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 176.00 INR 13125 40.80 South Africa 5500 NAR USD 140.08 INR 10446 29.77

Australia 5500 NAR USD 128.66 INR 9595 26.69

Indonesia 5000 GAR USD 98.50 INR 7345 -0.68

Indonesia 4200 GAR USD 67.42 INR 5028 -1.30

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change ($) Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) -5% INR 13984 Saudi Arabia (CIF) + 8.5% INR 11523 ($155) INR -1696.00 -7.50 INR 74.58 -0.70

USA (CIF) - 6.5% INR 12772 ($171) -12.75

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 409.25 389.22 362.78 352.16 269.81 277.44 275.38 575.50 515.69

69.40 39.57 71.08 30.41 50.56 43.04 42.18 9.50 54.89

South African Coal News:

* South African department of Mine management has recently started a cleanup operation. Coal mining wastewater spilled near a historic South African game park last month, raising community concerns about the environmental effects. An estimated 1,500 cubic metres of liquid known as slurry leaked after a dam collapsed. Though there have been no confirmed reports of human, domestic livestock casualties, the incident has caused concern over people living in the proximity of coal mines in the country.

* South African power utility Eskom Holdings SOC Ltd. will burn more coal than it planned over the this year amid delays to government program to procure electricity from private producers. State-owned Eskom expects to generate 2% more energy from coal for the ongoing financial year. South Africa is struggling to solve a power crisis caused by Eskom’s aging coal-burning generation fleet, which is prone to breakdowns that result in electricity

outages. The government’s plans to address the problem by adding supply from private producers has been prone to delays including court challenges.

* According to Statistics South Africa, the domestic mining production increased by 5.2% year-on-year in 2021. Coal production suffered a blow as production of the dry fuel had gone down by 7.9%, contributing -2.2 percentage points. South Africa’s mineral sales at current prices increased by 22.2% year-on-year in November 2021. Sale of coal was up by29.7%, contributing 5.6 percentage points.

Australian Coal News:

* The Australian economy is largely dependent on coal. It is the second-biggest exporter of coal in the

world (behind Indonesia) and coal is the nation’s second-biggest export. The nation still relies on coal for the majority of its energy mix despite its pledge on climate change. Australia aims to cut emissions by just 26% from 2005 levels by 2030 which is almost half of the US and UK. Canberra has also resisted joining of two-thirds of countries who have pledged net zero emissions by 2050. Australian coal markets have recently been buoyed by Asian markets desperate for coal amid a global energy crunch.

* Australia accounted for bulk of coking coal imports by India as the country’s demand for coking coal hit 8 months high towards the end of 2021. Australia’s export to India in November last year had jumped by 46pc on the year and by 30pc on the month to 4.35mn t, as per the latest data available. Australian premium hard coking coal prices on a fob basis rose to an all-time high of $410/t in September. The price stood at $390/t this month.

* China's ban on Australian coal clearly benefited North American coals in 2021. While Australia remained the largest seaborne met coal spot supplier at 63% in 2021, other origins including Indonesia and Mozambique recorded steady increases. Spot market liquidity could rebound if China starts to import Australian coal once again according to analysts.

* 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, sources said this month. Market participants had expected Australian prices to soften after Indonesia relaxed its export ban from Jan, 20, 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 as wet weather conditions and omicron spread have limited production at mines, leading to berthing delays at Newcastle..

Indonesian Coal News:

*Indonesia has allowed 37 vessels loaded with coal to depart, as the world's biggest thermal coal exporter relaxes its ban on shipments. The ban implemented on 1st January has been eased for miners that have met a requirement to sell a portion of their output for local power generation, after the state utility procured enough coal to ensure 15 days of operation, the Ministry said. There were about 120 vessels either loading or waiting to load off Indonesia's coal ports in Kalimantan on the island of Borneo following the uncertainty over export ban.

*Indonesia's state utility Perusahaan Listrik Negara (PLN) said that together with the energy ministry it was strengthening a coal delivery monitoring system to ensure enforcement of domestic sales rules and energy security. Coal deliveries to local power plants will be monitored throughout the supply chain by PLN and the energy ministry's mineral and coal department and miners would receive automated warnings for any late shipments.

* Indonesian President Joko Widodo launched construction of a $2.3 billion coal gasification plant earlier this month in a bid to slash the country's liquefied petroleum gas (LPG) imports while optimising its coal resources. The plant is designed to utilise 6 million tonnes of low rank coal to produce 1.4 tonnes of dimethyl ether (DME) annually, which can reduce Indonesia's LPG import by 1 million tonnes per year.

