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 8501 10.61 South Africa 5500 NAR USD 85.91 INR 6332 13.04

Australia 5500 NAR USD 74.17 INR 5466 15.88

Indonesia 5000 GAR USD 83.18 INR 6130 5.50

Indonesia 4200 GAR USD 60.57 INR 4464 5.42

Indicative Pet Coke Price

PET COKE Sulphur Price

Monthly Change ($) India-RIL(Ex-Ref.) -5% INR 11489 INR 132.00 Saudi Arabia (CIF) + 8.5% INR 9655 ($131) 5.50

USA (CIF) - 6.5% INR 10760 ($146) 12.00 Exchange Rate Change (Monthly)

INR 73.70 0.70

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 171.53 289.56 175.31 224.81 126.19 131.94 131.19 379.00 437.38

45.35 27.94 59.19 -10.94 24.72 24.09 24.34 2.88 18.63

South african Coal News:

* Seriti Resources has announced in a statement that all conditions of its acquisition of South32 SA Coal Holdings Proprietary Limited (SAEC) have been fulfilled and the sale is expected to be completed on 1 June 2021. South Africa’s main power utility Eskom and Seriti have also agreed to a number of proposals to improve the long-term, sustainable and cost-effective supply of coal to Eskom. * South Africa’s second largest coal export destination Pakistan is planning to bring coal imports to an end. The decision may cause South Africa’s coal imports to drop drastically given that its top export destination India is also working significantly in replacing the import quantity with domestic coal. *The London-listed energy company Kibo Energy PLC, which holds shares in three coal power plant projects in Mozambique, Botswana and Tanzania in Africa has stated that its primary focus going forward will be on renewable energy and that it intends to develop and implement a disposal strategy for its coal assets. * The profitability of South Africa’s mining sector will be negatively affected when the European Union (EU) imposes carbon taxes on imports, which could entail levies on goods imported

from countries with heavy carbon reliance from 2023. This is owing to South Africa’s reliance on coal-fired electricity. South African president, Cyril Ramaphosa has recently said that a more nuanced approach to carbon taxes ought to be adopted for developing economies.

australian Coal News:

* Despite the worldwide trend of moving towards renewable energy and banning coal, Australia is set to make huge expansion in the dry fuel segment. The country has 31 mtpa under construction and 435 mtpa in planning at present. * The third and final report in the Minerals Council of Australia(MCA) outlines the qualities of Australian thermal coal including higher rank and higher delivered specific energy that enables less coal to be burnt per kilowatt hour of power station output and lower levels of carbon dioxide (CO2) emissions, Superior combustion properties and boiler efficiency because of lower moisture, moderate ash, higher ash fusion temperature, and satisfactory fuel ratio. * The Australian government needs to help fund coal-fired power producers because finance and insurance for coal plants is becoming unaffordable or too hard to secure, experts say. The issue is coming to a head as investors and activists pressure banks and insurers to stop backing coal-fired plants while the country still needs at least some coal plants for steady power supply. *Overcoming the woes of Corona virus pandemic and the bitter trade war with China that imposed indefinite ban on Australian coal, the country has emerged as world’s second largest exporter of thermal coal, behind Indonesia, having exported some 213-million tonnes in 2019/20 worth around A$20-billion. * Indonesia, the world's largest thermal coal exporter, has decided to stop approving new coal-fired power plants with an aim of cutting emissions and expanding renewable energy sources. Jakarta will only allow the completion of plants that are under construction and those that have achieved financial closure, Indonesia's energy ministry (ESDM) said. * Indonesian coal exports are expected to fall 10% from current levels by 2025, analysts say. Shipments from the world’s biggest thermal coal exporter are expected to fall by 40 million tonnes or around 10% by 2025 as Chinese imports are seen to fall 45%. The country may divert its exports to other growing regions such as India and other Southeast Asian countries, but will face stiff competition from Russia and Australia. * Indonesian officials have cast doubts on a government plan that would somehow see Indonesia phase out all its coal-fired power plants while at the same time build more than a hundred new ones as the plan remains inconclusive regarding what to do with the 117 under-construction or planned coal plants, with a combined capacity of 21 gigawatts, that will come online over the next few years. * Prices of essential commodities such as coal and copper have roughly doubled from a year earlier in Indonesia, helping the resource-rich country book a $2.37 billion trade surplus, the statistics bureau said, which was the highest in six months. * Japanese trading house Mitsui & Co has agreed to sell its stake in Indonesia’s PT Paiton Energy, which operates coal power plants, to RH International (Singapore), a unit of Thai energy firm Ratch group PCL. The move is in line with Mitsui’s plan to sell its remaining stakes in coalfired power stations by the end of the decade and a growing global trend to move away from coal to cut carbon dioxide emissions..

* The U.S. coal sector has limited access to capital, in large part due to concerns about the industry's environmental impacts and its longterm viability, but some companies have found ways to tap into alternative financing. Increased investor focus on environmental, social, and governance issues has been increasing the pressure on the U.S. coal sector. * According to the U.S. Energy Information Administration (EIA), increase in economic activity and easing of the COVID-19 pandemic have contributed to rising energy use in the United States.EIA expects U.S. coal production to total 600 million short tons (MMst) in 2021, which is 61 MMst (11%) more than in 2020. The increase is driven primarily by rising electricity demand. In 2022, EIA expects coal production to grow by an additional 5 MMst (1%). *US and Canadian coking coal exports to China and Europe rose in the first quarter of 2021. US first-quarter coking coal exports fell by 11.3pc to 9.39mn tones while US exports to China rose by more than fivefold to 2.11mn tones as per latest data. .

Pet Coke News:

*Tight tonnage supply and shortage of ships in the Mediterranean region in recent weeks has caused the freight rates soar high in recent weeks resulting in inflated price of imported petcoke. The price may go further up due to the supply of petcoke from Spain and Russia continues to be absent in the coming weeks. *Export of US fuel-grade petcoke has been the highest since 12 months in April’21 at nearly 2.7 million mt. the figure is up by 3% from March. Calcined petcoke export has also reached a 17-month high this year overcoming the downward trends in 2020. China has been the largest importer so far. * The price of US Gulf coast petcoke has surged upwards in recent week despite low-key interest from the Indian buyers in recent weeks, report shows. The high sulfur petcoke from the US market is in high demand in the market primarily because of a lack of spot supply due to lower refinery utilization but the extensive freight rates are keeping many buyers at bay.

Shipping Update:

*Cargo handled at India’s dozen State-owned major ports soared 31.23% during April-May period to 121.976 million tonnes (mt) from 92.951 mt a year ago. All the major port trusts with the exception of New Mangalore Port Trust handled much higher volumes during the first two months of the fiscal year that began in April from a year earlier. * The Baltic Exchange’s main sea freight index soared to its highest in 11 years in June’21 as rates across all vessel segments were lifted by strong demand for dry bulk commodities. The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels, added 91 points, or 2.9%, to 3,267, its highest level since June 2010.

* The Chennai Port is facing a 25 per cent shortage of containers due to supply and demand gap sparking concern among exporters who now have to pay double rates to send consignments as the pandemic has triggered a worldwide shipping crisis. *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.