Coal Monthly Review 08 August 2012
International Coal Prices
Origin Destination Grade FOB Avg. CNF Ex-Plot
Port Port (in kcal) GCV ($/MT) Freight ($/MT) (Rs/MT)
Indonesia ECI 3800 GAR 34 12.00 46.00 2816.92
Indonesia WCI 4200 GAR 39 14.50 53.50 3235.43
Indonesia ECI 5300-5100 GCV 33 12.00 45.00 2761.11
South Africa ECI 6500 GCV 105 20.00 125.00 7225.31
Australia ECI 5500 NAR 71 20.00 91.00 5328.03
Global Thermal Coal Index Prices Global Coking Coal Index Prices
Origin Grade Port FOB Price Change Change Particular (FOB Australia) in $/MT
in kcal ($/MT) W-o-W M-o-M 7-Aug 2 Week 4 week
South Africa 6000 NAR Richards Bay 88.52 2.90 -1.97 Platts Premium Low Vol 177.00 208.50 221.00
Australia 6700 GAD Newcastle 85.60 2.35 -2.45 Argus Premium HCC 180.00 213.38 218.93
Indonesia 6322 GAR Kalimantan 87.56 0.00 0.00 Platts HCC 64 Mid Vol 154.00 169.50 175.50
Thermal Coal imports at Paradip higher 57.50
1 USD vs INR
57.00
Thermal coal imports rose by nine per cent during the
56.50
first quarter of the current financial year at Paradip port,
which handles about a third of India's coal traffic, due to 56.00
lower international rates amid domestic supply prob- 55.50
lems, said traders and industry officials. 55.00
Imports at Paradip went up to 1.67 million ton against 54.50
1.53 million ton in the year ago period. 54.00
53.50
Even though Odisha is the second largest coal producer
in the country after Jharkhand with 25 per cent of total
deposits, the high ash content in its coal makes it less viable to produce power. Local industrial houses, therefore,
depend on low-ash contained coal produced in Indonesia, South Africa and Australia to blend with the domestic coal
for power generation.
Coal market in China does not look up yet
The Chinese coal market has been weak in the first half of the year, and may still experience hard times in the sec-
ond half amid slowing economy, high stocks among others.
China's GDP growth in the second quarter decreased to 7.6%, and in the first half year 7.8%, down by 1.4 percent-
age points from that for 2011. Accordingly, coal consumption only grew by 2.8% in the first half year. And the
growth rate of power generation also stayed lower at 3.7%.
The factors hindering coal consumption in the first half of the year mainly include: slowing economic growth, eco-
nomic restructuring and higher hydropower generation.
In the second half year, the growth in coal demand would still likely stay limited, though the economy may get accel-
erated to some extent. Under this scenario, the Chinese coal market would still be under pressure.
Indonesia miners cut 2012 thermal coal output forecast
Thermal coal output in Indonesia, the world's top exporter of the fuel, could be steady this year with 2011, at around
360 million tons, an industry group said on Tuesday, cutting its forecast as a global oversupply puts pressure on the
Coal Monthly Review 08 August 2012
industry.
"We see we may not reach our target of 390 million to 400 million tonnes, and the chances are it will be the same as
last year," Supriatna Suhala, executive director of the Indonesian Coal Mining Association, told Reuters.
Indonesia is the top supplier of thermal coal to China, its main market, but a slowdown in the Chinese economy cou-
pled with increasing output from Chinese hydropower stations has led to declining demand for power station fuel
from the world's second-largest economy.
SECL Road E-auction Grade Average Prices (Rs/MT)
Colliery (in GCV) July'12 June'12 May'12 April'12
Gevra OC (Stock) G 11 (Exceeding 4000 to 4300 GCV Range) 2200 2550 2700 2450
Dipka Expn (Stock) G 11 (Exceeding 4000 to 4300 GCV Range) - 2700 2900 2600
Baroud OC G 12 (Exceeding 3700 to 4000 GCV Range) - 1850 - 1900
Chhal OC G 12 (Exceeding 3700 to 4000 GCV Range) 2050 2400 2250
Kusmunda OC (Stock) G 11 (Exceeding 4000 to 4300 GCV Range) 2400 2650 - -
Coal spot contracts at NSEL in association with Aastha Minmet- a new source of imported coal for Indian
buyers
National Spot Exchange Limited (NSEL) in association with Aastha Minmet has recently launched deliv-
ery-based imported coal contracts which will be settled on a trade to trade basis. Speaking over
phone, Mr. Mohit Aggarwal, the managing director of Aastha Minmet highlighted the working of
the spot coal contacts & its utility. Following is the excerpt of his conversation with SteelMint:
How does the new Coal contact launched by NSEL works?
These are spot coal contracts and it doesn't involves futures trading. It works on a cash and carry model. Each buying
and selling transaction will be settled on a Trade to Trade Basis and result into compulsory delivery. The trading unit of
the contract is 500 metric tons and the maximum order size is 25,000 Metric tonnes.
Who can participate in the trade?
Anybody with a spot requirement for imported thermal coal can get into the trade. It is mostly aimed to meet the re-
quirement of small- and medium-sized steel and cement companies who source imported coal from countries like South
Africa, Indonesia & Australia. The exchange has a very transparent pricing policy and it also gives quality assurance to
its users.
