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

NEAT Coal Index 5,750 NAR 83.72
PCC 1 (FOB Qinhuangdao 5,500 NAR) 89.85
PCC 8 (CFR S China 5,500 NAR) 76.50
CFR India East 5,500 NAR 91.30
CFR India West 5,500 NAR 90.95
China
PCC 1 (FOB Qinhuangdao) 5,500 NAR 7-45 day PCCQH00 89.85* -1.78
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
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

FOB Kalimantan 4,200 GAR 37.75
FOB Newcastle 5,500 NAR 64.15
FOB Newcastle 6,300 GAR 114.7
Source: S&P Global Platts
Yuan/mt
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
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

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Coal Trader International Thursday, August 23, 2018
Atlantic thermal coal prices
fall $1 on low spot demand
■■Spot prices drop $1/mt
■■Sources expect further downturns
■■Futures firm, supported by European complex
London—Atlantic thermal coal prices remained under negative
pressure Thursday and supportive indicators were few and far between
with sources expecting further downward corrections in the near term.
The CIF ARA 15-60 day price was assessed at $96.20/mt on
Thursday, down $1 on day and $4.55 so far this week.
Sources explained the downturn was driven by increased
renewable generation in Germany reducing the coal burn which had
been unseasonably strong due to the heat wave across Europe.
Adding to this bearish sentiment was the overall lack of active
counterparties and liquidity in the market, with sources expecting this
to hold through to the end of the month.
Furthermore, Chinese demand was heard limited in Asia trade,
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.
A European trader said there was better supply of high sulfur US coals
but demand for these specs was very weak in both Europe and Asia.
Some more positive factors were heard Thursday; a European
trader expected a major buyer in the market to still require as much as
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
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
$75.65/mt, down $1 on day and the lowest level since March 28.
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
carbon pricing – was moving the back end of the curve.
The Cal-19 contract opened up 45 cents and traded within a 40 cent
range through to market close, being assessed at $88.95/mt, up 65
cents on day.
— Joseph Clarke
Subscriber Note: UK Bank Holiday
Due to a public holiday in the UK, the S&P Global Platts London office will be closed
on Monday, August 27 and there will be no Coal Trader International published on
that day. Platts normal UK publishing schedules will resume on Tuesday, August 28.
Platts thermal coal and coking coal prices assessed in Singapore for August 27
will be published in the next issue of Coal Trader International, dated Tuesday,
August 28.
For full details of Platts’ publishing schedule and services affected, refer to
http://www.platts.com/HolidayHome. For queries, please contact
support@platts.com
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Thermal coal forward curves, August 23
Bid Ask Midpoint* Platts symbol Change* % Change
CIF ARA 6,000 NAR
Sep-18 96.55 96.85 96.70 CSAM001 +0.50 +0.52
Oct-18 96.00 96.30 96.15 CSAM002 +0.30 +0.31
Q4-18 94.85 95.15 95.00 CSAQ001 +0.30 +0.32
Q1-19 92.05 92.35 92.20 CSAQ002 +0.60 +0.66
Q2-19 88.70 89.00 88.85 CSAQ003 +0.85 +0.97
Q3-19 87.50 87.80 87.65 CSAQ004 +0.50 +0.57
2019 88.80 89.10 88.95 CSAY001 +0.65 +0.74
2020 83.55 83.85 83.70 CSAY002 +0.70 +0.84
2021 79.85 80.15 80.00 CSAY003 +0.60 +0.76
FOB Newcastle 6,300 GAR
Sep-18 111.35 111.85 111.60 CSCM001 +0.55 +0.50
Oct-18 108.75 109.25 109.00 CSCM002 +0.30 +0.28
Q4-18 106.20 106.70 106.45 CSCQ001 +0.65 +0.61
Q1-19 102.30 102.80 102.55 CSCQ002 +0.45 +0.44
Q2-19 97.95 98.45 98.20 CSCQ003 +0.40 +0.41
Q3-19 95.15 95.65 95.40 CSCQ004 +0.10 +0.10
2019 96.80 97.80 97.30 CSCY001 +0.30 +0.31
2020 90.45 91.45 90.95 CSCY002 +0.05 +0.06
2021 87.60 88.60 88.10 CSCY003 0.00 0.00
*Fields are calculated.
PLATTS FORWARD CURVE COAL, AUGUST 23
($/mt) FOB Newcastle CIF ARA
120
100
80
60
Sep-18 Oct-18 Q4-18 Q1-19 Q2-19 Q3-19 2019 2020 2021
Graph created using Platts Forward Curve – Coal data.