* The Indonesian coal industry is well refined and it can provide coal to Pakistan for power projects being developed under the China-Pakistan Economic Corridor (CPEC). Indonesian Ambassador to Pakistan Adam M Tugio said a large chunk of Pakistan’s coal demand could easily be met through a consortium of Indonesian exporters, who would trade with local businessmen. The envoy stressed that Indonesia had the potential to increase its coal exports to Pakistan to around $1 billion.

US Coal News:

* Supply setbacks weighed on US and Canadian coking coal exports in recent month. US exports of coking coal had risen by almost 1mn t or 31.9pc from a year earlier in October ’21 but have fallen since then November shipments from the US to China more than trebled from a year earlier to 1.12mn t, a monthly increase of 8.59pc. But December and January shipments plummeted as Chinese port authorities started to clear pre-ban Australian coal cargoes. The same factors affected US exports to Brazil, where exports fell by 21% and Turkey, with shipments falling by 70%.

* Decreased coal output was the principal reason for the decline in U.S. emissions between 2005

and 2019, with power-sector emissions falling by a third over that period. Conversely, increased coal generation was the chief reason for the increase in American emissions last year. Natural gas prices nearly doubled in 2021, prompting more coal generation. U.S. coal retirements also fell sharply last year. America was on track to retire less than 5 gigawatts of coal capacity in 2021.

* The year 2021 managed to be the second-best year for U.S. intermodal volumes, with year-over-year gains in the first half of 2021 offsetting volume losses in the second half of the year. Coal carloads were up substantially because of sharply higher natural gas prices, while carloads of motor vehicles suffered as microchip shortages forced automakers to cut output. U.S. carload traffic was 6.6% higher in 2021, totalling 12 million carloads, amid gains for coal, metals and chemicals, among other commodities.

* Coal exports from the Hampton Roads terminals in United States’ Virginia fell 16% on the month to 2.38 million in December ‘21, a nine-month low, Virginia Maritime Association data released this month showed. December's coal exports were the lowest since 2.35 million st in March and 16% lower than 2.83 million st in November, when exports had hit a 20-month high.

Pet Coke News:

* Indian delivered petcoke prices fell this month due to low demand and reduced price of Indonesia, Australia, and South African thermal coal. Construction activities in and around Delhi were halted in November and December due to adverse air quality and environmental concerns, causing cement demand to dwindle that which depends heavily on petcoke. Traders said that weak petcoke import demand from China also led traders to lower offer prices for India.

* As the petcoke sellers targeted Asia as their preferred destination due to low prices, the price of petcoke delivered into the Mediterranean region has plummeted over the month, even as the product availability rose compared to earlier this month. “Despite the longer transit journey, petcoke is still cheaper to sell there than it is in Europe and the Mediterranean region. Meanwhile, US Gulf Coast petcoke saw high levels of spot tonnage supply compared with grains and petcoke demand. * US petcoke market has remained highly active this month with a few trade deals being reported especially from the West Coast markets.US Gulf coast market also reported significant activities in the petcoke market as the high-sulfur petcoke are in high demand. Meanwhile, Indian petcoke buyers largely rely on domestic petcoke due to rise in seaborne prices.

Shipping Update:

* The dry bulk market had one of its best years in 2021 and the success story could repeat itself in 2022 as well. In its latest monthly report, shipbroker Allied said that the dry bulk sector, undoubtedly, began the new year with a strong start. It has been at a 12-year high levels in average returns for all dry segments, with Panamax, Supramax and Handysize finishing the year well above their respective levels of 2009.

* Demand for second hand vessels, in terms of enquiries, seems to be on a high at the start of 2022, even if this isn’t currently translated to more S&P deals concluded. In its latest monthly report, shipbroker Intermodal noted that “while it is logical that most of the S&P reports of the first weeks of the year are linked to very limited activity as reflected in the weekly tables with the concluded deals in the dry market – a phenomenon common in the first months of the year characterised by low seasonality.

* The Baltic Exchange’s dry bulk sea freight index fell for the eleventh straight session, en route to its second consecutive weekly decline, tracking weaker rates across all vessel segments. The overall index, which factors in rates for capesize, panamax and supramax vessels, fell 59 points, or 4%, to 1,415, its lowest since mid-February 2021. The index has lost nearly 19.8% this month. The capesize index dropped 140 points, or 13.6%, to 891, it’s lowest since June 2020. The index is down 40.4% this month.

* Data from China this past month, seems to support the positive narrative, regarding a potential swift rebound of the dry bulk market moving forward. In its latest monthly report, shipbroker Allied Ship broking said that it has been a slow start to the year for the dry bulk market so far, albeit it is just halfway through the first month. The trend seems to be a direct continuation of what was witnessed during the final months of 2021, while it seems that this trend is in direct correlation with the Chinese economy during these months.