Monthly Coal U G Update

PB J. M. Baxi & Co. COAL Update | Aug 2021 Aug 2021 | J. M. Baxi & Co. COAL Update 1

Monthly Coal Update

AUG21

2 J. M. Baxi & Co. COAL Update | Aug 2021 Aug 2021 | J. M. Baxi & Co. COAL Update

2 J. M. Baxi & Co. COAL Update | Aug 2021 Aug 2021 | J. M. Baxi & Co. COAL Update 3

Port Anlaysis

COAL & COKE TRAFFIC AT INDIAN PORTS (QTY IN Metric Tonnes)

MAJOR COAL & COKE IMPORTERS (QTY IN Metric Tonnes)

MAJOR COAL & COKE ORIGIN COUNTRYWISE IMPORTS (QTY IN Metric Tonnes )

Market Overview And Trends

Highlights

Contents

Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines,

government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of

information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected

to make their own independent evaluation and verification of information for their use. While all information contained in this report

are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same

is provided only in good faith.

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PORT NAME Apr- June - 21 Apr- June - 20 VARIANCE

ANGRE 0 41000 -41000

BEDI 139000 574000 -435000

BHAVNAGAR 614021 242906 371115

DAHEJ 1791973 596212 1195761

DHAMRA 4661714 2982610 1679104

DHARAMTAR 749834 308262 441572

ENNORE 5599019 3141040 2457979

GANGAVARAM 5316243 2957045 2359198

GOPALPUR 361306 0 361306

HALDIA 3334389 2439465 894924.5

HAZIRA 3191016 820749 2370267

JAIGAD 1905980 1749493 156487

KAKINADA 486059 427651 58408

KANDLA 2942232 2531176 411056

KARAIKAL 1315039 1695057 -380018

KOLKATA 2213.62 0 2213.62

KRISHNAPATNAM 8530557 6445818 2084740

MAGDALLA 878499 723442.9 155056.1

MANGALORE 1492639 946818.9 545820.1

MORMUGAO 2305526 2286102 19424

MUMBAI 650641 431522 219119

MUNDRA 7206385 5366301 1840084

NAVLAKHI 2516824 802058 1714766

OKHA 383348 276686 106662

PARADIP 10469924 8294308 2175616

PIPAVAV 471609 322747.7 148861.3

PORBANDAR 74306 66600 7706

SALAYA 566047 823549 -257502

TUNA 2126925 1128913 998011.9

TUTICORIN 3227992 3250497 -22505

VISAKHAPATNAM 3878857 2921577 957280

Grand Total 77190118 54701749 22488369

COAL & COKE TRAFFIC AT INDIAN PORTS (QTY IN METRIC TONNES)


