COAL TRADER INTERNATIONAL

Volume 18 / Issue 164 / Thursday, August 23, 2018

Thermal coal sellers seek alternative Daily prompt physical thermal coal assessments, Aug 23

markets amid bearish China demand CV (kcal/kg) Window Platts symbol $/mt Chg
North East Asia
■■Mongolian coal more attractive to Chinese buyers NEAT Coal Index 5,750 NAR 15-60 day JKTCA00 83.72 +0.28
■■Indonesian producers look to domestic market
Atlantic

Singapore—Some Australian and Indonesian thermal coal sellers are CIF ARA 6,000 NAR 15-60 day CSARM01 96.20 -1.00

seeking alternative markets amid sluggish demand in China for FOB Richards Bay 5,500 NAR 7-45 day AAXEX00 75.65 -1.00
(continued on page 8)
Australia
FOB Newcastle 20% Ash 5,500 NAR 7-45 day AAVUW00 64.15 -0.25
FOB Newcastle 23% Ash 5,500 NAR 7-45 day AAVVB00 62.50 -0.25
Key Drivers/Market Highlights
FOB Newcastle Ash Differential AAVVA00 0.55
Atlantic thermal coal prices under bearish pressure
„„
FOB Newcastle 6,300 GAR 7-45 day CSNCB00 114.75 +0.05
CIF ARA futures firm across the curve
„„
Wide bid/offer for Australian cargoes
„„ Indonesia
FOB Kalimantan (Geared Supramax) 4,200 GAR 7-45 day CSBKI00 37.75 0.00
FOB Kalimantan (Geared Supramax) 3,800 GAR 7-45 day CSCKJ00 30.75 -0.50
FOB Kalimantan (Geared Supramax) 5,900 GAR 90-day CSAKH00 76.50 -0.50
Inside this issue FOB Kalimantan (Geared Supramax) 5,000 GAR 90-day CSAKI00 55.75 -0.25
Thermal Coal Forward Curves
„„ 2
India
South Africa Energy Coal sends more coal to export market
„„ 3
CFR India West (Gearless Panamax) 5,500 NAR 30-60 day CIWCI00 90.95 +0.95
China’s thermal coal demand may rise by 140 mil mt
„„ 3
CFR India West (Gearless Panamax) 5,000 GAR 30-60 day TCAKP00 66.75 -0.05
Weekly Prompt Physical Thermal Coal Prices
„„ 3
CFR India West (Gearless Panamax) 4,200 GAR 30-60 day TCAKT00 49.60 +0.20
Recent Heards in the Thermal Coal Market
„„ 4
CFR India West (Geared Supramax) 3,800 GAR 30-60 day TCAKR00 43.35 +0.20
Seaborne coking coal prices strengthen
„„ 6
CFR India East (Gearless Panamax) 5,500 NAR 30-60 day CIECI00 91.30 +0.95
Petcoke Weekly supplement
„„ 10
CFR India East (Gearless Panamax) 5,000 GAR 30-60 day TCAKJ00 65.85 -0.05
CFR India East (Gearless Panamax) 4,200 GAR 30-60 day TCAKU00 47.85 +0.20
PACIFIC THERMAL COAL KEY PRICE POINTS ($/mt)
CFR India East (Geared Supramax) 3,800 GAR 30-60 day TCAKS00 41.30 +0.20

CV (kcal/kg) Window Platts symbol $/mt Chg

China
NEAT Coal Index 5,750 NAR 83.72
PCC 1 (FOB Qinhuangdao 5,500 NAR) 89.85 PCC 1 (FOB Qinhuangdao) 5,500 NAR 7-45 day PCCQH00 89.85* -1.78
PCC 8 (CFR S China 5,500 NAR) 76.50 PCC 2 (FOB Qinhuangdao) 5,000 NAR 7-45 day PCCPN00 76.70* -1.00
PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPQ00 46.00 0.00
CFR India East 5,500 NAR 91.30
CFR India West 5,500 NAR 90.95 PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPP00 64.25 0.00
PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSC00 76.50 -1.25

Yuan/mt
FOB Kalimantan 4,200 GAR 37.75
PCC 1 (FOB Qinhuangdao) 5,500 NAR 7-45 day PCCQG00 615.00* -10.00
PCC 2 (FOB Qinhuangdao) 5,000 NAR 7-45 day PCCPM00 525.00* -5.00
PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPR00 314.86 +1.10
PCC 6 (VAT included) 3,800 NAR 30-60 day PCCPS00 365.24 +1.28
FOB Newcastle 5,500 NAR 64.15
FOB Newcastle 6,300 GAR 114.7 PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPO00 439.77 +1.53
PCC 7 (VAT included) 4,700 NAR 30-60 day PCCFB00 510.13 +1.77
PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSD00 523.62 -6.70
PCC 8 (Duty & VAT included) 5,500 NAR 15-60 day PCCFA00 607.40 -7.77
*Includes VAT
Source: S&P Global Platts

www.platts.com www.twitter.com/PlattsCoal
Coal Trader International Thursday, August 23, 2018

Atlantic thermal coal prices Thermal coal forward curves, August 23

Bid Ask Midpoint* Platts symbol Change* % Change
fall $1 on low spot demand CIF ARA 6,000 NAR
Sep-18 96.55 96.85 96.70 CSAM001 +0.50 +0.52
■■Spot prices drop $1/mt
Oct-18 96.00 96.30 96.15 CSAM002 +0.30 +0.31
■■Sources expect further downturns Q4-18 94.85 95.15 95.00 CSAQ001 +0.30 +0.32
■■Futures firm, supported by European complex Q1-19 92.05 92.35 92.20 CSAQ002 +0.60 +0.66
Q2-19 88.70 89.00 88.85 CSAQ003 +0.85 +0.97
London—Atlantic thermal coal prices remained under negative Q3-19 87.50 87.80 87.65 CSAQ004 +0.50 +0.57
pressure Thursday and supportive indicators were few and far between 2019 88.80 89.10 88.95 CSAY001 +0.65 +0.74
with sources expecting further downward corrections in the near term. 2020 83.55 83.85 83.70 CSAY002 +0.70 +0.84
2021 79.85 80.15 80.00 CSAY003 +0.60 +0.76
The CIF ARA 15-60 day price was assessed at $96.20/mt on
FOB Newcastle 6,300 GAR
Thursday, down $1 on day and $4.55 so far this week.
Sep-18 111.35 111.85 111.60 CSCM001 +0.55 +0.50
Sources explained the downturn was driven by increased Oct-18 108.75 109.25 109.00 CSCM002 +0.30 +0.28
renewable generation in Germany reducing the coal burn which had Q4-18 106.20 106.70 106.45 CSCQ001 +0.65 +0.61
been unseasonably strong due to the heat wave across Europe. Q1-19 102.30 102.80 102.55 CSCQ002 +0.45 +0.44
Q2-19 97.95 98.45 98.20 CSCQ003 +0.40 +0.41
Adding to this bearish sentiment was the overall lack of active Q3-19 95.15 95.65 95.40 CSCQ004 +0.10 +0.10
counterparties and liquidity in the market, with sources expecting this 2019 96.80 97.80 97.30 CSCY001 +0.30 +0.31
to hold through to the end of the month. 2020 90.45 91.45 90.95 CSCY002 +0.05 +0.06
2021 87.60 88.60 88.10 CSCY003 0.00 0.00
Furthermore, Chinese demand was heard limited in Asia trade, *Fields are calculated.
adding downward pressure to global markets.
Of the key origins serving Northwest Europe, Russian coal
continued to be reportedly well-offered while low sulfur US coals were
tighter in availability. PLATTS FORWARD CURVE COAL, AUGUST 23
A European trader said there was better supply of high sulfur US coals ($/mt) FOB Newcastle CIF ARA
but demand for these specs was very weak in both Europe and Asia. 120

Some more positive factors were heard Thursday; a European

trader expected a major buyer in the market to still require as much as
100
600,000 mt of spot coal before the end of the year, although no spot
deals were heard by Thursday close.
Elsewhere in the Atlantic Basin, South African coal prices remained 80
on their downward trajectory as sellers found it difficult to compete in
the international market.
Platts FOB Richards Bay 5,500 kcal/kg NAR price was assessed at 60
Sep-18 Oct-18 Q4-18 Q1-19 Q2-19 Q3-19 2019 2020 2021
$75.65/mt, down $1 on day and the lowest level since March 28.
Graph created using Platts Forward Curve – Coal data.