Platts physical thermal coal netbacks, Aug 23
CV Basis Sulfur Chg
Coal ($/mt)
CIF ARA CSARM01 6,000 Kcal/kg NAR 1.0% 96.20 -1.00
NEAT Coal Index JKTCA00 5,750 Kcal/kg NAR 1.0% 83.72 +0.28
CFR India West CIWCI00 5,500 Kcal/kg NAR 0.8% 90.95 +0.95
Freight ($/mt)
USEC-Rotterdam CDBUR00 Panamax 13.50 +0.50
Mobile-Rotterdam CDMAR00 Panamax 17.50 +0.50
Roberts Bank-Japan CDRBK00 Panamax 15.20 +0.50
Richards Bay-India West CSAKL00 Panamax 14.30 +0.50
Penalties & Premia ($/mt)
Per 0.1% Sulfur (USGC) COPAP00 0.80 -0.05
Total S discount (USGC) COPBP00 15.20 -0.95
Netbacks ($/st)
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
FOB Vancouver COVCU00 8,800 Btu/lb GAR 0.8% 49.85 -0.16
Netbacks ($/mt)
FOB Richards Bay CSEUW00 6,000 Kcal/kg NAR 0.8% 86.92 +0.49
2
Coal Trader International Thursday, August 23, 2018
South 32’s South African subsidiary sends more
thermal coal to export market in fiscal 2018
■■Realized export sales price at $79/mt
■■More tons sent to export market in year ended June 30
■■SAEC managed as standalone business
London—Australian mining company South 32 posted losses in
domestic South African coal production in the financial year ending
June 30, the company said in an earnings report Thursday, with tons
bound for the domestic market sent to export.
The company’s South African thermal coal subsidiary, South Africa
Energy Coal (SAEC), produced 12.12 million mt of export coal during the
period, a marginal fall on the year from 12.2 million mt.
Domestic production showed greater losses with a 2018 volume of
15.15 million mt, down 9% on year.
The company said it experienced additional washing and logistics
costs as tons were redirected to the export market to maximize margins.
SAEC’s unit costs in financial year 2018 came to $36/t, up $7 on the
year and an increase of $2 from its estimate, also owing to domestic
tons being redirected to the export market. The company expects
operational costs in 2019 to be $41/mt owing to an extended outage of
the dragline at its Klipspruit colliery and an increase in material
movement at the Wolvekrans-Middelburg Complex.
South 32 said it has been managing SAEC as a standalone
business to deliver functional and operational cost savings from
financial year 2020.
The report stated SEAC’s realized export sales price was $79/mt for
the period.
SEAC estimated it will produce 17.5 million mt of domestic coal in
the next financial year owing to a new long-term contract to sell lower
quality domestic stockpiles to a South African customer, to maximize
margins. The report said there will be a continued drop in export
production by roughly 5% subject to review and is based upon revised
guidance for Klipspruit.
— Piers De Wilde
China’s thermal coal demand may rise 140 mil
mt, supporting seaborne coal market: report
■■A rise in China’s thermal coal demand may bolster seaborne coal market
■■China’s Jan-Jul power demand grew 9% on year
China might see a 140 million mt increase in raw coal demand should
the currect rate of growth in thermal power continue in months to
come, giving the seaborne coal market boost, according to a Citi
Research report released Wednesday.
This is despite the fact that hydropower demand has been picking
up during this time. For coal demand, one of the key drivers of growth
in 2017 was the decline in hydropower output, which experienced
negative growth in early 2017 and ended 2017 down 1.7% year on year.
Although China’s hydropower output grew 2.9% in the first half of 2018,
it may not be able to derail thermal coal generation growth, which rose
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Weekly prompt physical thermal coal prices, Aug 17
CV (kcal/kg) Window Platts symbol $/mt Chg
CIF Turkey 6,000 NAR 90-day CTCMT04 103.00 +1.00
FOB Colombia 6,000 NAR 90-day CSABZ00 92.00 +2.00
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
Platts Coal Switching Price Indicator (CSPI)
Platts UK Platts UK Platts Netherlands
August 22, 2018 symbol (p/th) symbol (Eur/MWh) symbol (Eur/MWh)
Month ahead EUKVM00 76.34 EUKTM00 29.00 EDUTM00 19.64
Quarter ahead EUKVQ00 75.65 EUKTQ00 28.74 EDUTQ00 19.41
Year ahead EUKVY00 72.86 EUKTY00 27.68 EDUTY00 18.48
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.
