Brief report on

Imported Coal
Market.
 Contents

❖ Brief on imported coal

❖ Statistics of imported coal

❖ Properties of coal

❖ Types of coal

✓ High CV coal
✓ Medium CV coal
✓ Low CV coal

❖ Inco terms

✓ FOR
✓ Ex. Stock
✓ CIF

❖ Order placement process

 Brief on imported coal

As per the present Import policy, coal can be freely imported (under Open General
License) by the consumers themselves considering their needs based on their
commercial prudence.

Non-coking coals have higher ash content and are typically used in thermal power
plants as steam coals. Coking coal is the type of coal which on heating in the
absence of air undergoes a transformation into a plastic state, swells, and then
solidifies to form coke.

Coking Coal is being imported by Steel Authority of India Limited (SAIL) and other
Steel manufacturing units mainly to bridge the gap between the requirement and
indigenous availability and to improve the quality. Coal based power plants,
cement plants, captive power plants, sponge iron plants, industrial consumers and
coal traders are importing non-coking coal. Coke is imported mainly by Pig-Iron
manufacturers and Iron & Steel sector consumers using mini-blast furnace.
 Some statistics about imported coal

Fig. in Mln

Year Coking Non-Coking Total Coal

Coal Coal
2012-13 36 110 146
2013-14 37 130 167
2014-15 44 168 212
2015-16 45 159 204
2016-17 42 149 191
2017-18 47 161 208
2018-19 52 184 235
2019-20 52 197 249
2020-21 51 164 215
2021-22 57 152 209

Coal import stats.

249
250 235
212 208 215 209
204
191 197
200 184
167 168 161 164
159
146 149 152
150 130
110

100

52 52 51 57
44 45 42 47
50 36 37

0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Coking Coal Non Coking Coal Total Coal

 Properties of Coal
Total Moisture: The coal which has been exposed to contact with water in the
seam or in a washery, or coal wetted by rain, may carry free or visible water. This
water plus the moisture within the material, is referred to as to as total moisture.

Surface or Free Moisture: Free moisture is that quantity of water which is

physically adhering to coal. This is that quantity of water which is more than the
moisture holding capacity of a coal.

Inherent moisture: Moisture (water) that occurs in the microscopic structure of

the coal, generally filling pores, but not visible in large fractures.
Ash yield represents part of the original mineral matter in coal that does not
combust.
Volatile matters are those components of fuel which are readily burnt in the
presence of oxygen. This is usually a mixture of aromatic hydrocarbons, short and
long-chain hydrocarbons, and sulfur.
The fixed carbon is that portion of coal that remains as residue after volatile
matter distills off, after the sum of moisture and ash content in the coal is
subtracted.
Gross calorific value (GCV) or Higher Heating Value (HCV) is the amount of heat
released by the complete combustion of a unit of fuel. It assumes all water vapor
produced during combustion process is fully condensed.
Net Calorific Value (NCV) or lower heating value (LHV) or lower calorific value
(LCV) is determined by subtracting the heat of vaporization of the water vapor
from the higher heating value. It assumes water vapor leaves with the combustion
products without fully being condensed.
 Types of coal
➢ High CV Coal

Gross calorafic value- GCV (ARB) 5000 Kcal/kg(GAR)

Origin (Mine) PTBA, HM, Berau, MIP
Total Moisture (ARB) 26% +/-1%
Inherent moisture(ADB) 12% - 14%
Ash (ARB) 6% - 8 %
Volatile moisture (ADB) 38% - 42%
Total Sulphur (ADB) <1 %
Size (0-50) 90%

Gross calorific value- GCV (ARB) 4800 Kcal/kg(GAR)

Singluru,Berau,
Origin (Mine)
Padangbara,Ajamjaya
Total Moisture (ARB) 28% +/-1%
Inherent moisture(ADB) 12% - 14%
Ash (ARB) 6% - 8 %
Volatile moisture (ADB) 38% - 42%
Total Sulphur (ADB) <1 %
Size (0-50) 90%

Gross calorafic value- GCV (ARB) 4500 Kcal/kg (NAR)

Origin Bravus
Total Moisture (ARB) 18% +/-1%
Inherent moisture(ADB) 6%-8%
Ash (ARB) 24%-27%
Volatile moisture (ADB) 27%-32%
Total Sulphur (ADB) <1 %
Size (0-50) 90%
➢ Medium CV Coal

Gross calorific value- GCV (ARB) 4200 Kcal/kg(GAR)

Origin BSSR, Adaro, IBP, Kutai,
Total Moisture (ARB) 35% +/-1%
Inherent moisture(ADB) 12% - 14%
Ash (ARB) 6% - 8 %
Volatile moisture (ADB) 38% - 42%
Total Sulphur (ADB) <1 %
Size (0-50) 90%

Gross calorafic value- GCV (ARB) 4000 Kcal/kg (GAR)

Origin JHN, ATM, LHI
Total Moisture (ARB) 37% +/-1%
Inherent moisture(ADB) 12% - 14%
Ash (ARB) 6% - 8 %
Volatile moisture (ADB) 38% - 42%
Total Sulphur (ADB) <1 %
Size (0-50) 90%
➢ Low CV Coal

Gross calorafic value- GCV (ARB) 3600 Kcal/kg

Total Moisture (ARB) 43% +/-1%
Origin MIFA, SGM, AGM
Inherent moisture (ADB) 12% - 14%
Ash (ARB) 6% - 8 %
Volatile moisture (ADB) 38% - 42%
Total Sulphur (ADB) <1 %
Size (0-50) 90%

Gross calorafic value- GCV (ARB) 3400 Kcal/kg

Total Moisture (ARB) 43% +/-1%
Origin GAM,
Inherent moisture (ADB) 12% - 14%
Ash (ARB) 6% - 8 %
Volatile moisture (ADB) 38% - 42%
Total Sulphur (ADB) <1 %
Size (0-50) 90%

Gross calorafic value- GCV (ARB) 3200 Kcal/kg

Total Moisture (ARB) 45% +/-1%
Origin Bunyu
Inherent moisture (ADB) 12% - 14%
Ash (ARB) 6% - 8 %
Volatile moisture (ADB) 38% - 42%
Total Sulphur (ADB) <1 %
Size (0-50) 90%
 Inco. Terms

FOR: Free on Road/ Rail

Total amount= [Quoted rate of coal PMT (Coal + Transportation) + Cess 400 PMT +
5 % GST] X Contract qty.

Ex. Stock

Ex. Stock customers will receive two invoices.

1. Coal Invoice= [Quoted rate of coal PMT +Cess 400 PMT+ TCS +
5 % GST] x Contract qty.

2. Service invoice= [Port service charge (HZ- 465, DAH- 450)PMT + 18% GST]
x contract qty

Note:-Transportation will be borne by customer.

CIF
Cost, insurance, and freight (CIF) is an international shipping agreement,
which represents the charges paid by a seller to cover the costs, insurance,
and freight of a buyer's order while the cargo is in transit.

Total amount: - Quoted rate in USD PMT x Contract qty.

Note:- The buyer is responsible for any costs once the freight has reached the
buyer's destination port. (Custom duty, handling etc).
Order placement process

Inquiry from Customer

Offer to inquiry of customer

confirmation of customer

Signing of sales contract and

GCC

Advance payment of contract

qty or EMD 10% (Cash & carry)

DO generation

Delivery to customer from

respective port
To be continued…………………………