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 206.72 INR 15495 30.72 South Africa 5500 NAR USD 175.72 INR 13172 35.64

Australia 5500 NAR USD 151.99 INR 11393 23.33

Indonesia 5000 GAR USD 114.35 INR 8571 15.85

Indonesia 4200 GAR USD 76.13 INR 5707 8.71

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change ($) Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) Saudi Arabia (CIF) -5% + 8.5% INR 14522 INR 13343 ($178) INR 538.00 23.50 INR 74.96 0.39

USA (CIF) - 6.5% INR 14505($194) 22.25

Indicative Coking Coal Price

Current Month

Monthly Change (USD) Premium Low Vol HCC 64 MID Vol Semi Soft Low 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 444.68 395.40 397.58 356.38 304.63 318.97 317.03 598.25 509.25

35.43 6.18 34.80 4.22 34.81 41.53 41.66 22.75 -6.44

South African Coal News:

*One of the biggest announcements from last year’s COP26 climate talks was a pledge by some rich countries to provide $8.5 billion to help South Africa transition away from coal. Now different interests within the country are tussling over how that money should be distributed. Eskom Holdings SOC Ltd is proposing that a substantial portion be used to expand the grid in order to encourage more investment in renewable electricity. But it faces competition from the South African department of trade and industry, which is also seeking funds for two programs- boost electric-vehicle production and green hydrogen in a bid to position South Africa as a major producer as interest grows in its use in decarbonizing activities. * South Africa’s Minerals and Energy Minister Gwede Mantashe rallied behind the nation’s coal producers, emphasizing that the fossil fuel will still be used for decades. Mantashe, a former coal miner and union leader, told the CEOs of mining companies that their product shouldn’t be abandoned “prematurely” and highlighted that the industry employs nearly 90,000 workers in a nation with record-high unemployment. The statement clashes with plans for the country, which relies on coal to produce more than 80% of its electricity, for transition to cleaner energy sources.

Australian Coal News:

* Despite China clearing millions of tonnes of Australian coal stranded at its ports late last

year amid crippling energy shortages, analysts do not expect China to lift its unofficial ban on Australian coal cargoes any time soon and said the long-running restrictions could persist for at least another two years.

*The price of benchmark Australian thermal coal rose this month to trade near record highs, providing a short-term boost to producers but increasing the risks of longer-term pain. The Newcastle index, as assessed by commodity price reporting agency Argus, climbed to $258.59 a tonne in the month to Feb. 11, up from $246.34 the prior month and close to the all-time high of $261.11 from the week to Jan. 28.

* Australia's thermal coal market is expected to see rising interest in the near term even as Indonesia eases its export ban amid increasing omicron cases and persistent rains leading to supply tightness. Market participants had expected Australian prices to soften after Indonesia relaxed its export ban in Jan. 2022, anticipating an easing of some pressure from the Australian coal in the global supply chain. However, prices have remained elevated and sources expect the trend to continue in the near term. Wet weather conditions and omicron spread have limited production at mines, leading to berthing delays at Newcastle, sources said.

* Australian coal stranded at the Chinese ports have been largely cleared ahead of the Chinese New Year festival this month, but no sign of further imports could be seen, market analysts say. Imported Australian coal to China in 2021 was 66.37 million tons less than in 2020, a drop of more than 85 percent year-on-year, amid the disruption by the soured relations between China and Australia.

Indonesian Coal News:

*Transparency regarding the allocation of coal to the domestic market in Indonesia, some degree of demand-supply predictability and clarity on regulations over failure to meet local supply requirements is essential to avoid a crisis in the future, industry experts said. Indonesia's domestic coal stocks slipped to critically-low levels at state-owned PLN, in December 2021 as producers failed to meet their domestic market obligation, or DMO. This led to a threeweek export ban in January, causing disruption in the global markets and a rise in prices as supply fell extremely short.

* China has turned to Indonesia for coal following fallout with Australia. The lifting of export controls of coal from Indonesia may come as good news for China. China remains one of the largest importers of Indonesian coal, importing as much as 123 million tons of it last year amid its decision to ban import of Australian coal.