When the gas price is higher than the CSPI, CCGTs are more expensive to run than coal-fired plants.
Clean dark spreads, Aug 22
Platts 35% Platts 45% Platts 35%
symbol efficiency symbol efficiency symbol efficiency
CPS*
Germany (Eur/MWh)
Month ahead CCGTM00 3.94 CCGUM00 11.49
Month ahead+1 CCGTM27 4.49 CCGUM27 12.01
Quarter ahead CCGTQ00 3.21 CCGUQ00 10.64
Quarter ahead+1 CCGTQ27 2.66 CCGUQ27 9.85
Year ahead CCGTY00 -2.33 CCGUY00 4.60
Year ahead+1 CCGTY27 -3.94 CCGUY27 2.57
Year ahead+2 CCGTY28 -3.69 CCGUY28 2.54
UK (GBP/MWh)
Month ahead CCUZM00 15.79 CCHZM00 -1.73
Month ahead+1 CCUZM27 16.85 CCHZM27 -0.67
Quarter ahead CCUZQ00 19.76 CCHZQ00 2.25
Quarter ahead+1 CCUZQ27 21.44 CCHZQ27 3.92
Season ahead CCUZS00 20.60 CCHZS00 3.08
UK (Eur/MWh)
Month ahead CCUTM00 17.58 CCHTM00 -1.92
Month ahead+1 CCUTM27 18.76 CCHTM27 -0.74
Quarter ahead CCUTQ00 22.01 CCHTQ00 2.50
Quarter ahead+1 CCUTQ27 23.87 CCHTQ27 4.37
Season ahead CCUTS00 22.94 CCHTS00 3.43
*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.
Source: S&P Global Platts, EEX
US FOB Coal Assessments, week ended Aug 17
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
Normalized
CUADA04 70.85
FOB Baltimore
FOB Hampton Roads
6,000
6,000 CUAEA04 88.50
FOB New Orleans 6,000 CUAFA04 67.00
Note: Loading 15-60 day basis
Recent FOB US Coal heards, Aug 23
Date Product Heat content Tons (mt) Loading Type $/mt
17-Aug FOB Baltimore 6900 NAR Unknown Unknown Offer 84.00
17-Aug FOB New Orleans 6000 NAR Unknown Unknown Offer 71.00
9-Aug CFR WC India 6900 NAR 100,000 August Offer 112.50
9-Aug CFR WC India 6900 NAR 110,000 Sep Offer 113.50
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
27-Jul CFR EC India 6900 NAR Unknown Unknown Offer 116.00
27-Jul CFR WC India 6900 NAR Unknown Unknown Offer 113.00
27-Jul CFR EC India 6000 NAR Unknown Unknown Offer 105.00
27-Jul CFR WC India 6000 NAR Unknown Unknown Offer 102.00
26-Jul CFR West Africa 6000 NAR 50,000 Aug/Sep Trade 92.00
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 Officers of the Corporation: Charles E. Haldeman, Jr., Non-Executive
Chairman; Doug Peterson, President and Chief Executive Officer;
Volume 18 / Issue 164 / August 23, 2018 Ewout Steenbergen, Executive Vice President, Chief Financial Officer;
ISSN: 1746-8914 Steve Kemps, Executive Vice President, General Counsel
Editorial Director
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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.
The expected growth in China’s thermal coal demand may also
be evidenced by the utilization rates of thermal power plants, which
rose 5.3% year on year in the first seven months of 2018, according
to the report.
The average utilization was 5,294 hours/year, indicating an average
utilization rate of 60% in 2011. This dropped to 4,165 hours/year with an
average utilization rate of 48% in 2016. This was largely due to the
230GW of coal fired power capacity added over the past 5 years.
China’s power demand rose 9.4% year on year in the first half of
2018. In July 2018, China consumed 648.4 million MwH of power, up
6.8% year on year, taking China’s Jan-July power demand growth rate
to 9.0% year on year, the report said. In comparison, China Electricity
Council had expected power demand in 2018 to grow 5.5% year on year
at the start of the year.
— Reggie Le
EU CO2 price hits 10-year
high at Eur20.70/mt
■■Highest front-December carbon price since 2008
■■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
the first time since 2008, on power sector demand and bullish
sentiment ahead of looming multi-year supply cuts.