CIF ARA futures firm across the curve

European CIF ARA thermal coal futures rose in another illiquid
trading session. Sources said coal fundamentals were less supportive;
however, the European energy complex as a whole – particularly strong Platts physical thermal coal netbacks, Aug 23
carbon pricing – was moving the back end of the curve. CV Basis Sulfur Chg
The Cal-19 contract opened up 45 cents and traded within a 40 cent Coal ($/mt)
range through to market close, being assessed at $88.95/mt, up 65 CIF ARA CSARM01 6,000 Kcal/kg NAR 1.0% 96.20 -1.00
NEAT Coal Index JKTCA00 5,750 Kcal/kg NAR 1.0% 83.72 +0.28
cents on day. CFR India West CIWCI00 5,500 Kcal/kg NAR 0.8% 90.95 +0.95
— Joseph Clarke Freight ($/mt)
USEC-Rotterdam CDBUR00 Panamax 13.50 +0.50
Mobile-Rotterdam CDMAR00 Panamax 17.50 +0.50
Subscriber Note: UK Bank Holiday Roberts Bank-Japan CDRBK00 Panamax 15.20 +0.50
Richards Bay-India West CSAKL00 Panamax 14.30 +0.50
Due to a public holiday in the UK, the S&P Global Platts London office will be closed
on Monday, August 27 and there will be no Coal Trader International published on Penalties & Premia ($/mt)
that day. Platts normal UK publishing schedules will resume on Tuesday, August 28. Per 0.1% Sulfur (USGC) COPAP00 0.80 -0.05
Total S discount (USGC) COPBP00 15.20 -0.95
Platts thermal coal and coking coal prices assessed in Singapore for August 27
will be published in the next issue of Coal Trader International, dated Tuesday, Netbacks ($/st)
August 28. FOB US East Coast COUSC00 12,500 Btu/lb GAR 1.0% 83.36 -1.52
FOB US Gulf Coast COUGU00 11,500 Btu/lb GAR 2.9% 58.93 -0.52
For full details of Platts’ publishing schedule and services affected, refer to FOB Vancouver COVCU00 8,800 Btu/lb GAR 0.8% 49.85 -0.16
http://www.platts.com/HolidayHome. For queries, please contact
Netbacks ($/mt)
[email protected]
FOB Richards Bay CSEUW00 6,000 Kcal/kg NAR 0.8% 86.92 +0.49

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 2
Coal Trader International Thursday, August 23, 2018

South 32’s South African subsidiary sends more Weekly prompt physical thermal coal prices, Aug 17
CV (kcal/kg) Window Platts symbol $/mt Chg
thermal coal to export market in fiscal 2018 CIF Turkey 6,000 NAR 90-day CTCMT04 103.00 +1.00
FOB Colombia 6,000 NAR 90-day CSABZ00 92.00 +2.00
■■Realized export sales price at $79/mt FOB Russia Baltic 6,000 NAR 90-day CSAKC00 95.20 +2.80
FOB Russia Pacific 6,300 GAR 90-day CSAKG00 120.00 +1.00
■■More tons sent to export market in year ended June 30
■■SAEC managed as standalone business Platts Coal Switching Price Indicator (CSPI)
Platts UK Platts UK Platts Netherlands
London—Australian mining company South 32 posted losses in August 22, 2018 symbol (p/th) symbol (Eur/MWh) symbol (Eur/MWh)
Month ahead EUKVM00 76.34 EUKTM00 29.00 EDUTM00 19.64
domestic South African coal production in the financial year ending
Quarter ahead EUKVQ00 75.65 EUKTQ00 28.74 EDUTQ00 19.41
June 30, the company said in an earnings report Thursday, with tons Year ahead EUKVY00 72.86 EUKTY00 27.68 EDUTY00 18.48
bound for the domestic market sent to export. Efficiency used is 50% for gas plants, 35% for UK coal plants and 40% for Dutch coal plants. Platts
CSPI is the theoretical threshold at which gas is more competitive than coal in power generation.
The company’s South African thermal coal subsidiary, South Africa When the gas price is higher than the CSPI, CCGTs are more expensive to run than coal-fired plants.
Energy Coal (SAEC), produced 12.12 million mt of export coal during the
Clean dark spreads, Aug 22
period, a marginal fall on the year from 12.2 million mt.
Platts 35% Platts 45% Platts 35%
Domestic production showed greater losses with a 2018 volume of symbol efficiency symbol efficiency symbol efficiency
CPS*
15.15 million mt, down 9% on year. Germany (Eur/MWh)
The company said it experienced additional washing and logistics Month ahead CCGTM00 3.94 CCGUM00 11.49
costs as tons were redirected to the export market to maximize margins. Month ahead+1 CCGTM27 4.49 CCGUM27 12.01
Quarter ahead CCGTQ00 3.21 CCGUQ00 10.64
SAEC’s unit costs in financial year 2018 came to $36/t, up $7 on the Quarter ahead+1 CCGTQ27 2.66 CCGUQ27 9.85
year and an increase of $2 from its estimate, also owing to domestic Year ahead CCGTY00 -2.33 CCGUY00 4.60
tons being redirected to the export market. The company expects Year ahead+1 CCGTY27 -3.94 CCGUY27 2.57
Year ahead+2 CCGTY28 -3.69 CCGUY28 2.54
operational costs in 2019 to be $41/mt owing to an extended outage of
UK (GBP/MWh)
the dragline at its Klipspruit colliery and an increase in material Month ahead CCUZM00 15.79 CCHZM00 -1.73
movement at the Wolvekrans-Middelburg Complex. Month ahead+1 CCUZM27 16.85 CCHZM27 -0.67
South 32 said it has been managing SAEC as a standalone Quarter ahead CCUZQ00 19.76 CCHZQ00 2.25
Quarter ahead+1 CCUZQ27 21.44 CCHZQ27 3.92
business to deliver functional and operational cost savings from Season ahead CCUZS00 20.60 CCHZS00 3.08
financial year 2020. UK (Eur/MWh)
The report stated SEAC’s realized export sales price was $79/mt for Month ahead CCUTM00 17.58 CCHTM00 -1.92
the period. Month ahead+1 CCUTM27 18.76 CCHTM27 -0.74
Quarter ahead CCUTQ00 22.01 CCHTQ00 2.50
SEAC estimated it will produce 17.5 million mt of domestic coal in Quarter ahead+1 CCUTQ27 23.87 CCHTQ27 4.37
the next financial year owing to a new long-term contract to sell lower Season ahead CCUTS00 22.94 CCHTS00 3.43
quality domestic stockpiles to a South African customer, to maximize *The CPS clean dark spreads incorporate the cost of the UK government’s Carbon Price Support
levy. For full details of the rates, please see Platts methodology on www.platts.com.
margins. The report said there will be a continued drop in export Source: S&P Global Platts, EEX
production by roughly 5% subject to review and is based upon revised
guidance for Klipspruit. US FOB Coal Assessments, week ended Aug 17
— Piers De Wilde Btu/lb GAR Sulfur kcal/kg NAR Code $/mt
FOB Baltimore 13,000 2.6% 6,944 CUAAA04 82.00
FOB Hampton Roads 12,500 1.0% 6,667 CUABA04 98.34
FOB New Orleans 11,500 2.9% 6,111 CUACA04 68.24
China’s thermal coal demand may rise 140 mil Normalized
CUADA04 70.85
mt, supporting seaborne coal market: report FOB Baltimore
FOB Hampton Roads
6,000
6,000 CUAEA04 88.50
FOB New Orleans 6,000 CUAFA04 67.00
■■A rise in China’s thermal coal demand may bolster seaborne coal market Note: Loading 15-60 day basis
■■China’s Jan-Jul power demand grew 9% on year
Recent FOB US Coal heards, Aug 23
Date Product Heat content Tons (mt) Loading Type $/mt
China might see a 140 million mt increase in raw coal demand should
17-Aug FOB Baltimore 6900 NAR Unknown Unknown Offer 84.00
the currect rate of growth in thermal power continue in months to 17-Aug FOB New Orleans 6000 NAR Unknown Unknown Offer 71.00
come, giving the seaborne coal market boost, according to a Citi 9-Aug CFR WC India 6900 NAR 100,000 August Offer 112.50
Research report released Wednesday. 9-Aug CFR WC India 6900 NAR 110,000 Sep Offer 113.50
This is despite the fact that hydropower demand has been picking 9-Aug CFR WC India 6900 NAR 110,000 Sep Offer 116.00
9-Aug CFR WC India 6000 NAR 100,000 August Offer 102.50
up during this time. For coal demand, one of the key drivers of growth
27-Jul CFR EC India 6900 NAR Unknown Unknown Offer 116.00
in 2017 was the decline in hydropower output, which experienced 27-Jul CFR WC India 6900 NAR Unknown Unknown Offer 113.00
negative growth in early 2017 and ended 2017 down 1.7% year on year. 27-Jul CFR EC India 6000 NAR Unknown Unknown Offer 105.00
Although China’s hydropower output grew 2.9% in the first half of 2018, 27-Jul CFR WC India 6000 NAR Unknown Unknown Offer 102.00
it may not be able to derail thermal coal generation growth, which rose 26-Jul CFR West Africa 6000 NAR 50,000 Aug/Sep Trade 92.00

