Coal Insight 06 June 2012

International Coal Prices

Origin Destination Grade FOB Avg. CNF Ex-Plot
Port Port (in kcal) GCV ($/MT) Freight ($/MT) (Rs/MT)
Indonesia Vizag 6300-6100 GCV 87 11.00 98.00 5742.40
Indonesia Vizag 5500-5300 GCV 55 11.00 66.00 3948.96
Indonesia Vizag 5800-5600 GCV 80 11.00 91.00 5350.09
Indonesia Navlakhi 5300-5100 GCV 52 14.50 66.50 3976.99
South Africa East Coast 6350 GCV 87.5 19.50 107.00 6253.29
South Africa East Coast 6300 GCV 89.5 19.50 109.00 6358.89
Australia East Coast 5400-5700 GCV 86.5 20.00 106.50 6246.80

Global Coal Index Prices

Origin Grade in kcal Port FOB Price Change Change
($/MT) W-o-W M-o-M
South Africa 6000 NAR Richards Bay 90.50 0.00 -8.98
Australia 6700 GAD Newcastle 91.85 0.00 -8.10
Indonesia 6322 GAR Kalimantan 102.12 0.00 -3.49

Australia & South Africa 57.00

1 USD vs INR
56.00
Downward pressure was continued to be felt in the ther-
55.00
mal coal market as Asian buyers waited for prices to
come down further. 54.00

53.00
Freight from Newcastle & Richard’s bay also came off
52.00
this week in line with a weaker freight market.
51.00

Australian coal producers fear that they will be in serious 50.00

trouble soon because the current spot prices are close to
49.00
their production costs. And the mines have to be opera-
tive even at these levels as they would still have to pay
the rail and port fees even if they don’t use it to export
coal
Indonesia

Demand is weak especially from China. Prolonged weakness in the market will force some high-cost producers in
Indonesia, the world's top exporter of thermal coal, to reduce supplies about 10 percent, said industry experts.

Freight on Imported coal from Indonesia to Indian ports went down by US$ 1.5/MT. Freight to East Coast India
reaches US$ 11/MT and US$ 14.50/MT to West Coast India. Experts are of view that such decrease in the freight
charges could be result of low traffic and arrival of monsoon in India.

Europe

The European steam coal market has been oversupplied in May, which, together with poor buying sentiment, has
caused another decrease in prices. Coal quotations have dropped to $83-84/t CIF at ARA ports by the end of the
month (from $95-96/t CIF in April). Exporters from the USA and Colombia are shipping large volumes of the material
to Europe at $72/t FOB and $79/t FOB respectively.
 Coal Insight 06 June 2012

India

Indian based coal trader Adani has offered the lowest price of US$ 81.00/MT for coal having the calorific value of
6000 GAD and 15% total moisture for TNPL against TNPL’s recent tender. The total quantity of tender is for 300,000
MT and to be delivered by 6X 50000 MT lots. The deliveries must start from 3rd week of June 2012, by Supramax
shipments.

In discussion with a reputed trader based in West Coast of India, it was understood that demand for imported ther-
mal (Indonesian & South African) as well as coking (Australian) coal may remain intact for sometime if it was also to
be based on reports of CEA highlighting the need to use imported coal in power plants. “The gap between demand of
coal and indigenous supply is likely to increase with time with indigenous coal supplies not being able to keep
pace with the capacity addition in the power sector.” (Report of The Group for Studying Range of Blending of Im-
ported Coal with Domestic Coal, CEA, April 2012).

Traders of imported coal are of opinion that the government will have to formulate more proactive policies to make
import of coal more comfortable.

Coking Coal
Country Product Delivery terms Prices in (S/MT)
5-Jun 30-May
Australia Hard FOB Hay Point 220-222 220-223
China Hard C&F Jingtang (China) 234-236 235-237
Australia Semi-soft FOB Gladstone 130-135 130-135
China Semi-soft C&F Jingtang (China) 144-149 145-150
Australia PCI FOB Dalrymple Bay 140-145 140-145
China PCI C&F Jingtang (China) 154-159 155-160

There is no change in coking coal market this week. Supply of premium coal in Australia is still limited so suppliers
have kept the prices at $220-222/MT FOB Gladstone. Apart from the force majeure at BHP Billiton-Mitsubishi Alliance
declared in early April, mining at Carborough Downs, owned by Vale, was suspended on Friday for technical reasons.
However, this event is not expected to have a major impact on the market.

Chinese mills are focused on local coal offered at $210-215/t EXW, with 17% VAT, while import products are still too
expensive for them. Hard coking coal from Mongolia remains rather attractive for Chinese buyers at RMB 760-
800/MT C&F (volatiles – 26%, sulphur – 0.6%) and semi-soft material – at RMB 415/MT EXW, without 17% VAT. The
inventories are high at the ports & buyers prefer to book small lots from traders for their immediate needs.

Domestic Coal Prices at the Latest E-auction

Auction Date Mines Colliery Grade (GCV) Avg Price /MT
29-05-2012 SECL-ROAD GEVRA OC(STOCK) G 11 (EXCEEDING 4000 TO 4000 GCV RANGE) 2700
29-05-2012 SECL-ROAD CHHAL OC G 12 (EXCEEDING 3700 TO 4000 GCV RANGE) 2400
24-05-2012 SECL-ROAD LAXMAN OC (STOCK) G 11 (EXCEEDING 4000 TO 4000 GCV RANGE) 2500
22-05-2012 SECL-ROAD DIPKA EXPN (STOCK) G 10 (EXCEEDING 4300 TO 4600 GCV RANGE) 2900

• Domestic Coal at the recent SECL e-auction went up by Rs 200-300/MT.

