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 115.35 INR 9127 7.00 South Africa 5500 NAR USD 85.91 INR 7335 12.43

Australia 5500 NAR USD 87.13 INR 6500 12.97

Indonesia 5000 GAR USD 92.88 INR 6928 9.70

Indonesia 4200 GAR USD 66.99 INR 4997 6.43

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change ($) Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) -5% INR 12783 Saudi Arabia (CIF) + 8.5% INR 10622 ($142) INR 1294.00 11.15 INR 74.59 0.89

USA (CIF) - 6.5% INR 12263 ($164) 18.90

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 207.55 311.50 179.50 272.23 143.28 149.80 148.75 395.50 442.80

36.02 21.94 4.19 47.41 17.09 17.86 17.56 16.50 5.43

South african Coal News:

* South Africa-origin thermal coal prices, primarily used in sponge iron manufacturing in the steel sector, increased by 9%-11% mom at end-June 2021 on continued supply disruptions in the transportation services to the Richards Bay Coal Terminal in South Africa amid stricter lockdowns post rising infections, limited cargo availability, limited stocks on Indian ports and a sustained high Chinese demand. * One of the main coal export rail lines to South Africa's Richards Bay Coal Terminal (RBCT) has partially reopened following a 31car derailment on 3 July, but the other main line remains closed. The derailment comes at a complicated time for South African coal shippers as South African fob coal prices were already trading at around decade-highs before the derailment with the price of NAR 6000 Kcal/ kg raising to over $115 in July. *The departure of several major coal mining giants has resulted in a shift in the historic ownership trends of South Africa's coal mining operators, and is presenting opportunities for smaller operators to break into the market as coal is set to remain an integral part of South Africa's energy landscape for some time to come. *South African coal companies continue to experience significant rail availability issues and delays. South African coal prices are playing catchup as European power and carbon prices fell a little after significant gains. Eskom is being encouraged to review its timeline of coal plant shutdowns suggesting that the Presidential

Climate Commission and NEDLAC should facilitate stakeholder engagement regarding a Just Transition with the coal value chain.

australian Coal News:

* Record shipments from Australia's port of Gladstone in Queensland to Japan bolstered coal exports from the port to a 17-month high in June even as Beijing continued to disrupt imports of Australian coal. Gladstone shipped a record 2.51mn t of coal to the highgrade market of Japan in June. This, together with strong exports to South Korea and India, underpinned a 23pc increase in total shipments compared to May’21. *Australia’s Whitehaven Coal narrowly beat its annual coal production forecast this week, helped by a record output at its Maules Creek mine, and said it expects strong demand and prices in the coming months. The company was forced to cut its full-year output guidance twice in the last four months due to downtime at its Narrabri mine in New South Wales for additional long-wall equipment repairs. *Australian mining firm Stanmore Coal expects to ramp coal production back up to a rate of at least 2.4mn t/yr during July-December, after cutting sales in April-June to just 293,000t in response to weak coal prices. Stanmore plans to start building its A$82mn Isaac Downs semisoft coking and thermal coal extension to its Isaac Plains mine next month, giving it access to more economic coal and extending the life of the operation by at least 10 years at a maximum operating rate of 2.5mn t/yr. *Australia’s banks have defended their decision to exit the thermal coal sector and pushed back against suggestions from government lawmakers that they be forced to extend financing to fossil fuels. Senior executives from Australia’s big four banks and the head of the country’s banking association told a parliamentary hearing on July 27 that current sky-high coal prices are masking “significant” medium-term uncertainty and risks posed by the sector.

Indonesian Coal News:

* Global decarbonisation will likely weaken Indonesia's coal exports in the medium to long term, but this could be mitigated by a pickup in exports of base metals. Although Indonesia's coal export destinations have announced plans to shift away from coal, many have ongoing coal power projects that will only begin operating in the years ahead, which could support demand for Indonesian coal in the short term. * Indonesian coal prices have been supported by strong demand from China, which is being boosted in part by the country’s ban on Australian coal imports. Coal demand in Asia-Pacific is expected to increase as more countries start to recover from the effects of the pandemic. Indonesian producers are looking to maximise revenue from their coal sales this year to offset the losses incurred in 2020 when Covid-19 first hit the region. *Rising demand in both domestic and international markets has caused the Indonesian thermal coal price to soar to a record high. Demand from Indonesian power producers have gone up significantly in recent weeks due to low inventory at plant-ends while increased interest from Indian buyers coupled with strong Chinese trading activity has helped high and mid-CV Kalimantan coal prices to boost further.

US Coal News:

* The surge in the post-pandemic U.S. economy is driving an unexpected boom in coal which is also the latest sign that demand for the dry fossil fuel remains resilient. Key exporters of coal

including Australia and Colombia are currently facing supply problems which have helped lift global prices to a 10-year high and added to international demand for U.S. coal exports. * American coal production this year will swell 15% to meet stronger demand for electricity at home and abroad, according to the newly elected Biden Government in the USA. The growth would be the most since at least 1990 and nearly double the 8% increase projected in May, when the economic rebound was still in earlier stages of recovery. The growing appetite for coal overseas will help boost U.S. exports of the fuel by 21% this year, and another 19% in 2022, the Energy Department has predicted. *As per a recent report published by EIA, U.S. coal production fell in 2020 to its lowest level since 1965 due to low global demand in the wake of the pandemic. The federal agency said that U.S. coal production totaled 535 million short tons (MMst) in 2020, a 24% decrease from the 706 MMst mined in 2019. U.S. coal-fired generation fell 20% year-on-year and exports were 26% lower in 2020 than in 2019. *Rising gas prices are encouraging U.S. electricity generators to raise output from coal-fired units slightly this summer, providing a temporary reprieve for the beleaguered coal mining sector. Mine output averaged 11.7 million short tons per week over the five weeks ending on July 17, up from 9.3 million tons at the same point a year ago, though still down from 13.1 million tons in 2019.

Pet Coke News:

* High prices of US-origin petcoke coupled with extensive freight rates has caused the Indian petcoke buyers to shy away from bidding despite having strong demand in the rejuvenated cement market. Most of the cement manufacturers from India are forced to rely on domestic supply of high- CV seaborne coal as alternatives. However, steep rise in thermal coal prices in recent weeks have left them with fewer options. * Following the recent trend, US petcoke prices have remained upbeat this week as well supported by tight supply on the Gulf Coast amid consistent demand. While Indian buyers have so far refrained from bidding owing to high freight rates, Chinese and Latin American demand for US Gulf-Coast petcoke has been steady.

Shipping Update:

* India has sent its first export consignment of coal to Bangladesh, after Coal India’s (CIL) policy amendment last month allowing traders, lifting coal from e-auction, to export. The first coal-laden rake left for Bangladesh on July 2 and the coal send was of below 2,200 gross calorific value (GCV), meant for the 1,320 MW Rampal thermal power station, an NTPC and Bangladesh Power Development Board (BPDB) JV, at Khulna in Bangladesh. *Coal shipments to India rose by more than 20 per cent in May compared to the same period previous year but witnessed a slump since then. The import volumes of dry-fuel are expected to remain subdued in the ongoing monsoon season on account of firm prices in the seaborne market coupled with higher availability of domestic coal and higher freight rates.

*A recent study by Ricardo and Environment Defense finds that South Africa holds an untapped opportunity to supply the global shipping industry with zero carbon fuels. The production of green hydrogen-derived fuels can help to meet de-carbonization targets and act as a catalyst for the country’s economy – opening new export markets, supporting an equitable transition, and creating the jobs of the future.