Monthly Summary Of Imported Coal &Petcoke

MONTHLY SUMMARY OF IMPORTED COAL & PETCOKE Coal Price Index

COAL (kcal/kg)

South Africa 6000 NAR

South Africa 5500 NAR Australia 5500 NAR Indonesia 5000 GAR Indonesia 4200 GAR Monthly Price - FOB

USD 57.03

USD 44.45 USD 39.09 USD 36.61 USD 23.17 Monthly Price- FOB Monthly Change (USD)

INR 4192

INR 3268 INR 2874 INR 2692 INR 1703 1.73

2.63 2.52 -0.07 -0.14

Indicative Pet Coke Price

PET COKE Sulphur Price

India-RIL(Ex-Ref.) Saudi Arabia (CIF) USA (CIF)

-5% INR 7894 + 8.5% INR 6378 ($87) - 6.5% INR 6617 ($90)

Monthly Change INR 626.00 $8.75 $8.00 Exchange Rate Change (Monthly)

INR 73.52 -0.99

Indicative Coking Coal Price

Premium Low Vol HCC 64 MID Vol Semi Soft Low Vol PCI Mid Tier PCI MET COKE 62% CSR

Current Month FOB CFR China FOB Aus CFR China FOB Aus FOB Aus FOB Aus CFR India FOB N China

121.06 131.69 99.32 111.00 64.67 73.70 71.20 272.88 288.50

Monthly Change (USD) 14.12 13.54 13.22 12.12 3.20 7.26 6.76 17.13 16.38

South African Coal News:

* Figures for South Africa’s country’s production recently released by Statistics South Africa paint a grim picture of the local mining industry. Production output for 2Q20 shrank by 73.1%, the third most affected by the global pandemic, after construction at 76.6% and manufacturing at 74.91% in 2020. ** The South African cabinet has approved a goal to reduce greenhouse gas emissions to net zero by 2050, but still plans to burn coal till that time. 5,000 MW of coal power capacity is forecast to still be operating in 2050.New coal power stations are under construction in Kusile and Medupi, with another 1,000 MW expected to come online by 2030.

Australian Coal News:

* White heaven Coal, Australia's biggest independent coal miner has called the resolution, which seeks a plan demonstrating how it would wind up its production assets and operations in a manner consistent with the goals of the Paris

Agreement, a misrepresentation" and said the company has no intention of shutting down its mining operations. * Switzerland-based trading and mining firm Glencore will stop operating two of the five excavators at its 4.5mn t/yr Glendell thermal coal mine in Australia in response to a fall in coal prices that has already curtailed production at several other mines. The longer-term scale-back of operations at Glendell, which is part of Glencore's Mount Owen thermal coal mining complex New South Wales' (NSW) Hunter Valley, comes as a 2-3 week closure of the company's Australian coal mining operations starts this week.

Indonesian Coal News:

* Indonesia’s Energy and Mineral Resources Ministry has set its coal benchmark price HBA at USD 49.42 per tonne for September 2020, down from USD 50.34 per tonne in August 2020, lowest level on record amid subdued demand from big buyers, while global Over supply of coal was worsening. *In the first 8 months of 2020, Indonesia exported 217.4 mln tonnes of coal (excluding Lignite), based on Refinitiv vessel tracking data. This represents a net decline of -16.1% y-o-y, compared to the 259.1 mln tonnes exported in the same eight-month period of 2019. * Indonesia’s coal exports fell 8 percent in the first five months of 2020 compared with a year ago, according to data from Statistics Indonesia, led by a mammoth 35 percent drop to India as lockdown restrictions hit demand for power in the Asian giant.

US Coal News:

* US coking coal prices have stayed flat, with scant buying interest in Europe and US miners largely occupied by domestic contract negotiations or refusing to accept current market indications, keeping spot trades from concluding. While offers have risen significantly over the past two weeks, there remains little to no fresh spot trades reported at the higher price levels. * Weekly US coal production in September-end was estimated at 10.8 million tonnes last, up by 4.7% week on week, Energy Information Administration data showed. It was the first week on week increase in four weeks, and the highest level of production in as much time. The output has declined 21.1% compared to the same week a year ago.

Pet Coke News:

* Indian petcoke producer self-consuming the same for its gasification project led to increasing demand in the Indian Market. Cement output is expected to be stronger in post monsoon months in India but would actually depend on petcoke vis-a-vis coal price. Prices of US coke in India remain unchanged this week with limited trading activity. If the trend remains same, it may encourage domestic cement players to switch to coal in the coming months. * Due to limited supply and very few spot deals, the prices of US based petcoke has risen several dollars in recent weeks. The traders have pointed out that due to ongoing tepid market demand, suppliers have largely rolled over their contracts into next year and plan to start over from the next financial year for new contracts.

Shipping Update:

* With the world trade expected to heavily contract this year, the dry bulk order book has diminished significantly. The global trade has posted a massive decline this year, with estimates from the WTO pointing to an annual drop of between 13% and 32%. As on 1st September 2020, the total dry bulk order book comprises of 614 vessels. This number is much lower than the respective figures for September 2019 (870 units), 2018 (863 units).

* The data recently released by the Ministry of Shipping stated that the tonnages of vessels in India saw an increase of 9.7 percent from 11.55 MT to 12.68 MT between March 2017 and March 2020.The gains were largely led by a few important government initiatives intended towards incentivising the shipping sector, such as a reduction in GST from 18 per cent to 5 per cent on bunker fuel used in Indian flag vessels, providing cargo support to the Indian shipping industry through the right of first refusal (RoFR) etc.