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IMPORTERS CARGO QTY

ADANI COAL TRDG. CORPN. COAL 75000

COKING COAL 80000

ADANI ENTERPRISES LTD. COAL 1138450

NON COKING COAL 415583

ADANI POWER LTD. STEAMING COAL 902488

AGARWAL COAL CORPN. COAL 150231

STEAMING COAL 64800

INDUSTRIAL COAL 30000

AGARWAL FUEL CORPN. STEAMING COAL 34540

ANAND CARBONS STEAMING COAL 15220

ARCELOR MITTAL NIPPON STEEL INDIA LTD. COAL 243660

MET COKE 130000

ARJAS STEEL. COAL 30000

AUROBINDO PHARMA LTD. STEAMING COAL 55000

BENGAL ENERGY CO. LTD. COAL 51521

COKING COAL 159000

BHUSAN POWER & STEEL LTD. COKING COAL 106944

PCI COAL 76744

STEAMING COAL 164976

CARBON RESOURCES LTD. COAL 47223

CHEMPLAST SANMAR LTD. COAL 73700

COASTAL GUJARAT POWER LTD. STEAMING COAL 372891

COREMAN TRADING FZ LLC COAL 75715

ELECTRO CASTING LTD. COKING COAL 49800

PCI COAL 16900

STEAMING COAL 17002

ESL STEEL CO, ANTHRACITE COAL 7002

GANDHAR OIL REFINERY INDIA LTD. COAL 53000

MAJOR COAL & COKE IMPORTERS (QTY IN METRIC TONNES) - JULY 2021


GLOBAL COAL AND MINING PVT. LTD. INDUSTRIAL COAL 57780

GLOBAL COKE PVT. LTD. R.P. COKE 57600

GOA CARBON R.P. COKE 4356

GRASIM INDUSTRIES LTD. COAL 71499

GUJARAT HEAVY CHEMICAL LTD. COAL 10681

HINDALCO INDUSTRIES LTD. PET COKE 22660

HINDUSTAN ZINC LTD. COAL 60000

INDIA CEMENTS LTD. INDUSTRIAL COAL 38180

INDIA COKE AND POWER PVT. LTD. NUT COKE 27078

INDIA COKE PVT. LTD. COKING COAL 46634

JAI BALAJI INDUSTRIES LTD COKING COAL 31500

JAYASWAL COKING COAL 54256

JINDAL STEEL AND POWER LTD. COKING COAL 944098

PCI COAL 143589


JINDAL STEEL WORKS LTD. COAL 51500


KALYANI STEEL LTD. MET COKE 22000

KIRLOSKAR BROTHERS COAL 15315

KIRLOSKAR FARREOUS INDUS. LTD. COAL 18000

KREMER GENERAL TRADING LLC INDUSTRIAL COAL 82000

MOHIT MINERALS PVT. LTD. COAL 41271

STEAMING COAL 13019

NAYARA ENERGY LTD. (ESSAR OIL LTD.) COAL 161757

NIRMA LTD. COAL 124233

NYDEL RESOURCES PVT. LTD. STEAMING COAL 52000

OPG POWER GENERATION PVT. LTD. STEAMING COAL 146052

ORISSA METALIKS PVT. LTD. COAL 163166

COKING COAL 143779

MET COKE 22000

STEAMING COAL 73332

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PETRO CARBON CO. LTD. R.P. COKE 10624

RAIN CALCINING LTD. PET COKE 119148

RASHTRIYA ISPAT NIGAM LTD. COKING COAL 549381


RAWMET CO. STEAMING COAL 25784

RAWMET COMMODDITIES PVT. LTD. COKING COAL 117368

RELIANCE INDUS. LTD. COAL 75000

RSPL LTD. COAL 45000

SANDUR POWER CO. PVT. LTD. COAL 24000

SANVIRA INDUS. LTD., PET COKE 25000

SEMBCORP ENERGY INDIA LTD. COAL 211067


SHREE CEMENT LTD. COAL 121000

SMIT SINGAPORE PTE LTD. STEAMING COAL 60000

SRI KALAHASTI PIPES COAL 45662

STEEL AUTHORITY OF INDIA LTD. COKING COAL 1064782

PCI COAL 62271

SUNFLAG IRON AND STEEL CO. LTD. COAL 14272

SURYADED ALLOYS AND POWER PVT. LTD. STEAMING COAL 82500

SWISS SINGAPORE INDIA PVT. LTD. STEAMING COAL 100621

TAMILNADU NEWSPRINT AND PAPERS LTD. INDUSTRIAL COAL 63800

TATA METALLICKS LTD. ANTHRACITE COAL 6800

COKING COAL 27500

TATA POWER CO. LTD. COAL 100500

TATA STEEL BSL LTD. COKING COAL 89500

STEAM NON COKING 164310

TATA STEEL LTD. ANTHRACITE COAL 20000

COAL 161894

COKING COAL 552790

NUT COKE 27431

PCI COAL 163420

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TORRENT POWER LTD. COAL 78750

