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 316.00 INR 24107 109.29 South Africa 5500 NAR USD 282.44 INR 21547 106.72

Australia 5500 NAR USD 236.30 INR 18027 84.31

Indonesia 5000 GAR USD 158.79 INR 12114 44.44

Indonesia 4200 GAR USD 110.69 INR 8444 34.55

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change ($) Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) Saudi Arabia (CIF) -5% + 8.5% INR 18056 INR 18645 ($244.40) INR 3533.60 66.40 INR 76.29 1.33

USA (CIF) - 6.5% INR 20247 ($265.40) 71.40

Indicative Coking Coal Price

Current Month

Monthly Change (USD) Premium Low Vol HCC 64 MID Vol 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 584.60 436.70 552.10 405.20 459.90 545.50 543.50 684.20 638.90

139.92 41.30 154.52 48.83 155.28 226.53 226.47 85.95 129.65

South African Coal News:

* In a groundbreaking ruling, a court has ordered the South African government to reduce air pollution in a coal-mining belt ranked by Greenpeace as the world's most polluting cluster. Mpumalanga, which borders Mozambique, is the hub of South Africa's coal industry and boasts 12 coal-fired plants. Local environmental lobby group GroundWork and Vukani won the case with a Pretoria high court last week declaring air quality in the area "in breach of residents'... constitutional right to an environment that is not harmful to their health and well-being.

* Deputy Minister for mineral resources and energy Nobuhle Nkabane said South Africa is aiming to reduce the country’s dependence on coal while pointing out that there is an “umbilical cord” between South Africa’s coal mining and energy. Currently the country’s reliance on coal as a primary source of energy is at 75%. He said SA has committed to progressively contribute its fair share as part of its approved Nationally Determined Contributions, and aims to reduce coal consumption in the power generation sector to below 60% by the year 2030.

* South African miners are exploring ways to supply coal and metals consumers in Europe scrambling for alternative sources to Russian supply, but logistics and cost constraints make it difficult to rapidly boost output, companies said. Customers are approaching suppliers they have no existing relationships with, desperate to secure the commodities, major producers said. Miners typically utilize long-term contracts, making surplus supply scarce.

* South Africa is an advocate of a fair energy transition that considers developmental needs of poor countries. While coal currently accounts for 90% of South Africa’s energy sources, it has been ramping up roll out of wind and solar energy farms to reduce its reliance on coal-fired power stations for generating electricity. Last year, South Africa announced that it had secured $8.5 billion in financing from the EU,

Britain, Germany, France and United States over the next five years to help it shift from coal to renewable energy. The country presently plans on selling off its stranded assets in energy-related sectors like coal mining, an outcome that could result in massive job losses.

Australian Coal News:

* Australia has promised to send 70,000 tonnes of coal to Ukraine but there’s currently no ship contracted to send the coal from Newcastle to the war zone. There are only 13 Australian-flagged vessels – the only ships the government can legally commandeer – left in operation. Prime Minister Scott Morrison announced on Sunday the thermal coal shipment, worth about $28 million, would be sent as soon as possible after a request from the Ukrainian leadership. The government has agreed with Whitehaven Coal that taxpayers will cover the costs of the coal and shipping. The mining company and the government are reluctant to reveal detailed plans about the transportation of the coal for security reasons.

* Producers of power-station coal in Australia, the second-biggest exporter, have only limited capacity to send cargoes to Europe to help replace Russian fuel. New Hope, which operates the 10-million tons a year Bengalla mine on Australia’s east coast, has held talks with prospective customers in Europe and with local government officials, who’ve urged domestic suppliers to assist.

* Australia's federal resources minister Keith Pitt is pressuring the premier of Queensland State Anastacia Palazczuk to expedite coal mine developments to free up shipments to Europe and other markets opposed to Russia's invasion of Ukraine. Canberra has put a number of European buyers in touch with key Australian coal mining firms, after Polish Prime Minister Mateusz Morawiecki called on his Australian counterpart Scott Morrison to increase shipments of Australian coal to Eastern Europe. Mining firms were already operating at capacity to capitalise on recordhigh prices over the past six months. Australian coal haulage firm Aurizon has warned that it is difficult for mining firms to increase output further no matter what price signals they are receiving.

* The Australian government is helping coal importing nations find alternatives to Russia for supplies by connecting them with local producers. Australia's top independent producer, Whitehaven Coal, and New Hope Group (NHC.AX) said they have been approached to supply countries, including Poland, which have traditionally relied on Russian coal. Coal supply is extremely tight at the moment, partly due to flooding and labor issues at mines in Australia, which means local producers would be hard-pressed to fill any supply gap in Europe in the near term.

Indonesian Coal News:

* Indonesia may delay rolling out its carbon tax on coal power plant emissions, officials said on Mar ch 25 as authorities have yet to finalise details a week before its Apr 1 start date. Under a sweeping law passed in October, Indonesia introduced a new levy for coal power plant operators of 30,000 rupiah (US$2.09) per tonne of carbon dioxide equivalent (CO2e) for emissions above a set limit. Indonesia, the world's fourth-most populous country where coal powers 60 per cent of electricity use, has trailed the tax for 32 operators. Emissions caps were set at 0.918 tonne CO2e per megawatt hour for power plants with a capacity above 400 MW.

