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 90.38 INR 6612 -0.28 South Africa 5500 NAR USD 62.62 INR 4581 3.81

Australia 5500 NAR USD 56.21 INR 4112 1.73

Indonesia 5000 GAR USD 74.85 INR 5476 16.09

Indonesia 4200 GAR USD 47.67 INR 3487 7.94

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) -5% INR 9432 INR 0.00 Saudi Arabia (CIF) + 8.5% INR 7901 ($108) -4.00

USA (CIF) - 6.5% INR 8194 ($112) -6.00 INR 73.16 -0.43

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

126.66 216.03 109.94 196.31 91.81 101.94 96.00 408.75 431.75

25.11 25.58 16.51 22.78 12.96 19.29 15.35 63.35 45.55

South African Coal News:

*In spite of the Government’s move to replace coal with renewable and the near impossible situation to finance the dry fuel with only a handful of backers in the country, the next five to 10 years will likely still see coal play an important role in South Africa’s energy sector, according to South Africa based exploration and production company Wentworth Resources. *South African coal exports were always one of the dry bulk market’s most important trades. In 2019,the country exported a total of 67.4mln tonnes of coal by sea. South Africa’s economically recoverable coal reserves are estimated at between 15 and 55billion tonnes of which 96% of reserves are bituminous coal at present. *The overwhelming volume of South African coal –70-million-tonnes-plus of coal exported a year – is continuing to go to India, with notable demand also continuing from Pakistan and Sri Lanka. The South African coal was trading around the $100/t mark this week.

Australian Coal News:

* Hopes of an early resumption in the Australian coal trade to China have been dashed after it was found that about 50 ships carrying Australian coal still stranded off the Chinese coast as of last month, and amid unresolved political and trade tensions between the two countries. *China is considering accepting some stranded Australian coal cargoes, an effort that would help easea logjam of vessels that have stacked up off its coast for months. The shipments that could be cleared

are those that arrived before a ban onAustralian coal went into effect even as the broader prohibition on Australian coal remains in place. *The value of Australia’s coal exports increased by 26% in the month of December, compared with November, despite the ongoing trade tensions with China. Data from the Australian Bureau of Statistics (ABS) has shown that coal exports were worth A$3.7-billion to the Australian economy in the month of December, as exporters looked to fill gaps in international markets.

Indonesian Coal News:

* Indonesia’s monthly coal benchmark price (HBA) is set at $75.84 per tonne for January, up from $59.65 a month earlier Refinitiv data showed, it was the highest pricing since June 2019. Demand from China, Indonesia’s second biggest coal export destination, has helped prices recover. * Indonesia’s Ministry of Energy and Mineral Resources has set the country’s coal production target at 550 million tonnes for next year, a figure unchanged from this year, due to the raging pandemic. The Indonesian Coal Mining Association (APBI) previously said it expected coal demand to really start recovering in the second half of next year. *In spite of currently having abundant coal resources, especially thermal coal, Indonesia is potentially losing state revenue of around USD 1.64-2.5 billion per year from the coal tax and non-tax revenues as the dry fuel market is gradually shrinking.

US Coal News:

* Annual energy consumption from renewable sources in the United States in 2020 exceeded coal consumption for the first time since 1885, according to the U.S. Energy Information Administration’s (EIA) ‘Monthly Energy Review’. The change reflects the continued decline in the amount of coal used for electricity generation over the past decade and growth in renewable energy, mostly from wind and solar. * The Biden administration ordered a 60-day halt on issuing new oil and gas leasing and drilling permits, as well as new coal mining permits, for federal land and waters. The order doesn’t limit preexisting operations under valid leases. * US coal carload originations rose to a six-week high 63,474 in the week that ended Jan. 23, up 10.1% from the 57,665 a week earlier. However, the latest week was down 7.2% from the year-ago week and 21% lower than the five-year average. It was also the lowest total for the corresponding week in over 11 years.

Pet Coke News:

* With the cement makers in India being keen on using Australian thermal coal as the fuel alternative, Indian pet coke prices moved upward in 2021 amid tight supply with limited offers. The petcoke price of India’s Reliance Industries Limited and Chennai Petroleum Corporation has seen a surge in January’21. * US petcoke market has remained stable in 2021 with a slight pickup in spot activity expected to come over the next few weeks. US Gulf Coastspot activity has remained largely subdued, keeping prices flat, cargoes are being traded from the West Coast. *In spite of limited supply, the US petcoke demand is expected to firm up in the coming weeks, keeping prices at a high, even as supply continues to be limited. While production is expected to remain stable, demand is pushing up, notably in India several sources said this week.

Shipping Update:

*Ocean carriers are taking all available measures to improve the speed and efficiency of cargo movement including employing all available vessel tonnage after overcoming the unprecedented downturn during the COVID period when demand dropped some 20-30% in Q2 2020. However, as cargo volume rose, carriers redeployed those assets as quickly as possible with inactive fleet numbers at just 2.5% at the end of 2020. *Visakhapatnam Port appears to be all set to retain its third rank in handling cargo after Kandla and Paradip during the current financial year. The port handled a throughput of 51.95 million tonne as on December 31, 2020, as against 53.54 mt during the corresponding period last year. * The spread between freight rates on the spot market has reached an “unprecedented” level, with wideranging implications for container shippers this year. Freight rate benchmarking firm Xeneta showed how the average spot price had jumped some 2,000% over the past five years. However, as in previous years the spread between the lowest and highest short-term freight rate was around $1,000, the current spread ranges between $6,000 and $11,000.

CCAI Monthly Newsletter January 2021 | 27