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 142.25 INR 10595 -67.50 South Africa 5500 NAR USD 114.51 INR 8528 -55.89

Australia 5500 NAR USD 114.76 INR 8548 -42.12

Indonesia 5000 GAR USD 121.33 INR 9037 -64.73

Indonesia 4200 GAR USD 85.74 INR 6386 -55.74

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change ($) Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) -5% INR 20781 Saudi Arabia (CIF) + 8.5% INR 15920 ($214) INR 4421.00 -6.25 INR 74.48 -0.56

USA (CIF) - 6.5% INR 16479 ($221) -6.75

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 371.94 497.00 310.13 431.25 214.89 255.63 234.69 627.38 580.75

-27.03 -114.35 -24.72 -106.69 -58.62 -19.94 -39.88 11.63 -63.75

South African Coal News:

* Key South African government ministers have reached a broad agreement to sell some of the state power utility Eskom’s coal-fired power plants to help reduce its debt burden. Eskom supplies almost all of South Africa’s electricity, most of it from coal-fired plants. The South African government has said in the past that it’s been approached by investors interested in buying its coal-fired plants, without identifying them. * South Africa’s plan to build new coal-fired power stations during the climate crisis is being challenged in court for breaching the rights of current and future generations. Three civil society organisations have launched a constitutional lawsuit in the North Gauteng high court against the South African government, arguing that its energy policy is incompatible with the national constitution. *South Africa’s plan to build new coal-fired power stations during the climate crisis is being challenged in court for breaching the rights of current and future generations. Three civil society organisations have launched a constitutional lawsuit in the North Gauteng high court against the South African government who intends to add 1,500MW more over the next six years as part of its 2019 integrated resource plan. *Indian industrial major Jindal Steel and Power Ltd (JSPL) will construct a coal mine in Botswana's Mamabula coal fields in 2022 to cater to the export market and supply a planned coal-fired power plant. JSPL's African arm aims to produce 4.5 million tonnes of coal annually from the upcoming mine.

* Australia said it will sell coal for "decades into the future" after spurning a pact to phase out coal in the recently concluded COP26 UN climate summit in Glasgow. Defending Australia's decision, Australian Minister for Resources Keith Pitt said Australia had some of the world's highest quality coal. He said Demand for coal in the global market is expected to rise until 2030. * Australian Prime Minister Scott Morrison said the coal industry will be operating in the country for “decades to come,” in response to British Prime Minister Boris Johnson’s remarks that the agreement reached at the COP26 climate summit in Glasgow, Scotland, sounds “the death knell for coal power.” He said Australia has a balanced plan to achieve net zero emissions by 2050, but his Government is not going to make rural and regional Australians pay for that. * Overcoming the downturn of last year following the Chinese import ban, the Australian coal market has witnessed a steady upswing in 2021 which is further boosted by the release of pre-ban Australian cargoes. Last month, Beijing allowed the discharge of Australian coal cargoes that arrived before the ban helping imports of 777,915t of coal to be released into China, according to customs data. As a result, High-CV Australian coal prices have gone up by nearly A$50 in October compared to the previous month.

Indonesian Coal News:

* Indonesia, the largest exporter for thermal coal, is placing a limit to the price of coal sold to local cement and fertilizer plants to help them weather the impact of surging global prices. The price is set at $90 a ton for coal with a gross heating value of 6,322 kilo calories a kilogram, Ridwan Djamaludin, director general of minerals and coal at the Energy and Mineral Resources Ministry has revealed. The relevant ministerial decree has been issued in this regard. * The Government of Indonesia has issued a regulation to implement the recent amendments made to the Mining Law which seeks to strike a balance between mineral and coal mining business. Principally, this new regulation regarding the Operation of Mineral and Coal Mining Business ("GR 96/2021"), enacts a new licensing scheme for mining business activities and overhauls the divestment obligation for foreign investment companies holding a Mining Business License. * Indonesia’s coal Production through October 2021 rose 9.4% to 512 million tonnes, up from 467.88 million tonnes in the same period last year, a latest report shows. January-October exports by the country rose 36.6% to 367 million tonnes from 268.62 million tonnes last year. The country has set its benchmark coal price at a record high $215.01 per tonne last week on higher demand for winter. * Indonesia's 2022 coal consumption for power generation is likely to reach 119 million tonnes and is likely to rise by 3.1% next year compared to 2021. Coal demand by state utility Perushaan Listrik Negara (PLN) itself is expected at 68.43 million tonnes next year, while 50.76 million tonnes is likely to be used by independent power plants.