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 3
Coal Trader International Thursday, August 23, 2018

Recent heards in the thermal coal market

Date Grade of coal Details
Atlantic
23-Aug-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for September at $96/mt: Braemar
23-Aug-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for September at $94.50/mt: globalCOAL
23-Aug-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for September at $96.25/mt: globalCOAL
23-Aug-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for October at $97.25/mt: Braemar
23-Aug-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for October at $95.75/mt: globalCOAL
23-Aug-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $96.50/mt: globalCOAL
23-Aug-18 FOB Richards Bay 6,000 NAR BID: 50,000 mt for September at $93/mt: globalCOAL
23-Aug-18 FOB Richards Bay 6,000 NAR OFFER: 50,000 mt for September at $96.75/mt: globalCOAL
22-Aug-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $97/mt: globalCOAL
22-Aug-18 FOB Richards Bay 6,000 NAR OFFER: 50,000 mt for September at $97.50/mt EFP: globalCOAL
22-Aug-18 FOB Richards Bay 6,000 NAR BID: 50,000 mt for September at $94/mt EFP: globalCOAL
22-Aug-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $97.25/mt: globalCOAL
22-Aug-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for October at $98/mt: Braemar
22-Aug-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $97.25/mt: globalCOAL
22-Aug-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $97.50/mt: globalCOAL
22-Aug-18 DES AR ACPRSU 6,000 NAR BID: 50,0000 mt for October at $97.25/mt: globalCOAL
22-Aug-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for September at $97.25/mt: globalCOAL
22-Aug-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for September at $98/mt: Braemar

Pacific
23-Aug-18 FOB Kalimantan 3,800 NAR BID/OFFER: Panamax for early September at $38.50/mt vs $39/mt: trader
23-Aug-18 FOB Kalimantan 3,800 NAR OFFER: Supramax for September at $38-$38.50/mt: trader
23-Aug-18 FOB Kalimantan 3,800 GAR OFFER: Supramax for September at $30.50/mt: trader
23-Aug-18 FOB Kalimantan 5,000 GAR BID/OFFER: Panamax for September at $56-$56.50/mt vs $57-$57.50/mt: trader
23-Aug-18 FOB Newcastle 5,500 NAR BID/OFFER: Capesize for September at $60-$62/mt vs $65/mt: traders
23-Aug-18 FOB Newcastle 6,000 NAR TRADE: October 25,000 mt parcel at $116/mt: globalCOAL
21-Aug-18 FOB Kalimantan 3,800 NAR BID/OFFER: Supramax for end September at $37/mt vs $38-$38.50/mt: trader
21-Aug-18 FOB Kalimantan 3,400 NAR BID/OFFER: Supramax for September at $31/mt vs $31.50-$31.75/mt: trader
21-Aug-18 FOB Kalimantan 5,100 GAR BID: Panamax for September with 1.2% sulfur at $56/mt: trader
21-Aug-18 CFR E China 5,500 NAR OFFER: Russian cargoes at $70-$71/mt excluding 6% import tax: market source

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Coal Trader International Thursday, August 23, 2018

7.3% year on year in the first seven months of 2018, the report said. Spot dry bulk freight assessments, Aug 23
Platts symbol $/mt Chg
The expected growth in China’s thermal coal demand may also Capesize
be evidenced by the utilization rates of thermal power plants, which Australia-China CDANC00 11.45 -0.55
rose 5.3% year on year in the first seven months of 2018, according Queensland-Japan CIGAJ00 13.25 -0.70
to the report. New South Wales-Korea CINAK00 14.10 -0.70
Bolivar-Rotterdam CIBCR00 11.40 -0.40
The average utilization was 5,294 hours/year, indicating an average
Roberts Bank-Japan CDRKJ00 12.60 -0.55
utilization rate of 60% in 2011. This dropped to 4,165 hours/year with an Richards Bay-Rotterdam CIRBN00 9.65 -0.40
average utilization rate of 48% in 2016. This was largely due to the
Panamax
230GW of coal fired power capacity added over the past 5 years. Richards Bay-India West CSAKL00 14.30 +0.50
China’s power demand rose 9.4% year on year in the first half of Kalimantan-India West CSAKP00 10.00 +0.20
2018. In July 2018, China consumed 648.4 million MwH of power, up Richards Bay-India East CSAKN00 14.50 +0.50
6.8% year on year, taking China’s Jan-July power demand growth rate Kalimantan-India East CSAKR00 8.50 +0.20
Richards Bay-Rotterdam CIRRN00 12.25 0.00
to 9.0% year on year, the report said. In comparison, China Electricity
Richards Bay-Spanish Med CIRBT00 12.00 0.00
Council had expected power demand in 2018 to grow 5.5% year on year Richards Bay-Jorf Lasfar CIRBJ00 11.25 0.00
at the start of the year. Bolivar-Rotterdam CIBRN00 16.50 +0.50
— Reggie Le USEC-India CDBUI00 34.25 +0.25
USEC-Rotterdam CDBUR00 13.50 +0.50
USEC-Brazil CDBUB00 13.25 +0.25
Mobile-Rotterdam CDMAR00 17.50 +0.50
EU CO2 price hits 10-year Mobile-Taranto CDMAI00 16.00 +0.50
high at Eur20.70/mt Roberts Bank-Japan
Australia-China
CDRBK00 15.20 +0.50
CDBFA00 13.25 +0.50
■■Highest front-December carbon price since 2008 Australia-India CDBFAI0 15.50 +0.75