EU Allowance futures contracts for delivery in December 2018 on
the ICE Futures Europe exchange rallied as high as Eur20.70/mt on
Thursday, before easing back to Eur20.38/mt at the close, up 58 euro
cent from Wednesday’s close.
Carbon prices have seen extraordinary gains over the last 18 months
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
financial companies to buy up volume ahead of a likely supply squeeze.
A London-based carbon trader on Thursday said the carbon price
continues to be pushed higher by long-term supply constraints and
strong underlying demand from power generators and financials.
“The risk of a correction is very high but I think it gets bid because
hedge fund guys don’t have as much price sensitivity,” the trader said.
“There are equity hedge funds with massive portfolios who are
jumping onto this,” he added.
Short-term traders are also likely to “just trade systematically so
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.
“As long as gas keeps rallying more than coal, then they will
continue to feed off each other,” he said.
Natural gas prices have rallied this year, while coal prices have
been relatively stable, helping to maintain the profitability of coal-fired
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Spot dry bulk freight assessments, Aug 23
Platts symbol $/mt Chg
Capesize
Australia-China CDANC00 11.45 -0.55
Queensland-Japan CIGAJ00 13.25 -0.70
New South Wales-Korea CINAK00 14.10 -0.70
Bolivar-Rotterdam CIBCR00 11.40 -0.40
Roberts Bank-Japan CDRKJ00 12.60 -0.55
Richards Bay-Rotterdam CIRBN00 9.65 -0.40
Panamax
Richards Bay-India West CSAKL00 14.30 +0.50
Kalimantan-India West CSAKP00 10.00 +0.20
Richards Bay-India East CSAKN00 14.50 +0.50
Kalimantan-India East CSAKR00 8.50 +0.20
Richards Bay-Rotterdam CIRRN00 12.25 0.00
Richards Bay-Spanish Med CIRBT00 12.00 0.00
Richards Bay-Jorf Lasfar CIRBJ00 11.25 0.00
Bolivar-Rotterdam CIBRN00 16.50 +0.50
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
Mobile-Taranto CDMAI00 16.00 +0.50
Roberts Bank-Japan
Australia-China
CDRBK00 15.20 +0.50
CDBFA00 13.25 +0.50
Australia-India CDBFAI0 15.50 +0.75
Coking coal swaps assessment, August 23
Platts symbol $/mt Chg % Chg
TSI Premium Hard Coking Coal Australia Export FOB East Coast Port
Sep-18 MCPLM01 182.750 -0.25 -0.14
Oct-18 MCPLM02 184.400 -0.58 -0.31
Nov-18 MCPLM03 186.420 -0.27 -0.14
Q4-18 MCPLQ01 186.330 -0.42 -0.22
Q1-19 MCPLQ02 189.000 -0.33 -0.17
Q2-19 MCPLQ03 183.670 -0.41 -0.22
2019 MCPLY01 181.880 +0.05 +0.03
Metallurgical coke, Aug 23
Seaborne
% CSR Platts symbol $/mt Chg % Chg
FOB North China 66/65 MCCNC00 377.00 +10.00 +2.72
CFR India 66/65 MCCNI00 394.00 +10.00 +2.60
FOB North China 62 AAWVL00 368.00 +10.00 +2.79
CFR India 62 MCCEI00 385.00 +10.00 +2.67
Domestic
Yuan/mt
DDP North China (weekly) 62 AAWVJ00 2520.00 +70.00 +2.86
$/mt
FOB North China equivalent (DDP weekly) 62 PLVHM04 375.82 +13.13 +3.49
Platts China PLV, met coke price differentials, Aug 23
Price spreads Platts symbol $/mt
Import-Shanxi Premium Low Vol CFR China PLVHK04 -21.79
Import-port stock Premium Low Vol CFR China PLVHL04 -5.45
62% CSR coke export-domestic FOB North China PLVHN04 -7.82
5
Coal Trader International Thursday, August 23, 2018
power generation in Europe.
European wholesale power prices have increased sharply in
August, boosting the clean dark spread — the profit margin on power
after accounting for the cost of coal and carbon allowances.
With coal emitting roughly twice the CO2 emissions of gas per
megawatt-hour, this props up utility hedging demand for carbon
allowances on the forward curve.
A southern-Europe based carbon and energy analyst said carbon
prices have confounded expectations.
“It’s absolutely stunning. Carbon is beating everyone’s expectations
month after month,” the analyst said.
“The whole energy complex is pretty strong and there seems to be
margin to gain further ground. If you add to that, that liquidity is not at
its highest levels, it’s hard to rule out further upside,” he said.