US Coal News:

* The US has surpassed Russia as China's biggest met coal importer in 2021, with China importing 7.187 million mt from the US in January-September, 8.7 times higher on the year, customs data showed. Analysts say Chinese demand for US based met coal in 2021 to be 580.02 million mt, up 4% from 2020. * U.S. miners are struggling to ramp up coal production as American utilities burn more, leading to dwindling stockpiles and rising prices. U.S. miners say demand is going to remain strong through next year, and some already have contracts to sell almost all of their expected output for 2022. While Prices will probably come down over the next few months, it won’t return to where they were at the start of the year.

* While the price of coal has skyrocketed as global demand explodes, US mining operations are grappling to keep up with demand. A ton of central Appalachia coal was $89.75 (£63.37) per short ton, according to the US Energy Information Administration, a more than $10.70 jump in three weeks. Overall, coal’s value is up 35% from earlier this year and has hit a 12-year high. * Railroads are benefiting from China’s continued appetite for U.S. coal as America exports coal to China in volumes unseen in much of the past decade. Data from the U.S. Energy Information Administration shows that through the first half of 2021, the U.S. has exported 5.4 million tons of coal to China, compared to slightly more than 531,000 tons for the same period a year ago — a profound 920% increase year-over-year.

Pet Coke News:

* Indian petcoke buyers have remained relatively silent this week in spite of significant demand as the US Gulf coast and Australian origin petcoke prices are expected to climb down further. Also, reduction in Australian and South African coal prices have prompted traders to look for alternatives to petcoke. * Prices of US based petcoke crashed this month owing to low demand from overseas buyers-particularly from China as the buyers there are mostly relying on domestic petcoke for short-term procurement and also waiting to see whether prices fall further in the next six to eight weeks. * Petcoke sales in the US more than doubled this month owing to significant spurt in demand. Major share of US petcoke has been exported to neighboring Mexico, followed by Japan. Large share of US based petcoke from USA’s Lake Charles and Long Beach region was also sent to Greece, India and Panama.

Shipping Update:

* Canada has banned thermal coal exports to and from the U.S., which is expected to lower the northernmost North American environmental impact exponentially. In a late August announcement, the governing Liberal Party pledged to ban all thermal coal exports from the country border between the U.S. may soon be closed to trainloads of American coal that pass through Canadian export terminals on their way to overseas markets. * The deal between Russia and India to supply up to 40 million tonnes of coking coal to India every year may have little or no impact on the demand for dry bulk shipping. Since RussiaIndia is predominantly Panamax routes, the impact of the recent deal on the demand for Panamax vessels will depend on the port that will supply coking coal to India. Russia has been exporting coal through Murmansk, Vanino, Vostochny and Ust-Luga, of which Vanino and Vostochny are almost equidistant from India, as is Australia so there will hardly be any addition in the overall vessel demand. * Shipping companies that transport the world’s coal are in the crosshairs of some financial backers who are cleaning up their businesses in the absence of a truly global drive by nations to renounce the dirtiest fossil fuel. In a sign of investors taking the initiative, six European firms collectively representing over 5% of the estimated annual $16 billion capital financing requirements of the dry bulk industry have said they are either reducing their exposure to vessels that transport coal or are considering doing so. * Greek Prime Minister Kyriakos Mitsotakis said his country is pushing ahead with the green transformation of its economy as it plans to become a global leader in the decarbonisation of the shipping industry. Greece is among a number of important shipping nations to back an International Chamber of Shipping proposal for a $5 billion research and development fund, the IMO Maritime Research Fund.