■■Compliance buyers and financials continue to drive prices

London—EU carbon dioxide allowances under the EU Emissions

Trading System powered up to Eur20.70/mt ($23.93/mt) Thursday for
Coking coal swaps assessment, August 23
Platts symbol $/mt Chg % Chg
the first time since 2008, on power sector demand and bullish TSI Premium Hard Coking Coal Australia Export FOB East Coast Port
sentiment ahead of looming multi-year supply cuts. Sep-18 MCPLM01 182.750 -0.25 -0.14
EU Allowance futures contracts for delivery in December 2018 on Oct-18 MCPLM02 184.400 -0.58 -0.31
the ICE Futures Europe exchange rallied as high as Eur20.70/mt on Nov-18 MCPLM03 186.420 -0.27 -0.14
Q4-18 MCPLQ01 186.330 -0.42 -0.22
Thursday, before easing back to Eur20.38/mt at the close, up 58 euro
Q1-19 MCPLQ02 189.000 -0.33 -0.17
cent from Wednesday’s close. Q2-19 MCPLQ03 183.670 -0.41 -0.22
Carbon prices have seen extraordinary gains over the last 18 months 2019 MCPLY01 181.880 +0.05 +0.03
as the market braces for sharp supply cuts starting in January, which are
expected to leave the market short of allowances in the next few years.
This has led compliance entities like power plant operators in
Europe to lock in carbon allowances in the forward market, and Metallurgical coke, Aug 23
financial companies to buy up volume ahead of a likely supply squeeze. Seaborne
A London-based carbon trader on Thursday said the carbon price % CSR Platts symbol $/mt Chg % Chg
FOB North China 66/65 MCCNC00 377.00 +10.00 +2.72
continues to be pushed higher by long-term supply constraints and
CFR India 66/65 MCCNI00 394.00 +10.00 +2.60
strong underlying demand from power generators and financials. FOB North China 62 AAWVL00 368.00 +10.00 +2.79
“The risk of a correction is very high but I think it gets bid because CFR India 62 MCCEI00 385.00 +10.00 +2.67
hedge fund guys don’t have as much price sensitivity,” the trader said. Domestic
“There are equity hedge funds with massive portfolios who are Yuan/mt
jumping onto this,” he added. DDP North China (weekly) 62 AAWVJ00 2520.00 +70.00 +2.86

Short-term traders are also likely to “just trade systematically so $/mt

FOB North China equivalent (DDP weekly) 62 PLVHM04 375.82 +13.13 +3.49
will ride this trend up and buy dips, if they ever come,” he said.
Underlying compliance buyers are also driving the gains, with
power generation fuel price dynamics still favoring emissions-intensive
fuels, the trader said.
Platts China PLV, met coke price differentials, Aug 23
“As long as gas keeps rallying more than coal, then they will Price spreads Platts symbol $/mt
continue to feed off each other,” he said. Import-Shanxi Premium Low Vol CFR China PLVHK04 -21.79
Natural gas prices have rallied this year, while coal prices have Import-port stock Premium Low Vol CFR China PLVHL04 -5.45
been relatively stable, helping to maintain the profitability of coal-fired 62% CSR coke export-domestic FOB North China PLVHN04 -7.82

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 5
Coal Trader International Thursday, August 23, 2018

power generation in Europe. Seaborne coking coal prices

European wholesale power prices have increased sharply in strengthen amid some buying interest
August, boosting the clean dark spread — the profit margin on power
after accounting for the cost of coal and carbon allowances. Singapore—Asia Pacific seaborne metallurgical coal spot prices edged
With coal emitting roughly twice the CO2 emissions of gas per higher as buying interest continued to gradually return.
megawatt-hour, this props up utility hedging demand for carbon S&P Global Platts assessed Premium Low Vol coal up 75 cents to
allowances on the forward curve. $184.50/mt FOB Australia, while the CFR China price was up 50 cents
A southern-Europe based carbon and energy analyst said carbon to $189/mt Thursday.
prices have confounded expectations. In the FOB market, a trade was concluded Wednesday at $202.50/
“It’s absolutely stunning. Carbon is beating everyone’s expectations mt FOB Australia for a blended cargo of Premium Low Vol, 70-72%
month after month,” the analyst said. CSR, 19-20% VM, Ash 10-11%, 50,000 mt, September laycan.
“The whole energy complex is pretty strong and there seems to be Another trade was concluded at $197/mt FOB Australia for
margin to gain further ground. If you add to that, that liquidity is not at Premium Mid Vol, 67-69% CSR, 25,000 mt, September laycan.
its highest levels, it’s hard to rule out further upside,” he said. Market participants in the Asia Pacific region said these trades
“Is it sustainable? We’ll discover that. Anything that goes up were not repeatable or representative.
quickly usually comes down as quickly. Carbon is not that different,” One miner said the FOB market beyond Asia Pacific had been
he said. healthy, but he did not expect traded levels to be this high.
“The fact that carbon has not dropped yet since the beginning of He added that Asia Pacific participants, including Chinese traders
the year is of course reinforcing the idea that this is a bull market. The or steelmakers, would not consider a blended cargo of Premium Low
question still remains ‘at what price are they [financial players] willing Vol as they require brand certainty for their coal blending purposes.
to sell?’ We can guess that for utilities. I think it won’t be that simple Elsewhere in Northeast Asia, a Japanese steelmaker said “market
for hedge funds,” he said. sentiment is far from these values” referring to the traded price.
The main driver of the carbon price gains over the last 18 months is Also in India, a buyer said Indian consumers “will not be paying
the upcoming Market Stability Reserve — a set-aside pool of these price” and the spread between a Premium Low Vol and Premium
allowances to keep surplus volume out of the market. Mid Vol should be around $3/mt — a contrast to the traded level which
The MSR was agreed by the EU Parliament and Council in late suggested a spread of $5/mt.
2015 and strengthened under amended legislation which came into The highest indicated bid Thursday was $180/mt FOB Australia for
force in 2018. Premium Mid Vol, 67-69% CSR, and the most competitive offer was
Starting in January, the MSR will curb the 1.655 billion mt $185/mt FOB Australia for the same type of coal, 80,000 mt,
oversupply of allowances by 24% of the net surplus each year from September 10-20 laycan.
2019 to 2023, returning the market to a more balanced state after In China, some buying interest was heard among steelmakers but
several years of oversupply. no urgency was showed in procuring cargoes.
That will translate into an estimated cut to carbon auction supply The highest indicated bid was at $184/mt CFR China for a Semi
of about 400 million mt in 2019, or 40% down from 2018 volumes. Premium blend, 67-69% CSR.
The latest jump in carbon prices also came in a month when A cargo of Premium Low Vol, 71-73% CSR, Panamax volume, end
primary supply from auctions fell by almost 50% to 46.6 million mt as September laycan was heard offered in the market to both traders and
governments curbed sales during the summer vacation period. end-users. No trades were heard concluded.
That could leave prices vulnerable to a downward correction in “The market will be watching this cargo closely,” one steelmaker
September when auction volumes rebound to 82.4 million mt, and rise said, as it may then set market expectations given the absence of
further to 97.3 million mt in October. trades of first tier coking coal in the last two weeks.
— Frank Watson
PCI segment trades
In the PCI segment, a trade was concluded Thursday at $127.50/mt
FOB Australia for an Australian PCI, 35,000 mt, September laycan. No
specifications were provided for this type of PCI.
In the met coke segment, at least two trades were heard
concluded Thursday around $361-$364/mt FOB China for Chinese
62/60% CSR coke, 25,000 mt, early October laycan. Market
participants had mixed responses on the repeatability and
representability of these trades.
Sources placed an average $10/mt spread for Chinese 62/60%
coke to Chinese 64/60% coke.
“While it is unlikely the met coke market will correct downwards, I
doubt it will break through $400/mt levels” a seller said, expecting
prices to continue edging higher, and then stabilize in the near term.