“Is it sustainable? We’ll discover that. Anything that goes up
quickly usually comes down as quickly. Carbon is not that different,”
he said.
“The fact that carbon has not dropped yet since the beginning of
the year is of course reinforcing the idea that this is a bull market. The
question still remains ‘at what price are they [financial players] willing
to sell?’ We can guess that for utilities. I think it won’t be that simple
for hedge funds,” he said.
The main driver of the carbon price gains over the last 18 months is
the upcoming Market Stability Reserve — a set-aside pool of
allowances to keep surplus volume out of the market.
The MSR was agreed by the EU Parliament and Council in late
2015 and strengthened under amended legislation which came into
force in 2018.
Starting in January, the MSR will curb the 1.655 billion mt
oversupply of allowances by 24% of the net surplus each year from
2019 to 2023, returning the market to a more balanced state after
several years of oversupply.
That will translate into an estimated cut to carbon auction supply
of about 400 million mt in 2019, or 40% down from 2018 volumes.
The latest jump in carbon prices also came in a month when
primary supply from auctions fell by almost 50% to 46.6 million mt as
governments curbed sales during the summer vacation period.
That could leave prices vulnerable to a downward correction in
September when auction volumes rebound to 82.4 million mt, and rise
further to 97.3 million mt in October.
— Frank Watson
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Seaborne coking coal prices
strengthen amid some buying interest
Singapore—Asia Pacific seaborne metallurgical coal spot prices edged
higher as buying interest continued to gradually return.
S&P Global Platts assessed Premium Low Vol coal up 75 cents to
$184.50/mt FOB Australia, while the CFR China price was up 50 cents
to $189/mt Thursday.
In the FOB market, a trade was concluded Wednesday at $202.50/
mt FOB Australia for a blended cargo of Premium Low Vol, 70-72%
CSR, 19-20% VM, Ash 10-11%, 50,000 mt, September laycan.
Another trade was concluded at $197/mt FOB Australia for
Premium Mid Vol, 67-69% CSR, 25,000 mt, September laycan.
Market participants in the Asia Pacific region said these trades
were not repeatable or representative.
One miner said the FOB market beyond Asia Pacific had been
healthy, but he did not expect traded levels to be this high.
He added that Asia Pacific participants, including Chinese traders
or steelmakers, would not consider a blended cargo of Premium Low
Vol as they require brand certainty for their coal blending purposes.
Elsewhere in Northeast Asia, a Japanese steelmaker said “market
sentiment is far from these values” referring to the traded price.
Also in India, a buyer said Indian consumers “will not be paying
these price” and the spread between a Premium Low Vol and Premium
Mid Vol should be around $3/mt — a contrast to the traded level which
suggested a spread of $5/mt.
The highest indicated bid Thursday was $180/mt FOB Australia for
Premium Mid Vol, 67-69% CSR, and the most competitive offer was
$185/mt FOB Australia for the same type of coal, 80,000 mt,
September 10-20 laycan.
In China, some buying interest was heard among steelmakers but
no urgency was showed in procuring cargoes.
The highest indicated bid was at $184/mt CFR China for a Semi
Premium blend, 67-69% CSR.
A cargo of Premium Low Vol, 71-73% CSR, Panamax volume, end
September laycan was heard offered in the market to both traders and
end-users. No trades were heard concluded.
“The market will be watching this cargo closely,” one steelmaker
said, as it may then set market expectations given the absence of
trades of first tier coking coal in the last two weeks.
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.
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

The most competitive offer was at $370/mt FOB China for Chinese
64/62% coke.
Meanwhile, Platts assessed domestic Coke 12.5% ash DDP North
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
Hard Coking Coal (Premium Low Vol)
FOB Australia Assessment Rationale
Platts assessed Premium Low-Vol HCC up 75 cents to $184.50/mt FOB Australia
Thursday. The most competitive offer was at $185/mt FOB Australia for an
Australian Premium Mid-Vol with 67-69% CSR, 80,000 mt cargo with
September 10-20 laycan. This was for a coal assessed at $2/mt discount to
Platts PLV FOB Australia. The highest bid indicated was at $180/mt FOB
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
assessment. The above rationale applies to Platts premium low vol FOB
Australia assessment, with the associated data code: PLVHA00
Hard Coking Coal (Premium Low Vol)
CFR China Assessment Rationale
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
Semi-Premium blend with 67-69% CSR, assessed at $5/mt discount to Platts
PLV CFR China. The lowest offer indicated was at $187/mt CFR China for the
same type of coal. No data was excluded from this assessment. The above
rationale applies to Platts premium low vol CFR China assessment (PLVHC00) &
TSI Prem JM25 CFR Jingtang (TS01044)
Thermal coal sellers seek alternative
markets amid bearish China demand ... from page 1
seaborne cargoes, sources said Thursday.
