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 163.83 INR 12072 26.02 South Africa 5500 NAR USD 132.56 INR 9768 21.82

Australia 5500 NAR USD 108.03 INR 7960 12.11

Indonesia 5000 GAR USD 119.91 INR 8835 16.94

Indonesia 4200 GAR USD 86.17 INR 6349 12.71

Indicative Pet Coke Price

PET COKE Sulphur Price Monthly Change ($) Exchange Rate Change (Monthly) India-RIL(Ex-Ref.) -5% INR 14851 Saudi Arabia (CIF) + 8.5% INR 12422 ($169) INR 937.20 10.10 INR 73.68 -0.45

USA (CIF) - 6.5% INR 13329 ($181) 9.90

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 345.80 535.18 297.40 474.00 223.93 232.65 231.65 520.30 608.10

119.46 169.18 98.71 146.63 62.18 66.09 66.46 98.55 116.85

South African Coal News:

*The Sub-Saharan Africa’s pipeline of new coal projects has fallen by 47 per cent since 2015 amid the growing clamor to move away from coal to cleaner, greener fuel. Yet, 13 countries have decided to stick to coal to meet energy requirements. *South Africa’s thermal coal exports in the first seven months of 2021 has declined by nearly 13% on the year due to logistical constraints, social unrest and a sharp drop in demand from the Indian buyers. Country’s thermal coal exports in 2021 have dropped to 35 MT, down from 41 MT in the January-July period last year. *South Africa’s state-owned electricity utility, Eskom, is considering the utilization of carbon capture technology at a number of its coal-fired power plants, pending financial viability. With the country pursuing cleaner energy sources in the transition to a greener future, carbon capture will enable the utilization of coal in a more sustainable manner. *South Africa’s coal exports slowed in the first half of the year due to security problems and a lack of rail capacity by state-owned Transnet SOC Ltd. As thermal coal prices surpassed $100 a ton during the period, about 9 million tons of producers’ shipments were “lost” due to transport issues. Locomotive unavailability, coal line shutdown disruptions, derailments, and other operational challenges combined with vandalism and sabotage of rail infrastructure resulted in one of the worst export rail performances for the industry, according to miner Exxaro Resources Ltd. *South African coal price is steadily going up in the recent weeks amid increasing export

demand. High CV coal (6000kcal/kg) is hovering in the range of ($160-$170) per tonne as per the analysts. Ocean freight rate as well has also gone up to a great extent.

Australian Coal News:

* Australia has vowed to keep mining coal for export and said global demand was rising. Prime Minister Scott Morrison said Australia's energy exports were needed to power developing countries, and predicted technology would enable them to be burned "in a much more climate-friendly way" in the future. *In the first seven months of the year Chinese coal imports from Australia have totaled just 780,000 tons as Chinese restrictions on Australian coal have started to hurt. This represents a 98.6% drop compared with 56.8 million tonnes in the same period in 2020. Meanwhile, total Australian coal exports are up by just less than 400,000 tons compared with the first seven months of last year, representing a growth rate of 0.2%. Exports to India and South Korea have grown the most, up by 22.3 million tonnes (+96.3%) and 15.0 million tonnes (+72.2%) respectively. *Australian producer Whitehaven Coal's planned 10mn t/yr Vickery metallurgical and thermal coal project in the Gunnedah basin in northern New South Wales (NSW) has received approval from the federal and state governments of Australia. Whitehaven already received approval to extract 4.5mn t/yr of coal from Vickery but the firm expanded the scope of the mine in 2016 to extract 10mn t/yr. *After China unofficially boycotted Australian coal in last October, the flow of coal in the global world has undergone many radical changes. Australia is the world’s largest exporter of coking coal, used in making steel and also the world’s second latest exporter of Thermal coal, while China is the world's largest importer of coal, and is followed by India and Japan. But the Asian giant had boycotted Australian coal as a part of major escalation of the two countries' trade conflict. * Indonesia recently brought forward its goal for net zero emissions from 2070 to 2060 or sooner, ahead of the United Nations Climate Change Conference in Glasgow in November. But the country is wrestling with how to balance its environmental targets with the cost of pulling the plug on an industry that contributed $38 billion in export earnings in the first seven months of 2021. *Indonesian producers grappled to meet demand as heavy rainfall impacted operations in the Kalimantan province while supply tightness pushed up offer prices. The sellers who have cargoes are commanding prices as per their will and as the power plants are configured for a certain type of coal, the utilities are compelled to pay high prices to secure the cargoes. *Indonesia has set its coal benchmark price at the highest in over a decade, supported by surging demand in China, South Korea and Europe. The ministry set the benchmark coal price (HBA) at US$150.03 per ton in September, up 14.53 percent from the $130.99 per ton in August, and the highest since $116.65 per ton in November 2011. The rising power demand in China is exceeding the capacity of its domestic coal production. *The Indonesian government has walked back an earlier pledge to phase out all coalfired power plants, saying now that it will keep them running but fit them with carbon capture technology. The government’s “Long-term Strategy on Low Carbon and Climate Resilience 2050” says coal-fired power plants will still generate a large percentage of the country’s electricity over the next three decades, although it does bring forward the date for achieving carbon neutrality to 2060, a decade earlier than previously announced.