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 6
Coal Trader International Thursday, August 23, 2018

Platts daily metallurgical coal assessments, Aug 23

Asia-Pacific coking coal ($/mt)
Platts FOB Change Platts CFR Change Platts CFR Change
symbol Australia symbol China symbol India
HCC Peak Downs Region HCCGA00 185.50 +0.75 HCCGC00 190.50 +0.50 HCCGI00 201.00 +1.50
Premium Low Vol PLVHA00 184.50 +0.75 PLVHC00 189.00 +0.50 PLVHI00 200.00 +1.50
HCC 64 Mid Vol HCCAU00 157.25 -0.25 HCCCH00 170.50 +0.25 HCCIN00 172.75 +0.50
Low Vol PCI MCLVA00 127.00 -0.50 MCLVC00 140.25 0.00 MCLVI00 142.50 +0.25
Mid Tier PCI MCLAA00 126.00 -0.50 MCLAC00 139.25 0.00 MCVAI00 141.50 +0.25
Semi Soft MCSSA00 120.75 -0.50 MCSSC00 134.00 0.00 MCSSI00 136.25 +0.25
TSI coking coal indices ($/mt)
TSI Premium Hard (PHCC) FOB Australia TS01034 182.40 +1.60
TSI Hard FOB Australia TS01035 157.25 -0.25
TSI Prem JM25 CFR Jingtang TS01044 189.00 +0.50
TSI Hard JM25 CFR Jingtang TS01045 170.50 +0.25
Atlantic coking coal ($/mt)
Platts FOB US
symbol East Coast Change VM Ash S
Low Vol HCC AAWWR00 175.00 +3.00 19% 8% 0.80%
High Vol A AAWWS00 184.00 +5.00 32% 7% 0.85%
High Vol B AAWWT00 156.00 0.00 34% 8% 0.95%
CFR NW Europe Change VM Ash S
PLV NetForward PLVHE00 199.05 +0.40 21.50% 9.30% 0.50%
Detailed methodology and specifications are found here: http://platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/metcoalmethod.pdf.

PCC Met (Platts China Coal – Metallurgical) (Yuan/mt)*

Platts Ex-washplant Platts Free-on-Rail Platts DDP Tangshan Platts CFR China
symbol symbol symbol symbol equivalent ($/mt)
PCC Met Shanxi Premium Low Vol PCCMA04 1560 PCCMB04 1595 PCCMC04 1805 PLVHJ04 210.29
PCC Met Shanxi High Sulfur Premium Low Vol PCCMD04 1080 PCCME04 1115 PCCMF04 1325
PCC Met North China Fat Coal — — PCCMG04 1500
PCC Met Shanxi PCI PCCMH04 930 PCCMI04 965 PCCMJ04 1150
PCC Met Shandong Semi Soft PCCMK04 980 PCCML04 1000 —

PCC Met Rail Freight Shanxi – Tangshan PCCMM04 230

PCC Met Truck Freight Shanxi – Tangshan PCCMO04 245
*Weekly (assessed August 21).

North China prompt port stock prices

Platts Ex-stock Jingtang Platts CFR Jingtang
symbol (Yuan/mt, incl VAT) symbol equivalent ($/mt)**
Premium Low Vol* AAWZN00 1580.00 AAWZO00 193.95
HCC 64 Mid Vol* AAWZP00 1530.00 AAWZQ00 187.69
*Weekly (assessed August 17), 20-day delivery from date.
**Ex-stock price, net of port charges, import tax and VAT.

HCC assessed specifications

CSR VM Ash S P TM Fluidity
Premium Low Vol 71% 21.50% 9.30% 0.50% 0.05% 9.70% 500
HCC Peak Downs Region 74% 20.70% 10.50% 0.60% 0.03% 9.50% 400
HCC 64 Mid Vol 62% 21.50% 8.00% 0.45% 0.06% 10.50% 100
Penalties & Premia: Differentials ($/mt)
Within Platts % of Premium Low Vol FOB Platts Net Value
Min-Max symbol Australia assessment price symbol ($/mt)
Per 1% CSR 60-71% CPCSA00 0.50% CPCSP00 0.92
Per 1% VM (air dried) 18-27% CPVPA00 0.50% CPVMP00 0.92
Per 1% TM (as received) 8-11% CPTPA00 1.00% CPTMP00 1.85
Per 1% Ash (air dried) 7-10.5% CPAPA00 1.50% CPPAP00 2.77
Per 0.1%S (air dried) 0.3-1% CPSPA00 1.00% CPSPV00 1.85
US low-vol HCC Penalties & Premia; Differentials ($/mt)
Within Platts % of US low-vol HCC FOB Platts Net value
Min-Max symbol USEC assessment price symbol ($/mt)
Per 1% CSR 50-64% CPPBA00 0.50% CPPBB00 0.88
40-49% CPPBC00 0.30% CPPBD00 0.53
Per 0.1% S 0.70-1.05% CPPBE00 0.75% CPPBF00 1.31
1.06-1.25% CPPBG00 1.10% CPPBH00 1.93
Per 1% TM (as received) 6-11% CPPBK00 1.00% CPPBL00 1.75
Per 1% Ash 5-10% CPPBI00 1.75% CPPBJ00 3.06
The assessed price of HCC Peak Downs® originates with Platts and is based on price information for a range of HCCs with a CSR> 67% normalized to the standard of HCC Peak Downs® (CSR 74%). Peak
Downs® is a registered trade mark of BM Alliance Coal Operations Pty Limited “BMA”. This price assessment is not affiliated with or sponsored by BMA in any way.