*Coal miners in Indonesia, the top shipper, are preparing for potential new curbs on exports, a move that would add pressure to prices already at record highs. New restrictions on overseas sales are possible in either April or August -- when mine output is typically lower -- to make sure local power plants have sufficient supply. Indonesia requires coal producers to supply at least 25% of output to meet local needs and sets a ceiling price for coal sold to local power plants at $70 per ton, a policy known as the domestic market obligation rule. The higher international coal prices rise, the more likely local miners are to sell the remainder of their output overseas, which will increase the chance of another export disruption, experts say.

* Most emerging Asian currencies and stock markets were set for weekly losses this week as the worsening Russia-Ukraine conflict dampened appetite for riskier assets, while Indonesian shares rallied on higher energy prices. Soaring prices of energy, including coal and natural gas have been one of the many fallouts of the Ukraine crisis. Higher coal prices have benefited Indonesia - a major coal exporter in the region. Indonesian stocks rose 0.9%, with coal producers Adaro Energy and Bayan Resources jumping 15% and 7%, respectively, by 0732 GMT. The rupiah also gained marginally.

* Global energy prices rose sharply this month amid the Russia-Ukraine conflict, a trend that hit US thermal coal export FOB Baltimore and FOB NOLA coal prices hit record highs. FOB Baltimore 6,900 NAR was assessed at $181.40/mt, up $29.25 from the previous session and the highest since the assessment began April 5, 2019. FOB NOLA 6,000 NAR was assessed at $168.50/mt, up $30.35 from the previous session, marking the highest price since the assessment launched April 6, 2018.

* US coal producers said they only have limited ability to boost exports and offset lost Russian volumes due to chronic industry underinvestment amid the clean energy transition. Paul Vining, chairman of privatelyheld Westmoreland Mining LLC, said US coal exports this year should be slightly higher than last year’s 72 million tonnes, but be constrained from further growth due to staffing constraints and limited rail capacity.

* Coal-burning facilities in North Dakota have cut their mercury emissions from more than 2,300 pounds in 2010 to 847 pounds in 2020, according to data supplied by the state Department of Environmental Quality. That mirrors a national trend, as some coal plants around the country have been replaced by natural gas and the rest have had to adapt to tighter environmental policies from the federal government. While coal-fired power is not the country's biggest source of Mercury pollution anymore, North Dakota plants dominate recent catalogs of the biggest mercury emitters in that sector.

Pet Coke News:

* Price of petcoke in the US Spot market has remained unchanged this month. The Medium-sulfur based US Gulf Coast petcoke market has remained quiet while no new bids were heard in the West Coast of the United States as well. Top destination for US petcoke in recent months has been Japan, closely followed by China in the second spot.

* Price of Mediterranean-delivered petcoke soared to historic highs this month although rates maintained a firm $200 discount compared to thermal coal. Additionally, freight rates moved higher for transAtlantic petcoke runs. Meanwhile US petroleum coke prices have also gone up this month, with US Gulf Coast activity leading the way. However, West Coast assessments finished flat compared to the previous month.

* Volatile market conditions and erratic demand has caused the US petcoke prices to go higher in both the Gulf Coast and West Coast regions. US Gulf Coast high and mid-sulfur petcoke prices jumped more than 15% this month. Activities along the West Coast were relatively lighter. Overall petcoke export by the US has dropped by nearly 20% this month, with Brazil being the top destination so far followed by Ecuador and Netherlands.

Shipping Update:

* With the Black Sea route choked by the RussiaUkraine conflict, India is weighing a raft of options–including trade through the strategically important Chabahar Port in Iran–to beat shipping snarls and export goods to the Commonwealth of Independent States (CIS). At stake are New Delhi’s annual dispatches of about $4-4.5 billion to these nations. Official and trade sources told that the government is considering two other options as well trade by ship through China’s Qingdao port and on to the CIS members from there by rail, and exports through the Georgia port. *India will take steps to ensure a steady supply of coking coal for domestic steel companies, which are struggling with cargo disruptions and rocketing prices in the wake of Russia’s invasion of Ukraine. India’s overall coking coal imports total 50-55 million tonnes, with overseas purchases rising 4% annually. To reduce its import dependence on Australia, India last year agreed with Russia to import coking coal, which accounts for about 40% of the total cost of steel production. * The sudden surge in container rates and insurance costs following the Russian invasion of Ukraine is expected to drive up freight costs across the world, industry executives and trade associations said. Container rates are up ten-fold in less than a fortnight, while war insurance premiums have risen 5%. The shipping industry, which plays a major role in global trade, was already fighting a shortage of vessels and containers when American and European sanctions on Russia and its businesses drove up crude prices, increasing shipping costs.