Monthly Summary Of Imported Coal & Petcoke

Indicative Imported Coal Price

COAL (kcal/kg) Weekly Price - FOB Weekly Price - FOB Weekly Price (USD) South Africa 6000 NAR USD 328.40 INR 25625 4.40 South Africa 5500 NAR USD 261.23 INR 20384 -0.82

Australia 5500 NAR USD 190.76 INR 14885 -16.66

Indonesia 5000 GAR USD 136.65 INR 10663 -8.17

Indonesia 4200 GAR USD 85.80 INR 6695 -5.06

Indicative Pet Coke Price

PET COKE Sulphur Price Weekly Change ($) Exchange Rate Change (Weekly) India-RIL(Ex-Ref.) -5% INR 22007 Saudi Arabia (CIF) + 8.5% INR 17650 ($226.00) (INR) -250 -22 INR 78.03 0.53

USA (CIF) - 6.5% INR 18899 ($242.00) -14

Indicative Coking Coal Price

Current Week

Weekly Change (USD)

Premium Low Vol Low Vol HCC Semi SoftLow Vol PCI Mid Tier PCI MET COKE 62% CSR FOB Aus CFR China FOB Aus CFR China FOB Aus FOB Aus FOB Aus CFR India FOB N China 373.60 417.10 338.50 376.30 300.65 358.40 356.40 577.00 537.20

-127.87 -41.78 -126.47 -41.58 -126.98 -125.35 -125.35 -58.38 -41.68

FOREWORDS:

With tepid buying interest from China, Asian thermal coal market has remained steady amid sporadic Chinese purchases and volatile freight rates. Though low CV Indonesian thermal coal (3,400-4,000kcal/ kg GAR) market has remained upbeat this month. Mid and High-CV Indonesian coal is witnessing lukewarm demand so far while Australian coal price also fell as major Asian buyers from India and China are focusing more on cheaper alternatives available from Russia. Demand from other Asian buyers such as Vietnam and Thailand is also limited this month as they are able to meet demand using indigenous coal. Meanwhile in Europe, voting by EU parliament is set to accelerate the rise of carbon prices, which would enable the market to focus on fuel switching. Geopolitical conflicts in Europe and tight supply has caused Coal export receipts for Colombia, one of the world’s top coal-exporting countries, climbed to a 30year record in 2022, as per data available till April.

Indonesian Coal News:

*Seaborne spot demand for Indonesian thermal increased this month as Chinese interest surfaced with easing lockdown restrictions. Low CV thermal coal demand from Indonesia was on the rise. However, due to supply of Russian coal to India and China, demand of high-CV Indonesian coal dampened. The mid-CV grade market is very quiet because the Chinese domestic coal is cheaper in comparison.

*Indonesia’s Ministry of Energy and Mineral

Resources has said growing power consumption in India amid surging summer temperatures is one of the factors impacting Indonesian coal prices, which rose by 17 per cent on a month-on-month basis in June. Demand for low and mid-CV Indonesian coal has been high, especially after the Indian government urged power plants to import 10% of their requirement to meet the high-demand.

Australian Coal News:

*Newcastle 5,500 kcal/kg NAR coal with 23% ash price was assessed at $178/mt FOB June 14, down 11% since May 31, and down sharply from almost $300/mt in the first half of March. Asian buyers that have stayed away from procuring high-CV Australian coal as they are continuing to purchase more coal from Russia and Indonesia due to offered discounts.

South African Coal News:

*South Africa is emerging as the “big winner” in the EU’s exit from Russian coal, with the exporter proving a favourable option over competing suppliers. Australia coal had to be transported longer distances and would therefore require higher freight costs, while Indonesia generally exported low-grade material and Colombian supply was insufficient to plug the gap left by the Russia ban. Exports from South Africa’s main export hub at Richards Bay to Europe surged four-fold year on year to 3.6m tonnes in the first five months of 2022, according to Vessels Value ship tracking data.

*EU countries have been importing coal in record numbers from South Africa in the face of imposed restrictions on Russian coal imports. EU countries— including the Netherlands, Italy, and Denmark— started ramping up coal imports from South Africa. The bloc has accounted for nearly 15% of RBCT’s 24million tons of coal exports so far this year, compared with 4% in all of 2021.

US Coal News:

*As the Russia-Ukraine war fuels energy market volatility, the US Energy Information Administration lowered its 2022 US coal export projection to 81million tn, down by 5% from the previous projection and 4.8% below 2021. Coal exports are expected to climb 1.8% from 2022 to 82.6 million tn in 2023.

*Coal based generation is projected to fall to 21.2% in 2022, before declining to 19.8% in 2023. The coal fleet has been facing constraints in raising its share of generation despite high natural gas prices including limited rail capacity for fuel delivery, low coal stocks at power plants, reduced coal mining capacity, and rising generation from renewable sources, EIA said.

Pet Coke News:

*New EU sanctions on Russia have lifted the prices of oil and coal but China lockdowns dampen demand causing sharp drop in petcoke prices. China’s lockdowns and low domestic regulated coal prices have lowered petcoke imports, while real term prices also kept buyers away, leading to the sharp price corrections seen in April. However, FOB and destinations discounts are currently rising, making petcoke attractive when compared to coal.

*Demand for imported pet coke into the Mediterranean region remained Low this week chiefly due to its higher price as consumers in the region looked for cheaper thermal coal. Heavily-discounted Russian thermal coal available in the market made some buyers interested in using it as an alternative to pet coke. Meanwhile, Indian demand for seaborne pet coke was also weak as cement companies stayed on the sidelines expecting weak demand during the monsoon period.

Shipping Update:

*According to the Shipbrokers Association, in the JanApr period of 2022, global seaborne coal loadings declined by -4.0% y-o-y to 351.6 million tonnes, from 366.3 million tonnes in the same period of last year. Most of the decline was in the month of January, which was particularly disappointing at just76.7 million tonnes, down by -17.6% y-o-y from January 2021, and was due to export restrictions from Indonesia. In more recent months, shipments from Indonesia recovered strongly, whilst Russian exports have been partially curtailed by sanctions. *China’s coastal bulk freight market saw a decline in overall demand in May, data from the Shanghai Shipping Exchange (SSE) showed. On a monthly basis, the composite index for coastal bulk freight, which measures transportation costs in the coastal shipping market, dropped 2 percent to 1,099.62. The sub-index for coal saw the most notable decrease at 2.9 percent, followed by that for metal ore. The subindices for grain and refined oil both edged up 0.4 percent, while that for crude oil remained flat from one month earlier.