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 7
Coal Trader International Thursday, August 23, 2018

PLV CFR China. The lowest offer indicated was at $187/mt CFR China for the
The most competitive offer was at $370/mt FOB China for Chinese same type of coal. No data was excluded from this assessment. The above
64/62% coke. rationale applies to Platts premium low vol CFR China assessment (PLVHC00) &
Meanwhile, Platts assessed domestic Coke 12.5% ash DDP North TSI Prem JM25 CFR Jingtang (TS01044)
China up Yuan 70 to Yuan 2,520/mt Thursday, at the equivalent of
$375.82/mt FOB China, up $13.13/mt on the week.
— Yi Le Weng, Kate Zhou
Thermal coal sellers seek alternative
Hard Coking Coal (Premium Low Vol) markets amid bearish China demand ... from page 1
FOB Australia Assessment Rationale
Platts assessed Premium Low-Vol HCC up 75 cents to $184.50/mt FOB Australia seaborne cargoes, sources said Thursday.
Thursday. The most competitive offer was at $185/mt FOB Australia for an There were limited market activities on Thursday following a deal
Australian Premium Mid-Vol with 67-69% CSR, 80,000 mt cargo with heard on Monday for Australian 5,500 kcal/kg NAR thermal coal for
September 10-20 laycan. This was for a coal assessed at $2/mt discount to September-loading at $62.50/mt FOB Newcastle in either a single
Platts PLV FOB Australia. The highest bid indicated was at $180/mt FOB
Capesize cargo, or two Panamaxes, sold to a Chinese buyer.
Australia for an Australian Premium Mid-Vol with 67-69% CSR, accessed at $2/
mt discount to Platts FOB Australia. No data was excluded from this Bids for Australian 5,500 kcal/kg NAR were heard at $60-$62/mt
assessment. The above rationale applies to Platts premium low vol FOB FOB, while offers were at about $65/mt FOB.
Australia assessment, with the associated data code: PLVHA00 Sources said that given the wide bid-offer spread, it would be
difficult for both sides to agree on a deal price.
Hard Coking Coal (Premium Low Vol) “Chinese buyers are not too interested in looking at imports
CFR China Assessment Rationale currently because of the port restrictions,” a China-based trader said,
adding that sellers are looking at other markets such as India and
Platts assessed Premium Low-Vol HCC up 50 cents to $189/mt CFR China
Thursday. The highest bid indicated was at $184/mt CFR China for an Australian Europe as the “waiting time at Chinese ports is too long.”
Semi-Premium blend with 67-69% CSR, assessed at $5/mt discount to Platts Panamax freight rate from Australia’s Newcastle to southern China

Platts daily Asia Pacific metallurgical coal relativities – August 23, 2018
August 23 Spread Spread
CSR VM TM Ash S P Fluidity Vit % CFR China vs PLV vs HCC 64
ad ar ad ad ad ddpm $/mt

Peak Downs 74 20.50 9.50 10.50 0.60 0.03 400 71 190.50* 100.79%
*Peak Downs FOB Australia (China netback) after accounting for Haypoint-Qingdao Panamax freight = $177.25/mt
Saraji 72 18.50 10.00 10.50 0.60 0.03 160 66 189.00 100.00%
Premium Low Vol 71 21.50 9.70 9.30 0.50 0.045 500 65 189.00** 100.00%
**Premium Low Vol FOB Australia (China netback) after accounting for Haypoint-Qingdao Panamax freight = $175.75/mt
German Creek 70 19.00 10.50 9.50 0.54 0.06 180 70 188.00 99.47%
Illawarra 73 23.50 10.00 9.50 0.45 0.06 2000 58 185.50 98.15%
Moranbah North 68 23.30 10.00 8.50 0.50 0.04 1800 58 185.50 98.15%
Oaky North 70 20.50 10.00 9.50 0.65 0.065 700 80 186.75 98.81%
Goonyella 68 23.40 10.00 8.90 0.52 0.03 1100 62 185.50 98.15%
Goonyella C 70 23.50 10.00 9.80 0.55 0.04 1200 62 185.75 98.28%
Peak Downs North 68 22.80 10.50 9.80 0.51 0.05 900 63 184.00 97.35% 107.92%
Standard 70 22.50 9.00 9.50 0.45 0.06 150 53 182.50 96.56% 107.04%
Premium 70 25.50 9.00 8.80 0.50 0.07 300 56 182.50 96.56% 107.04%
Hail Creek 69 20.50 10.00 10.00 0.30 0.07 300 54 182.75 96.69%
HCC 64 Mid Vol 62 21.50 10.50 8.00 0.450 0.06 100 52 170.50 90.21% 100.00%
Lake Vermont HCC 62 21.50 11.00 7.50 0.44 0.07 120 50 170.50 100.00%
Carborough Downs 58 22.50 11.00 8.00 0.35 0.04 30 44 168.50 98.83%
Middlemount Coking 57 19.00 10.00 10.00 0.50 0.045 50 164.50 96.48%
Poitrel Semi Hard 45 24.00 12.00 8.00 0.43 0.05 300 54 158.50 92.96%
August 23 freight rates. Australia to China: Panamax = $13.25/mt Capesize = $11.45/mt
Notes: ad = air-dried; ar = as received; CSR = coke strength after reaction; ddpm = dial divisions per minute
The Platts Metallurgical Coal Relativities CFR China assessments do not reflect any restrictions or import duties, including duty rebates applied to coals under different import regimes, which may affect the
transacted price of the commodity. CFR China assessments are based on pricing information before any additional, if any, import tariffs are imposed such as a 3% import tax on Canadian, Russian and US
coals. The definition of CFR is based on International Chamber of Commerce Incoterms ® 2010.
A detailed explanation of the Platts Metallurgical Coal Relativities can be found here: http://www.platts.com/IM.Platts.Content/MethodologyReferences/MethodologySpecs/metcoalmethod.pdf
For further information about this data please contact [email protected]
Source: S&P Global Platts

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 8
Coal Trader International Thursday, August 23, 2018

was indicated at about $14/mt, a China-based source said. $38.50/mt FOB.

