashe has noted that coal is still an important part of South Africa’s energy mix. Mantashe said coal is currently one of the best-performing commodities in South African mining, and rail and ports are its obstacles. Therefore the country is not going to be in the process of aborting the coal economy, because it is not desired in the future. *Eskom is not definitively turning its back on fossil fuels. But the South African state-owned company intends to close several of its coalfired power stations operating in the country. The objective for the current decade is to reduce its coal-fired power generation capacity from 8000 to 12000 MW. This represents 30% of its current installed capacity. The company has an installed capacity of 42,000 MW. * The prospects for South African coal production remain strong for the coming decades. Strong international coal prices of around US$130/t have raised the sellers' expectations over exports, with most of South Africa’s export coal going to Pakistan in recent months while China is also opening up opportunities for imports from South Africa following its trade wrangling with Australia back in 2020. *South Africa, which is reliant on coal for nearly 80% of its power generation, is turning towards gas based power in order to cut its emission norms. Plants in the country are to use natural gas to produce at least a quarter of almost 12,000MW of additional power by 2030 while recent efforts to develop new coal projects in South Africa have been thwarted by court challenges or a lack of financing.

*Record-high thermal coal prices and recordlow asset values are creating a complex conundrum for Australian coal producers, as they try to navigate how best to sustain their operations. Australian high-grade thermal coal prices are high which has been briefly seen during the mid-2008 spike, yet the mediumterm outlook is poor, given the increasing push to carbon neutrality. The situation has caused UK-Australian mining firm BHP to put a negative value on its thermal coal assets this year. *Four major Australian banks, The Commonwealth Bank, ANZ, Westpac, and National Australia Bank (NAB) are closing their books on fossil fuel financing. In response to shareholder pressure, they are increasing their commitments to sustainable lending and reducing their exposure to climate risk. They have set various timelines to exit direct financing of thermal coal mining. *Prices have improved for Australian coking coal exports, as trade flows have adjusted to Beijing's restrictions on imports of Australian coal. The price distortion seen earlier this year has been resolved mostly. Based on the recovery, miners like US-Australian mining firm Coronado Coal expects to turn to a profit in July-December on strong sales to India from its Australian operations as a global recovery from the Covid-19 pandemic gains pace. * Australia has placed the key coal-producing regions of Newcastle and Hunter under a snap one-week lockdown to contain a Covid-19 outbreak, raising the prospect of disruptions to worker movements and coal supplies should the restrictions drag on. The heightened restriction of movement will eventually result in manpower shortages and have an impact on the coal output, which is already tight.

Indonesian Coal News:

*Indonesia has reversed coal export bans for three companies after they complied with domestic market obligations. After Indonesia suspended coal exports from 34 coal mining companies earlier this month after it said the companies failed to sell an obligatory 25 per cent of their production to the domestic market as of now. Three companies, including PT Arutmin, a subsidiary of the country's top coal producer PT Bumi Resources, have been given their coal export licenses back. *Indonesian coal mining services and heavy equipment company United Tractors (UNTR) is planning to diversify into the downstream coal and other sectors through its subsidiary Pama. The company is looking at the possibility of expanding into the coal downstream and carbon capture technology sectors to protect its businesses against growing pressure against coal use, it said. *Indonesia has suspended coal exports from 34 coal mining companies it said failed to meet domestic market obligations between January and July this year. The energy ministry said that sanctions had been issued on some companies for violating market rules. Of the 34 companies listed in the document seen by CNBC Indonesia, four were members of the Indonesia Coal Miners Association (ICMA). *Indonesia set its coal benchmark price at the highest in at least a decade in August as demand from China, Japan and South Korea grew. Indonesia set its August coal benchmark price at $130.99 per tonne, 13.6% higher than July. This is the highest price since at least April 2010. The rise in global coal prices is largely attributed to stronger demand by countries like China, Japan and South Korea as they begin to recover from the coronavirus pandemic.

US Coal News:

*U.S coal shipments to China leaped more than 30-fold in the second quarter, as miners took further advantage of the Asian powerhouse’s prolonged trade dispute with Australia. Deliveries surpassed 2.4 million tonnes compared to just 75,000 tonnes a year earlier. The surge fueled a 53% jump to 20.6 million tonnes in U.S. coal exports, along with rebounds in India, Japan, Brazil and most other major markets following 2020 pandemic slowdowns. *As US coking coal prices continue to surge upwards, tight supply fundamentals and high Chinese domestic coking coal prices point to further upside despite weakness in the steel

and iron ore markets. While Chinese mills have consistently indicated that US offers are coming above their expectations, the recent willingness to accept these offers, which have risen by as much as $10-20/t each time from the last done deal, indicates that these buyers have little alternative. *For the past four weeks, prices per short tonne of US coal have remained steady, as power companies reignite coal-fired plants and manufacturing sectors have ramped up leading to gains for three of largest coal producing companies in the US- Arch Resources, Peabody Energy and Natural Resource Partners. *US coal exports reached a two-year high in June, helped by a surge in shipments to China, India and Japan. A total 7.1mn metric tonnes of coal left US ports during the month, US Census data released today show. The last time exports were higher was in June 2019. Exports for the first half of 2021 also were at a two-year high of 42.8mn st. Thermal coal shipments for January-June stood at 20.8mn st, which was 46pc above first-half 2020 levels.

Pet Coke News:

*Demand of petcoke in the Mediterranean region has gone up to a nearly six-year high in the week though long-standing issues kept spot demand low. The high price of US Gulf Coast petcoke – the main supplier to the Mediterranean region has caused the demand to be affected as the buyers had earlier been making the switch to more competitively priced thermal coal. *Export volume of US based fuel grade petcoke dropped to four months low as per data available till June '21. Meanwhile, calcined petcoke exports also at a four-month low. China remained the top export market for US fuel-grade petcoke, totaling 3.25 million mt through June, with Mexico and Japan acquiring second and third place. * Petcoke users in India have not imported petcoke in the last few months even as the price of the alternative fuel rose, sources said. They continued to prefer US-origin high-CV coal as FOB prices continued to rise and freight prices also remained on the higher side. Prices offered by Indian petcoke producers including Reliance Industries, Indian Oil have increased recently.

Shipping Update:

*The amount of coal shipped from U.S. shores rose during the second quarter, buoyed by robust demand from international markets, particularly in Asia. Exports of U.S. coal jumped 52.5% year over year to 20.6 million tonnes in the June quarter from 13.5 million tonnes. Coal shipments from New Orleans, which exports a significant amount of Illinois Basin coal, surged in the second quarter to 2.8 million tonnes, 398.5% more than in the same quarter in 2020. *The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, jumped to its highest level in over a decade this week, powered by strong demand across vessel segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, jumped about 3% or 93 points at 3,503, the highest level since mid-2010 while The capesize index rose 224 points, or 5.1%, to 4,608, a fresh record since May 12. *Australia’s largest coal export facility at Newcastle is positioned for a strong August, with the Newcastle Coal Infrastructure (NCIG) terminal returning to normal operations and the Port Waratah Coal Services (PWCS) terminals ramping up to full capacity. The NCIG shiploader, which has been out of operation since November, has resumed operations and potentially adding 1.25mn t/month in export capacity at the port. The PWCS terminals ramped up exports to 10.57mn t in July from 9.26mn t in June and from 6.86mn t in July 2020. *To support the shipping industry’s decarbonisation drive, the Baltic Exchange has calculated a set of indicative CO2 emissions figures and Energy Efficiency Operating Indicator (EEOI) reference values. Initially these cover the standard Baltic vessels trading on the various dry bulk routes for which we provide spot freight assessments.