US Coal News:

* Coal demand and prices are booming as natural gas prices soar, but U.S. mining companies have not ramped up production to meet the new market conditions. Since climbing from a sharp drop in the early weeks of the COVID-19 pandemic, the overall U.S. coal supply response has been conservative. There are numerous

reasons mines in the long-struggling sector have not ramped up production, including limited access to capital, uncertain demand outlook, labor shortages and the time it takes to increase supply. * Coal production in the US totaled 12.01 million st in this week up by 1% week on week and 11% from year-ago levels. US coal production stood at 415.98 million st, up 8.4% from the corresponding period of 2020. *US Gulf petroleum coke production may be disrupted for weeks after a Category 4 hurricane made a direct hit on the refining and shipping hub of New Orleans, Louisiana in Early September. This may disrupt the procurement planning of the petcoke buyers, who have been eager for US Gulf coke production to return to normal levels following the Covid-19 pandemic's impact on refined product demand. Although refinery throughputs have risen in recent months, US Gulf high-sulphur coke production has remained lower than normal, in part because of a switch to lighter crudes.

Pet Coke News:

* Adverse weather conditions in the US are having an ongoing effect on petcoal supply with loading at ports largely affected. Petcoke cargoes delivered into the Mediterranean region have been scarce in number during this week. Such tight supply and high demand among Mediterranean buyers have caused the US petcoke price to scale up significantly and the upward trend will continue till the supply becomes abundant. * The US petcoke export fell by more than 27% this week compared to the week before due to devastation caused by Hurricane Ida. Most of the petcoke was exported from the Gulf Coast region and some quantity was shipped from the West Coast. The low-sulfur West Coast petcoke traded at a record-high price amid robust demand in September. * Though import of thermal coal to the Power Utilities in the country increased by 3% on a m-o-m basis, import of petcoke by Indian cement companies declined significantly in August due to due to higher prices. The elevated prices of foreign-origin coal and petcoke is likely to push Indian cement companies to buy petcoke from domestic refiners instead of importing.

Shipping Update:

*Ocean Conservancy releases a new report that makes the case for how major ports along the west coast of North America can lead the shipping industry’s transition away from fossil fuels to zero-carbon fuels such as green hydrogen and ammonia. The five ports featured in the new report – Los Angeles, Port of Oakland, Port of Tacoma, Port of Vancouver and Unalaska – accounted for over 300 billion U.S. dollars of trade. *The Ministry of Ports, Shipping and Waterways has approved the Shipping Corporation of India's Draft Scheme of Arrangement for the demerger of its non-core assets. The scheme mandates the formation or incorporation of a new wholly-owned subsidiary as a 'resulting company' for the demerger of non-core assets of the company. The state-owned Shipping Corporation of India had reported a 52.94 per cent decline in consolidated net profit to Rs 158.51 crore for the first quarter of the current fiscal. *Cargo traffic at the country’s major ports rose by 11.43 per cent to 57.59 million tons in August over the year-ago period. India has 12 major ports under the control of the central government — Deendayal (erstwhile Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), VO Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia) had handled 51.68 million tons of cargo in August last fiscal, Indian Ports Association (IPA) said in a statement. * Strong rates across dry bulk vessel segments drove the Baltic Exchange’s main sea freight index to their highest since 2009. The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, rose 91 points, or 2%, to 4,651, to hit its near 12-year peak. Shipping analysts have attributed the recent rally in the dry bulk market to global shipping constraints, including port congestion in China, and an overall rebound in commodities.