Chinese domestic prices for 5,500 kcal/kg NAR have been trending Panamax freight from south Kalimantan to south China was
lower this week, to be heard at Yuan 615/mt FOB Qinhuangdao, indicated at around $7.50/mt, shipping sources said.
sources noted. “There is a downtrend in the market for sure. Maybe it will continue
Buyers are also turning to Inner Mongolia coal, which are around at least until H2 September,” said an Indonesia-based producer source.
Yuan 10/mt lower than FOB Qinhuangdao prices, a trader said. Market participants felt the market was close to its bottom as
Market participants expected prices to remain weak and were prices have corrected substantially in the past few weeks.
mostly adopting a wait-and-watch approach. Offers for September-loading Panamax shipments of 5,000 kcal/kg
“Prices won’t go up so soon due to high stockpiles and softer GAR coal were at $57-$57.50/mt FOB, while a bid was heard at $56-
demand,” one market source said. $56.50/mt FOB.
Another China-based trader said he would wait for the market to — Arusha Das, Hui Min Lee
bottom out by the winter season.
“The market is very quiet, there is no interest to bid and there is no
port to discharge, so I will not be buying for now,” he said. Platts Coal NEAT Index Daily Assessment Rationale
Singapore—The Northeast Asia Thermal coal index was assessed Thursday at
Indonesian producers weighing options $83.72/mt CFR Kinuura, Japan, basis 5,750 kcal/kg NAR, with typical ash content
Seaborne coal prices were at a similar level as Indonesian domestic of 15% for delivery in the next 15-60 days. Platts assessed the spot price of
prices, said an Indonesia-based trader. This might prompt miners to maximum 23% ash 5,500 kcal/kg NAR thermal coal at $62.50/mt FOB Newcastle,
and the Newcastle 5,500 kcal/kg NAR price on a 20% ash basis at $64.15/mt FOB.
cover their domestic market obligations, taking away some of the
Platts used its ash differential for this Australian thermal coal, which has a current
excess volume from the seaborne market. market value of 55 cents per 1% ash basis, to derive a price for 5,750 kcal/kg NAR
However, he said: “The demand has to come back for the prices to coal with 15% ash at about $69.74/mt FOB. Panamax freight from Newcastle to
see some support.” Kinuura was indicated at $13.98/mt, which was added to the Newcastle 5,750
There were some prompt offers but sellers were not inclined to cut kcal/kg NAR 15% ash price. This rationale applies to symbol(s) JKTCA00
their prices yet, he noted.
Some of the miners have shipments to offer but were holding on to Platts Thermal Coal Indonesia
their prices, another Indonesia-based trader said, adding that miners 4,200 GAR Daily Rationale
would have to lower their prices soon given the sluggish demand. Singapore—S&P Global Platts assessed the 7-45 day price of FOB Kalimantan
He was offering a Supramax shipment of 3,800 kcal/kg GAR coal at 4,200 kcal/kg GAR coal at $37.75/mt Thursday, stable from Tuesday. Bids for
$30.50/mt FOB for loading in September. September loading Supramax shipments were at $37-$37.50/mt FOB, while an
Bids for September-loading Panamax shipments of 3,800 kcal/kg offer was heard at $38-$38.50/mt FOB. No trades were reported during Asian
trade hours. No data was excluded from the assessment. The above rationale
NAR coal were in the range of $38-$38.50/mt FOB, while an offer was
applies to the FOB Kalimantan 4,200 GAR assessment, with the associated
at $39/mt FOB. code: CSBKI00
Offers for Supramax shipments of 3,800 kcal/kg NAR were at $38-

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 9
PETCOKE WEEKLY
August 23, 2018

Petcoke market weighs Turkish lira, Platts weekly spot price petcoke assessments, Aug 22
Origin Sulfur Platts symbol $/mt Change
Chinese tariffs, softening demand Americas
FOB USGC High Sulfur 6.5% CPAAA00 85.00 -1.00
■■USGC 6% sulfur deal reported at $84.75/mt for September delivery
FOB USGC Mid Sulfur 4.5% CPAAF00 93.00 -1.50
■■High sulfur CFR South Korea deal heard at $118/mt FOB USWC Mid Sulfur 3.0% CPAAC00 102.50 -2.50
Houston—The delivered-Turkey petcoke market was unsurprisingly FOB USWC Low Sulfur 2.0% CPAGG00 122.00 -3.00
silent in the week that ended Wednesday. International
The overall uncertainty surrounding Turkey’s geopolitical landscape CIF Turkey 5.0% CPAGH00 115.00 -2.00
and the depreciation of the lira against the dollar had already slowed CFR India West 6.5% CPAGJ00 115 0.00
spot activity to a crawl last week and the addition of nationwide CFR India East 6.5% CPAGK00 116 0.00

holidays only further slowed the market.

“It was quiet these last few weeks, and even more now,” a
European trader said. US WEEKLY PETCOKE ASSESSMENTS
($/mt)
The lira equaled roughly 17 cents Wednesday, down from 29 cents a 200
USGC FOB High Sulfur (6.5%) USWC FOB Mid Sulfur (3%)
year ago. USGC FOB Mid Sulfur (4.5%) USWC FOB Low Sulfur (2%)
Market sentiment was bearish as global demand appeared weak.
As well as Indian buyers showing no great interest, sources said 150
Chinese buying was also weak.
The European trader said there were several cargoes already
booked for India that cannot be discharged and the source was unsure 100
if anyone in the market would be able to absorb the spare volume.
“It has to be South America, Brazil, or maybe Mexico as well, but
these buyers are also quiet at the moment,” the trader said. 50
Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18
A European producer-trader confirmed this bearish sentiment,
saying that in addition to national holidays in Turkey, Egyptian demand
was absent because of Eid al-Adha.
“Some traders in the Mediterranean are diverting or deferring
USGC MID SULFUR vs. HIGH SULFUR PETCOKE SPREAD
Turkish-booked cargoes due to instability there, and they fear to face a
($/mt)
dollar payment by buyers. 20
Platts CIF Turkey 5% sulfur petcoke price was assessed at $115/mt,
down $2 week on week based on market indications.
A fire started early Monday at Petrobras’ largest refinery — the 15

434,000 b/d Replan facility in southern Brazil — resulted in a

precautionary halt in operations, and one US-based petcoke source
10
said the halt could have an impact on global demand.
The same US source said Latin American demand remains strong,
with Mexico rumored to have bought a low-sulfur cargo off the US West 5
Coast for delivery to the East Coast of Mexico. Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18

Monthly and quarterly averages for Platts petcoke assessments ($/mt)

Product Sulfur Monthly code Jul-18 Jun-18 May-18 Quarterly code Q2-18 Q1-18
Americas
FOB USGC High Sulfur 6.5% CPAAA03 86.38 82.88 78.80 CPAAA05 80.04 71.65
FOB USGC Mid Sulfur 4.5% CPAAF03 95.00 93.25 91.20 CPAAF05 91.62 87.35
FOB USWC Mid Sulfur 3.0% CPAAC03 110.50 119.25 112.80 CPAAC05 114.92 103.08
FOB USWC Low Sulfur 2.0% CPAGG03 155.50 151.75 153.60 CPAGG05 148.62 132.92
International
CIF Turkey 5.0% CPAGH03 113.50 111.50 110.90 CPAGH05 111.50 107.67
CFR India West 6.5% CPAGJ03 114.00 109.38 110.80 CPAGJ05 111.38 108.15
CFR India East 6.5% CPAGK03 115.00 110.38 111.80 CPAGK05 112.38 109.15

www.platts.com www.twitter.com/PlattsCoal COAL

Coal Trader International Thursday, August 23, 2018

Korean buyers have also been heard to be in the market for high India fuel price comparison
sulfur petcoke, with a deal heard at $118/mt CFR, said the US source. CV kcal/kg Platts symbol $/mt
Coal
“They only buy when petcoke is available at attractive prices,” the
CFR India East 5500 NAR CIECI00 90.35
US source said. Petcoke
A high sulfur (6%) US Gulf Coast deal was reported this week at CFR India East 7500 NAR CPAGK00 116.00
$84.75/mt for 50,000 mt for September loading, while a USWC deal at 4.1%
sulfur for 55,000 mt for September loading was reported at $92.25/mt.
Platts assessed high sulfur (6.5%) USGC petcoke at $85/mt, down
INDIA FUEL PRICE COMPARISON
$1 from the prior week, based on a survey of market participants.
($/MMBtu) 6.5% S Petcoke CFR India East CFR India East coal
5.0
Chinese tariffs
US West Coast prices were said to be lower because of a decline in 4.5
Chinese demand, partly from the 25% tariff on US petcoke said to take
4.0
effect this week. The tariff will be assessed on the landed price, said
market sources. 3.5
In India, buying interest for imported fuel-grade petcoke appeared
3.0
to wane in the week as buyers seek cheaper substitutes, sources said.
An end-user source based in eastern India said he is covered until 2.5
Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18
December, so he is not actively looking for cargoes.

