Monthly Summary Of Imported Coal &Petcoke

MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE Coal Price Index

COAL (kcal/kg) Weekly Price - FOB Weekly Price - FOB Weekly Change (USD)

South Africa 6000 NAR

South Africa 5500 NAR Australia 5500 NAR Indonesia 5000 GAR Indonesia 4200 GAR USA 6000 NAR USD 54.76

USD 38.49 USD 38.09 USD 36.69 USD 24.37 USD 49.70 INR 4104

INR 2884 INR 2854 INR 2749 INR 1826 INR 3725 -2.60

-1.90 -2.36 -1.13 -1.06 -0.22

Indicative Pet Coke Price

PET COKE Sulphur Price

India-RIL(Ex-Ref.) Saudi Arabia (CIF) USA (CIF)

-5% INR 6750 + 8.5% INR 5606 ($75) - 6.5% INR 5785 ($77)

Weekly Change (INR) 1053.00 9.80 10.20 Exchange Rate Change (Weekly)

INR 74.94 -0.92

Indicative Coking Coal Price Premium Low Vol HCC 64 MID Vol

Current Week

Weekly Change

(USD) 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

112.73 124.38 90.57 101.83 61.16 69.66 67.41 254.60 270.60

1.72 3.81 -0.18 1.26 1.50 0.06 0.31 -2.28 -1.52

South African Coal News:

* South African coal suppliers are repositioning themselves to focus on domestic supply in the wake of the declining demand for seaborne thermal coal, owing to shifting global energy needs, which has been compounded by the Covid-19 outbreak. Following record prices in 2019, where coal traded at almost $100/t, the price of South African high calorific value coal dropped to a 14-year low in April this year because of the pandemic. Experts say some smaller miners have responded by reducing exports and increasing supplies to the local market.

Australian Coal News:

* Australian thermal coal production cuts ahead. Higher costs and lower thermal coal prices are likely to see Australian thermal coal mining firms report a loss for January-June, with some expected to cut production guidance to try to conserve weakened balance sheets. Most Australian thermal coal mining firms saw profits slide in July-December last year with some, including BHP's New South Wales Energy Coal (NSWEC) division, slipping to a loss. Profitability has decreased further since January, with more firms expected to report loss-making operations.

* Australia will need billions of dollars of new transmission lines tied to wind and solar farms and back-up power sources to keep the lights on as coalfired plants shut over the next 20 years, the nation's energy market operator said.

Indonesian Coal News:

* Seaborne demand of Indonesian thermal coal remained lukewarm. During the rainy season the thermal coal producers are baffled with high production cost and low export activity. * The government is looking to mix coal-based dimethyl ether (DME) and liquefied petroleum gas (LPG) as cooking gas in an effort to reduce Indonesia’s dependence on imported LPG. The country has long sought to replace the LPG with DME as a cooking fuel, but new official studies have revealed a key limitation with the plan.

US Coal News:

* The US Government has announced investment totalling $118 million (£93m) to develop technologies to generate carbon-neutral electricity and hydrogen using coal. It will support Coal FIRST (Flexible, Innovative, Resilient, Small, and Transformative) power plants that will convert coal, biomass and waste plastics to generate clean and affordable electricity and hydrogen. These plants will be capable of flexible operations to meet the needs of the grid, use innovative components that improve efficiency and reduce emission and will be small compared to the current conventional utility-scale coal-fired plants. * US coal rail rates came under pressure from low coking coal prices in the second quarter and weaker coal demand in regional and export markets, according to rail operators and suppliers. According to industry sources, export coal transportation pricing has fallen compared with early in the first quarter and 2019 for hauling met coal from Appalachian mines to export ports on the US East Coast.

Russian Coal News:

* Russia, the world’s third-largest coal exporter, posted a notable 6.3% on-year decline in total coal exports over this year’s January-June period to 88 million tonnes, according to recent data from the Russian Federation’s Ministry of Energy (MoE). Analysts ascribed the lower coal exports to the spread of COVID-19 in H1 that affected global coal demand.

Poland Coal News:

* Poland's biggest coal producer, state-run PGG, is likely to announce within days deep cuts in coal output and the closure of a number mines as part of a restructuring plan that is expected to prompt protests by miners, industry sources said. Poland generates almost 80 percent of electricity from coal and is the only member of the European Union that has not pledged to become carbon neutral by 2050.

Pet Coke News:

* Petroleum Coke trading activities in India were bleak in monsoon season as the cement production has reduced. Spot market in the US has also remained weak in the 2nd week of July .

Shipping Update:

* State-owned port operator PT Pelabuhan Indonesia (Pelindo) III has recorded a decline in ship traffic in this year’s first half as the COVID-19 pandemic disrupts global trade and decimates the sea freight and logistics industry. Pelindo III president director Saefudin Noer said that the company’s ports had seen an 8 percent year-on-year (yoy) decline in overall ship traffic and 10 percent annual slump in freight ship traffic in the first half of 2020. * Storms along the New South Wales (NSW) coast in east Australia have disrupted coal shipments from the port of Newcastle and Port Kembla at Wollongong, leading to longer vessel queues. Heavy rain, strong winds and powerful surf conditions has forced vessels waiting to access Newcastle and Port Kembla to leave their anchorage for the second time in two weeks. Access to the port of Newcastle has been restricted since 24 July, with storms expected to continue tomorrow before returning to milder conditions on 29 July. The closure follows similar restrictions over 13-18 July because of bad weather.