• According to market players, "Bids were almost same. The rise in prices was the effect of hike in Royalty to 14%
from the previous rate of 10% w.e.f. 10th of May”
 Coal Insight 06 June 2012

Vessel Freight
Load Discharge Cargo Current (USD/MT) Previous (USD/MT) Change
Port Port Qty (04-06-2012) (28-05-2012)
SUPRAMAX
Banjarmasin (Indonesia) Chennai 50,000 MT 10.00 10.6 -0.6
Banjarmasin (Indonesia) Vizag 55,000 MT 9.70 10.3 -0.6
Banjarmasin (Indonesia) Tuticorin 42,000 MT 11.90 12.6 -0.7
Banjarmasin (Indonesia) Navalakhi 53,000 MT 13.00 13.7 -0.7
Richards Bay (S.Africa) Kandla 53,000 MT 20.30 21.2 -0.9
Richards Bay (S.Africa) Chennai 50,000 MT 19.70 20.7 -1.0
Richards Bay (S.Africa) Paradip 53,000 MT 19.80 20.8 -1.0
PANAMAX
North Pulau Laut(Indonesia) Mundra 71,500 MT 8.50 9.2 -0.7
North Pulau Laut(Indonesia) Goa 71,500 MT 8.80 9.5 -0.7
North Pulau Laut(Indonesia) Dahej 68,000 MT 9.40 10.2 -0.8
Richards Bay (S.Africa) Paradip 68,000 MT 18.40 19.8 -1.4
Richards Bay (S.Africa) Mundra 71,500 MT 15.80 17 -1.2
Richards Bay (S.Africa) Goa 71,500 MT 16.00 17.1 -1.1
Richards Bay (S.Africa) Dahej 68,000 MT 17.40 18.7 -1.3

Vessels expected at Major Ports

Name of the Vessel ETA / Arrival Cargo Qty (MT) Receiver PORT
Vizag
MV.GREEN OCEAN 1 6-Jun COKING COAL 50000 SAIL
MV.FILOMENA LEMBO 11-Jun COKING COAL 45000 SAIL
MV.TAI PRIZE 12-Jun COKING COAL 70511
MV.DIAMANTINA 15-Jun COKING COAL 50000 SAIL
MV.EVANGELIA PETRAKIS 18-Jun COKING COAL 73000
Haldia
MV. MAJA 6-Jun STEAM COAL 20300 ADANI INDONESIA
MV. KM IMABARI 13-Jun COKING COAL 18000 SAIL HAYPOINT
MV. PANTHAR MAX 17-Jun COKING COAL 20000 TATA STEEL NEW PORT
Paradip
M.V.ZEYNEP K 9-Jun COKING COAL 33500 SAIL GLADSTONE AUSTRALIA
M.V.AGIA IRANI 9-Jun STEAM COAL 35000 ADANI INDUSTRIES
M.V.DARYA MAA 13-Jun STEAM COAL 65300 TATA SPONGE
Krishnapatnam
MV.TORM ORIENT 8-Jun COAL 74598 SBO STEEL AUSTRALIA
MV.ELGIZNUR CEBI IS 8-Jun COAL 53155 MAHESWARI BROTHERS INDONESIA
MV.FRANCESCO 12-Jun PETCOKE 56609 MADARAS CEMENTS U.S.A
Mangalore
MV.TRANS NANJING 6-Jun COAL 79674 JSW MUMBAI
MV.JUBLIANT SUCCESS 8-Jun COAL 96207 JSW MUMBAI
 Coal Insight 06 June 2012

Disclaimer

Additional information is available upon request. Information has been obtained from sources believed
to be reliable but SteelMint Info Services LLP or its affiliates do not warrant its completeness or accuracy
except with respect to any disclosures relative to SteelMint and/or its affiliates and the analyst’s
involvement with the issuer that is the subject of the research. Opinions and estimates constitute our
judgment as of the date of this material and are subject to change without notice. Past performance is
not indicative of future results. This material is not intended as an offer or solicitation for the purchase
or sale of any item. The opinions and recommendations herein do not take into account individual
client circumstances, objectives, or needs and are not intended as recommendations of particular
products or strategies to particular clients. The recipient of this report must make its own independent
decisions regarding any product or items mentioned herein. Periodic updates may be provided on
industry specific developments or announcements, market conditions or any other publicly available
information.

Use of the information presented here is at your sole risk, and any content, material and/or data
presented or otherwise obtained through your use of the information in the document is at your own
risk and you will be solely responsible for any damage to you personally or your company or
organization or business associates whatsoever which in anyway results from the use, reliance or
application on such content material and/or data and/or information.

About SteelMint

An ISO 9001:2008 certified Steel Research and Analysis Company providing Steel Market information to
people in business of steel and helping them take informed decisions.

The Company provides complete coverage on more than 20 Steel Products (Steel raw materials, semi-
finished and finished products).

Publishing daily and weekly, fortnightly reports containing current prices, market sentiments, market
views/analysis, outlook and industry news.

Clients benefiting from SteelMint’s research and reports include major steel companies like NMDC, Sesa
Goa, JSPL, JSW, Essar Group, Vedanta Group, Aditya Birla Group, Arcelor Mittal, Tata Steel, BHP Billiton,
Citigroup, EnY, CRU Group and many more.

Our Offices:

Raipur: Kolkata:
301, 3rd Floor, Jeevan Parisar, 5th Floor, Vishvakarma Building,
Rajeev Nagar, Behind Crystal Ar- 86,Topsia Road, South-West
cade, Raipur (C.G) - 492 007, Block, Kolkata (W.B) - 700 046,
India India
Tel: +91 771 2284888 Tel: +91 33 22852063