Recent petcoke heards

Date Product Sulfur % Price Details
21-Aug FOB USGC 6 84.75 TRADE: 50,000 mt, September loading
21-Aug FOB USWC 4.1 92.25 TRADE: 55,000 mt, September loading
08-Aug FOB USWC 2 145.00 TRADE: 40,000 mt, September loading
08-Aug CFR Turkey 6.5 106.00 TRADE: Unknown tons, September loading
08-Aug CFR India West Coast 6.5 122.00 TRADE: Unknown tons, September loading
07-Aug FOB USWC 4.1 94.55 TRADE: 60,000 mt, September loading
01-Aug FOB USWC 4.5 91.00 TRADE: 55,000 mt, September loading
01-Aug CFR East Coast India 6.5 117-118 OFFER: Unknown tonnage, loading
01-Aug CFR East Coast India 8.5 110.00 OFFER: Unknown tonnage, loading; Saudi origin
25-Jul CFR China 8 102.00 BID: Unknown tonnage, loading; Saudi origin
25-Jul CFR India 8 110-111 OFFER: Unknown tonnage, loading; Saudi origin
25-Jul CFR East Coast India 6.5 120.00 TRADE: Unknown tonnage, July loading
25-Jul CFR Honduras 6.5 96.00 TRADE: 40,000 mt, September loading
18-Jul FOB USGC 6.5 87.50+ TRADE: 50,000 mt, August loading
18-Jul FOB USWC 1.45 165.00 TRADE: 20,000 mt, unknown loading
17-Jul FOB USWC 4.5 86.30 TRADE: 60,000 mt, August loading
11-Jul CFR India 6.5 116-118 OFFER: Unknown tonnage, unknown loading
04-Jul CIF Turkey 6.5 103.00 TRADE: 45,000 mt, August loading
27-Jun CIF Turkey 4.5 112.00 TRADE: 50,000 mt, July loading, Venezuela origin
21-Jun CFR China 8.5 107-108 OFFER: Unknown tonnage, loading
21-Jun CFR China 6.5 110+ OFFER: Unknown tonnage, loading
20-Jun FOB USWC 2.5 155.00 TRADE: Unknown tonnage, loading
20-Jun CIF Turkey 4.7 110.00 TRADE: 60,000 mt, July loading
19-Jun FOB USGC 6 83.50 TRADE: 50,000 mt, August loading
19-Jun FOB USGC 6 83.50 TRADE: 50,000 mt, July loading
06-Jun CFR Uruguay 6.5 105.00 TRADE: 30,000 mt, July loading
06-Jun FOB USGC barge 6.5 79.00 TRADE: 50,000 mt, June loading
30-May FOB USGC 4 97.50 TRADE: 50,000 mt, June loading
23-May CIF Turkey 5 112.00 TRADE: 30,000 mt, July loading
23-May CFR East Coast India 8.5 106.00 TRADE: Unknown tonnage, July loading
23-May CFR China 8.5 102.00 OFFER: Unknown tonnage, loading
23-May CFR West Coast India 6.5 110.00 TRADE: Unknown tonnage, loading
22-May FOB USGC 6 79.50 TRADE: 40,000 mt, June loading
22-May FOB USWC 4.3 93.00 TRADE: 55,000 mt, July loading
15-May FOB USWC 4.5 91.10 TRADE: 55,000 mt, June loading
09-May FOB USWC 2 154.80 TRADE: 40,000 mt, June loading
09-May CIF Turkey 6.5 99.10 TRADE: 50,000 mt, May/June loading
02-May FOB USWC 2 156.00 TRADE: 40,000 mt, June loading
30-Apr FOB USGC barge 6.5 75.45 TRADE: 50,000 mt, May loading

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Coal Trader International Thursday, August 23, 2018

“We do have a requirement for a couple of shipments, but we are Europe fuel price comparison
not in a rush,” he added. Type CV kcal/kg Platts symbol $/mt
CIF Turkey Petcoke (cv-adjusted)* 6000 NAR CPAGL00 92.00
Given the current prices, he said, petcoke needs to see some CIF Turkey Coal 6000 NAR CTCMT04 103.00
correction, or else US coal makes much more sense. CIF ARA Coal 6000 NAR CSARM01 97.20
“Petcoke is not making sense to India, US coal is more compatible,” *Mid-sulfur (5.5%) 7,500 kcal/kg NAR petcoke adjusted to a 6,000 kcal/kg NAR pricing basis

said a trader based in southern India.

EUROPE FUEL PRICE COMPARISON
Offers for US petcoke were at around $122-$123/mt CFR East Coast
India which is “too high” for the buyers. ($/MMBtu) CIF ARA CIF Turkey (petcoke) CIF Turkey (coal)
4.5
“The problem is the bids from the cement buyers are low. They expect
the prices to correct so they not bothered to book anything,” he added. 4.0
Petcoke market remained lackluster, especially after the latest
Supreme Court’s notification of usage of imported petcoke only as 3.5
feedstock.
The trader heard some of the US petcoke shipments were stuck at 3.0
the Indian port, awaiting custom’s clearance. But Platts could not verify
the same during the Asian trade hours. 2.5
Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18
The offers for US petcoke were heard at $124/mt CFR West Coast
India, he said, adding, “the cement guys are not just touching it, as
Pacific fuel price comparison
most of the cement producers are well covered.”
Type CV kcal/kg Platts symbol $/mt
With the depreciation in the Indian Rupee, the ready stock petcoke NEAT Coal Index Coal 5750 NAR JKTCA00 NA
prices have also inched by $4/mt. USWC FOB Mid Sulfur Petcoke 7500 NAR CPAAC00 102.50
But volatility in the Turkish lira, slowing demand from Latin America, Shipping
and the ongoing trade war between China and US might factor in, Cargo Size (kt) Platts symbol $/mt
resulting in some correction in petcoke prices, market sources said. Roberts Bank-Japan 75 CDRBK00 NA
— Andrew Moore, with Arusha Das in Singapore and Joseph Clarke in London
PACIFIC FUEL PRICE COMPARISON
($/MMBtu) NEAT coal index USWC FOB Mid Sulfur petcoke plus freight
USGC HSFO (3.5% SULFUR) VS. DATED BRENT SPREAD 5.0
(%)
93
4.5
92

91 4.0

90
3.5
89

88 3.0
Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18
87
03-Jul 11-Jul 18-Jul 25-Jul 01-Aug 08-Aug 15-Aug 22-Aug Shipping Rates
When High Sulfur Fuel Oil is 85-90% of Dated Brent, refiners are more likely
to sell it into other markets, potentially lowering petcoke production. Platts symbol Cargo Size Platts symbol $/mt
(kt)
USGC to Iskenderun, Turkey CIPHTSZ 50 CIPHT00 21.75
USGC to Krishnapatnam, East Coast India CUECISZ 50 CUECI00 43.25
USGC to Qingdao, North China CUGNCSZ 50 CUGNC00 42.75
LIGHT (LLS) HEAVY SPREADS
($/b) Maya WCS (Nederland) SHIPPING RATES
0
($/mt)
50

-5
40

USGC to Qingdao, North China

-10 30 USGC to Krishnapatnam, East Coast India
USGC to Iskenderun, Turkey

20
-15
Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18
Note: Petcoke production is likely to contract when the spread to light crude (LLS) narrows. 10
Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 12