*Indonesian coal prices are likely to decline in the near term as Chinese buyers stay on the sidelines amid a fall in the latter's domestic coal prices. The development comes after China's top economic body, the National Development and Reform Commission, or NDRC, said that the price of 5,500 kcal/kg NAR will be considered stable below Yuan 900/mt ($142.07/mt) at ports.

*Indonesia has fully lifted a one month ban on thermal coal exports ending uncertainty over the coal-rich nation’s blueprint towards its future coal plans. According to authorities, the ban has been lifted due to satisfactory replenishment of domestic inventories, with the supply suspension having given significant support to seabourne prices in recent weeks. However, Shipment from the archipelago may still be limited.

US Coal News:

* Central Appalachia weekly coal production surged to the highest level in over nine years, according to data released by the US Energy Information Administration. The increased CAPP output encompasses both met and thermal coal and is due in part to global tension

around the Russia/Ukraine situation. An increase in long-term coal prices for 2022 also contributed to the rise.

*US thermal coal exports surged to four-year high 36.17 million mt in 2021, up 47.9% from 2020, according to US Census Bureau data released in February this week. December thermal coal exports totalled 3.12 million mt, up 0.7% on the month and 18.7% from December 2020. December coal exports were at a sixmonth high —the highest monthly volume since 3.25 million mt in July. Of the thermal volume shipped in December, 2.44 million mt was bituminous, down 4.9% from November but up 10.6% from December 2020, and 608,817 mt was sub bituminous, up 16.1% on the month and 138.2% year on year.

* Communities devastated by the collapse of U.S. coal production are also losing their bank branches, removing a catalyst for economic transition when it is most needed. A band of 22 coal mining counties across West Virginia, Kentucky and Virginia have watched coal production decline to a quarter of the level seen just over a decade earlier, and coal jobs have fallen by 69.5%, as the U.S. shifts its power mix to lower-cost, lower-emission generation in the battle against climate change. Without this critical industry, the local population has declined, and banks have responded by shuttering branches.

Pet Coke News:

* Price of petcoke in the US Spot market has remained unchanged this month. The Mediumsulfur based US Gulf Coast petcoke market has remained quiet while no new bids were heard in the West Coast of the United States as well. Top destination for US petcoke in recent months has been Japan, closely followed by China in the second spot. * India’s Directorate General of Foreign Trade on Thursday said it has notified the procedure for allocation of quota for import of calcined pet coke for use in the aluminium industry, and raw pet coke for CPC manufacturing industry for 2022-23. In a notification, the Directorate General of Foreign Trade (DGFT) said that the imports will be subject to guidelines laid down by the environment ministry. It said that all eligible entities which want to avail the quota should apply for import license along with state pollution control board certificate. * US petcoke prices have surged this month showing a bullish trend. High Ocean Freight may have caused tepid interest from Indian buyers. Though prices of Mediterranean petcoke continued to fall this month amid the Lunar New Year holidays. Analysts observed that such fall may have some Asian buyers to look for mid-sulfur, petcoke from Turkey.

Shipping Update:

* The dry bulk market has been experiencing some positive momentum of late. In its latest weekly report, shipbroker Allied Ship broking said that “the dry bulk market has moved on a positive track as of the past couple of weeks or so. Following the typical softening in freight conditions during the early part of the year, many would argue that this recovery of late has to some degree been anticipated. *The end of China’s New Year Celebrations is bound to bring with it a restocking process, which could help the dry bulk market move forward and recover part of the lost ground of the past few months. Freight transport company Intermodal said, after the Chinese New Year Eve, February 2022 displays small signs of a dry bulk market recovery with the BDI moving upwards at a constant pace. As anticipated due to the improvements in the dry bulk freight market a more positive sentiment prevails among shipping participants which pushes the asset prices again to upper levels. *Firm seaborne thermal coal prices and volatile freight rates have slowed down interests from Asia’s ex-Chinese markets like Thailand, Vietnam and India. These markets are expected to return in March on hopes that prices and freight would ease for procurement in April.