There were limited market activities on Thursday following a deal
heard on Monday for Australian 5,500 kcal/kg NAR thermal coal for
September-loading at $62.50/mt FOB Newcastle in either a single
Capesize cargo, or two Panamaxes, sold to a Chinese buyer.
Bids for Australian 5,500 kcal/kg NAR were heard at $60-$62/mt
FOB, while offers were at about $65/mt FOB.
Sources said that given the wide bid-offer spread, it would be
difficult for both sides to agree on a deal price.
“Chinese buyers are not too interested in looking at imports
currently because of the port restrictions,” a China-based trader said,
adding that sellers are looking at other markets such as India and
Europe as the “waiting time at Chinese ports is too long.”
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 cokingcoal@platts.com
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.
Chinese domestic prices for 5,500 kcal/kg NAR have been trending
lower this week, to be heard at Yuan 615/mt FOB Qinhuangdao,
sources noted.
Buyers are also turning to Inner Mongolia coal, which are around
Yuan 10/mt lower than FOB Qinhuangdao prices, a trader said.
Market participants expected prices to remain weak and were
mostly adopting a wait-and-watch approach.
“Prices won’t go up so soon due to high stockpiles and softer
demand,” one market source said.
Another China-based trader said he would wait for the market to
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.
Indonesian producers weighing options
Seaborne coal prices were at a similar level as Indonesian domestic
prices, said an Indonesia-based trader. This might prompt miners to
cover their domestic market obligations, taking away some of the
excess volume from the seaborne market.
However, he said: “The demand has to come back for the prices to
see some support.”
There were some prompt offers but sellers were not inclined to cut
their prices yet, he noted.
Some of the miners have shipments to offer but were holding on to
their prices, another Indonesia-based trader said, adding that miners
would have to lower their prices soon given the sluggish demand.
He was offering a Supramax shipment of 3,800 kcal/kg GAR coal at
$30.50/mt FOB for loading in September.
Bids for September-loading Panamax shipments of 3,800 kcal/kg
NAR coal were in the range of $38-$38.50/mt FOB, while an offer was
at $39/mt FOB.
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.
$38.50/mt FOB.
Panamax freight from south Kalimantan to south China was
indicated at around $7.50/mt, shipping sources said.
“There is a downtrend in the market for sure. Maybe it will continue
at least until H2 September,” said an Indonesia-based producer source.
Market participants felt the market was close to its bottom as
prices have corrected substantially in the past few weeks.
Offers for September-loading Panamax shipments of 5,000 kcal/kg
GAR coal were at $57-$57.50/mt FOB, while a bid was heard at $56-
$56.50/mt FOB.
— Arusha Das, Hui Min Lee
Platts Coal NEAT Index Daily Assessment Rationale
Singapore—The Northeast Asia Thermal coal index was assessed Thursday at
$83.72/mt CFR Kinuura, Japan, basis 5,750 kcal/kg NAR, with typical ash content
of 15% for delivery in the next 15-60 days. Platts assessed the spot price of
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.
Platts used its ash differential for this Australian thermal coal, which has a current
market value of 55 cents per 1% ash basis, to derive a price for 5,750 kcal/kg NAR
coal with 15% ash at about $69.74/mt FOB. Panamax freight from Newcastle to
Kinuura was indicated at $13.98/mt, which was added to the Newcastle 5,750
kcal/kg NAR 15% ash price. This rationale applies to symbol(s) JKTCA00
Platts Thermal Coal Indonesia
4,200 GAR Daily Rationale
Singapore—S&P Global Platts assessed the 7-45 day price of FOB Kalimantan
4,200 kcal/kg GAR coal at $37.75/mt Thursday, stable from Tuesday. Bids for
September loading Supramax shipments were at $37-$37.50/mt FOB, while an
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
applies to the FOB Kalimantan 4,200 GAR assessment, with the associated
code: CSBKI00
9
PETCOKE WEEKLY
August 23, 2018

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

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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

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 11
Coal Trader International Thursday, August 23, 2018

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