TRAFIGURA INDIA PVT. LTD. COAL 79022

TURNREST RESOURCES PVT. LTD. COAL 72830

ULTRATECH CEMENT LTD. COAL 72278


PET COKE 55000

V.R. PETROCHEM INDUSTRIAL COAL 30250

VEDANTA ALUMINIUM LTD. CALCINED PET COKE 15631

COAL 60500

VEDANTA LTD. SEZ UNIT CALCINED PET COKE 28150

COKING COAL 161273

VISA MINMATE LTD. COKING COAL 48930

STEAMING COAL 77381

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COUNTRIES CARGO QTY

ARGENTINA PET COKE 25000

AUSTRALIA COAL 868710

COKING COAL 3116606


PCI COAL 477724


THERMAL COAL 34406

CANADA COKING COAL 73215

PET COKE 43997

CHINA CALCINED PET COKE 28150

COAL 323699

COKING COAL 56868


PET COKE 22660

COLOMBIA NUT COKE 54509

EGYPT ANTHRACITE COAL 20000

GEORGIA PET COKE 20600

INDONESIA COAL 1293652

COKING COAL 85230


R.P. COKE 16624


JAPAN COAL 75310

MET COKE 44000

KUWAIT PET COKE 27493

R.P. COKE 18000

MAJOR COAL & COKE ORIGIN COUNTRYWISE IMPORTS (QTY IN METRIC TONNES) - JULY 2021

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MALAYSIA R.P. COKE 8600

MOZAMBIQUE COAL 121000

COKING COAL 121369


OMAN R.P. COKE 25000

PHILIPPINES STEAMING COAL 55000

POLAND MET COKE 130000

RUSSIA ANTHRACITE COAL 13802

COAL 117904

COKING COAL 183779

PCI COAL 65000


SAUDI ARABIA PET COKE 55000

SOUTH AFRICA COAL 594704


STEAM NON COKING COAL 164310


U.A.E. CALCINED PET COKE 15631

UNITED STATES COAL 101367.91

COKING COAL 67553


PET COKE 27058


VIETNAM COAL 60500

VIRGINIA COKING COAL 30000


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HIGHLIGHTS

Coal India’s sustained volume performance trigger hopes of better prospects

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India, Russia to cooperate on coking coal

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Decommissioning coal power plants older than 25 yrs can save Rs 37,000 crore

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Punjab’s Talwandi Sabo plant to get high-grade coal from CIL

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China’s coking coal imports rebound in June

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Decommissioning coal power plants older than 25 years on priority could result in total savings of Rs 37,750 crore, a study by Council on Energy, Environment and Water (CEEW) said. Besides, an another study by CEEW suggested that power distribution utilities or discoms in India could save up to Rs 9,000 crore (USD 1.23billion) each year by prioritising coal power despatch based on efficiency rather than the prevailing system which prioritises based on variable costs. According to a study released by CEEW on Monday, this move can provide much needed respite to public discoms, which last reported a loss of Rs 61,360 crore (USD 8.4 billion) in FY’19. The findings are based on the performance of 194 GW of Indian coal assets (out of a total capacity of nearly 205 GW) during the 30 months preceding the COVID-19 pandemic. Further, the study found that prioritising efficiency-based despatch during this time could have improved coal fleet efficiency by 1.9 per cent, resulting in annual coal savings of 42 million tonnes (MT) and a commensurate reduction in greenhouse gas emissions. The CEEW study also recommends considering 30 GW of India’s coal-based (power generation) capacity for accelerated decommissioning. The proposed plants overlap with those identified for retirement in the National Electricity Plan (NEP), 2018 the NEP list. Factoring in planned renewables and coal capacity, relegating these newer plants would not adversely affect supply at a system level. In fact, it stated that relegating these inefficient plants would additionally result in a one-time saving of Rs 10,000 crore (USD 1.37 billion) on

account of avoided pollution control retrofits. Further, the study advocates for a unified electricity market that treats the whole country as a single dispatch region. Its findings reinforce the Central Electricity Regulatory Commission’s (CERC) proposal to move away from bilateral scheduling of generation and focus on shifting to market-based economic dispatch (MBED). Decommissioning identified assets will usher in new investments in a more balanced generation system that does not have the sword of surplus hanging over it. A second independent study released today by the CEEW Centre for Energy Finance (CEF) separately examined 130 plants representing 95 GW of India’s coal-based capacity. It found that decommissioning coal assets older than 25 years (35 GW of total capacity) on priority could result in annual savings of Rs 7,550 crore (USD 1.03 billion) over the next 5 years. These savings would be generated through avoided annual capacity or fixed-charge payouts, primarily towards operation and maintenance costs. Further, the savings would add up to a total of Rs 37,750 crore (USD 5.2 billion) over the plants remaining life. On the other hand, the decommissioning of these assets would cost Rs 21,500 crore (USD 2.9 billion) in payouts to debt and equity holders and an additional Rs 11,700 crore (USD 1.6 billion) in compensatory payouts to the workforce. This suggests that decommissioning will pay for itself over a five to six-year period, it added. The CEEW-CEF study does not endorse large-scale decommissioning, it found that retiring 95 GW of capacity could cost between Rs 2.3 lakh crore and 3.5 lakh

Decommissioning coal power plants older than 25 yrs can save Rs 37,000 crore01

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According to a study released by CEEW on Monday, this move can provide much needed respite to public discoms, which last reported a loss of Rs 61,360 crore (USD 8.4 billion) in FY’19

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crore (USD 32 to 48 billion) to pay off debt and equity holders. Payoffs to the workforce costs could add another Rs 57,490 crore (USD 7.8 billion). The study also highlighted that freeing up capital through decommissioning will require innovative financial mechanisms. Once unlocked, these resources could be made available for India’s transition to renewables.