From where is the Coal sourced and what is its specification?
The contract involves trade of Non-coking coal or thermal coal mostly sourced from South Africa, Indonesia, Australia
and US to be delivered at New Mangalore Port. The specification of coal traded in the exchange is of the standard grade
that is widely used in steel & cement plants.
How do you think would the market respond to such contracts?
We have got very good response from the market. A recent trade of 3000 MT of Coal through the exchange was settled
at Rs 7,300/MT Ex New Mangalore . We wish to offer 10-15 milion tonnes of thermal coal in a year. We have 2 more
supramax vessels with a quantity of 50,000 each waiting to be offered within a couple of days. Looking at the response,
we also have plans to launch Coking Coal or Coke contracts targeting Coke Oven plants but the time frame is not yet
decided.
Do you think these spot contacts will help in easing the coal shortage?
There term "Coal shortage" is much exaggerated than it actually is. There is abundant availability of Coal but it is not
easily reachable to small & medium scaled steel and cement mills. These firms have smaller coal requirements and they
cannot get into long-term purchase contracts. So, the selling of coal through the spot route is expected to meet their
smaller requirements with as ease.
Coal Monthly Review 08 August 2012
Vessel Freight
Load Discharge Cargo Current (USD/MT) Previous (USD/MT) Change
Port Port Qty (06-08-2012) (30-07-2012)
SUPRAMAX
Banjarmasin (Indonesia) Chennai 50,000 MT 10.60 10.50 0.1
Banjarmasin (Indonesia) Vizag 55,000 MT 10.20 10.10 0.1
Banjarmasin (Indonesia) Tuticorin 42,000 MT 12.50 12.40 0.1
Banjarmasin (Indonesia) Navalakhi 53,000 MT 13.60 13.60 0.0
Richards Bay (S.Africa) Kandla 53,000 MT 18.90 19.40 -0.5
Richards Bay (S.Africa) Chennai 50,000 MT 18.90 19.40 -0.5
Richards Bay (S.Africa) Paradip 53,000 MT 18.50 19.00 -0.5
PANAMAX
North Pulau Laut(Indonesia) Mundra 71,500 MT 8.60 8.60 0.0
North Pulau Laut(Indonesia) Goa 71,500 MT 8.90 8.90 0.0
North Pulau Laut(Indonesia) Dahej 68,000 MT 9.50 9.50 0.0
Richards Bay (S.Africa) Paradip 68,000 MT 17.90 19.50 -1.6
Richards Bay (S.Africa) Mundra 71,500 MT 15.40 16.80 -1.4
Richards Bay (S.Africa) Goa 71,500 MT 15.60 16.90 -1.3
Richards Bay (S.Africa) Dahej 68,000 MT 16.90 18.50 -1.6
Vessels expected at Major Ports
Name of the Vessel ETA / Arrival Cargo Qty (MT) Receiver PORT
VIZAG
MV.GRETA 10-Aug COKING COAL 51574 JINDAL,HIRA -
MV.YONG JIA 11-Aug COKING COAL 72860 JSPL -
MV.WADI ALYARMOUK 11-Aug COKING COAL 45000 SAIL -
MV.ASITA SUN 11-Aug COKING COAL 50000 SAIL
MV.CIELO LUCIA 12-Aug COKING COAL 71608 BHUSNAM
MV.MEENAKSHI 14-Aug COKING COAL 73579
MV.JUPITER 16-Aug STEAM COAL 74646
HALDIA
MV. NORD PHOENIX 8-Aug COKING COAL 18000 SAIL PORT KEMB
MV. GUANG MING FENG 10-Aug COKING COAL 18000 SAIL GLADESTONE
PARADIP
M.V."HAI KUO" 11-Aug STEAM COAL 44701 GODAVARI COMMODITY LTD INDONESIA
MV.AOM MILENA 12-Aug COKING COAL 66000 VISA HAYPOINT
MV.IKAN SAGAI 19-Aug STEAM COAL 54993 TATA SPONGE IRON LTD SOUTH AFRICA
MV.ANANGEL OMONIA 23-Aug COAL 30773 USHA MARTIN LTD
KRISHNAPATNAM
MV CAPTAIN HARRY 8-Aug COAL 46000 JSW INDONESIA
MV TALIA 8-Aug COAL 83850 JSW STEEL ENERGY RICHARDS BAY
MV NORD CREST 9-Aug COAL 33000 LANCO AUSTRALIA
MV GENCO WISDOM 9-Aug PET COKE 38191 JSW STEELS USA
MV KIRAN TURKIYE 10-Aug COAL 1,60,999
MV WELHERO 14-Aug COAL 84148 JSW RICHARDS BAY
MV GREAT WEALTH 15-Aug PET COKE 67136 PENNA CEMENT USA BABANT
MV SILVER MERCHANT 15-Aug STEAM COAL 1,43,000 ACC LTD RICHARDS BAY
KAKINADA
M.V.DUBAI GALACTIC (I) 10-Aug COAL 53900 COASTAL ENERGY
Coal Monthly Review 08 August 2012
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