The CEEW study ‘Coal Power’s Trilemma: Variable Cost, Efficiency and Financial Solvency’ can be accessed here and the CEEW-CEF study ‘Mapping Costs for Early Coal Decommissioning in India’ can be accessed here. The CEEW is one of Asia’s leading not-for-profit policy research institutions.

Coal India’s sustained volume performance trigger hopes of better prospects02For Coal India Ltd, better volumes in June trigger hopes of improved prospects going ahead. Provisional figures reported by the company for June indicated a 2% year-on-year improvement in production and 23% improvement in offtake. For the June quarter, the company’s production volumes grew 2.4% and offtake improved 32.7%. Though the higher offtake comes on a low base of last year, there is optimism that the recovery in power demand and economic activities may help the company improve its performance going forward. “The company’s Q1FY22 volume at 160.4mt (million tonne) is the highest ever for the first quarter and is enough to meet our FY22 estimated offtake of 614mt,” said analysts at Edelweiss Securities Ltd. Besides, “pick up in power sector volume-up 38% YoY-in 2Months FY22, higher e-auction premium and reducing receivables are likely to aid cash accretion”, they added. The company supplies a larger portion of its produce under the fuel supply agreement (FSA) to the power sector. Besides, higher demand from the power sector helps improve the

company’s e-auction realisations too. Analysts are of the view that production continues to be rationalised to reduce pithead inventory. On the positive side, inventory at 60 mt fell 38% compared to March 2021, as per analyst’s data. Rising international coal prices are also likely to support domestic demand moving forward, curbing cheap imports. Import prices for Indonesian-origin thermal coal, primarily consumed in the power sector, continued to increase 9% month on month up to end-June 2021, India Ratings and Research said in a note. This is being led by production and supply disruptions due to heavy rainfall, relaxed Chinese import quota for June 2021 and re-stocking requirements ahead of the monsoon season. South Africa-origin thermal coal prices, primarily used in sponge iron manufacturing in the steel sector, also increased by 9-11% sequentially at the end of June 2021. This is also due to continued supply disruptions in the transportation services to the Richards Bay Coal Terminal in South Africa amid stricter lockdowns post rising infections, limited cargo availability, limited stocks on Indian

Though higher offtake comes

on a low base of last year, there is optimism that the recovery in power demand and economic

activities may help the

company improve its

performance going forward

Source: Economic Times


Source: Livemint

Source: ArgusMedia

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India’s crude steel output rose to 8.52mn t in May, up by 3pc from April and by 36pc from May 2020.

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India, Russia to cooperate on coking coal

China’s coking coal imports rebound in June

India and Russia have agreed to a cooperation on coking coal, a move that will “benefit the entire steel sector by reducing their input cost”, the Indian government said on 14 July. “The activities involved in the cooperation are aimed at diversifying the source of coking coal,” the Indian government said but did not provide further specifics on the nature of the cooperation. India’s coking coal imports stood at 25.05mn t in January-May, up by 36pc on the year, with domestic steel production recovering from the effects of Covid-19 last year.

China imported 4.13mn t of coking coal in June, down by 34pc from a year earlier but up by 21pc from May, according to Chinese customs data. January-June imports fell by 42pc on the year to 22.28mn t. China has banned coal imports from Australia since October, and there has been no

ports and a sustained high Chinese demand. All this may help curb cheap imports and boost Coal India’s volumes and realisations moving forward. The Street thereby will be watchful on the same and also on

Import volumes retreated in May on high fob Australia metallurgical coal prices and sporadic lockdowns in India from the second Covid-19 wave that hit the country towards the end of March. The Argus premium low-volatile hard coking coal index stood at $210.35/t on 15 July, compared with $109.80/t on 16 July 2020. India imported 76,000t of coking coal from Russia in May, up by 125pc on the year. January-May imports from Russia stood at 468,000t, up by 10pc on the year.

Australian import since December. US imports rose by nearly threefold to 938,000t in June on the year, 4pc lower than the record 974,700t in April. Canadian imports in June more than doubled to 888,179t from a year earlier, below the record 1.2mn t in March. Major Chinese traders

sustained volume performance during the monsoon season. The stock is up 18% from its April lows, and sustained volume performance, as well as an uptick in realisations, holds the key for earnings improvement.

03

04


03

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Punjab’s Talwandi Sabo plant to get high-grade coal from CIL

scrambled to take positions on non-Australian premium coals on supply shortages in China as Mongolian and domestic supplies remained tight. The Argus premium low-volatile hard coking coal price delivered on a cfr China basis hit a fresh four-year high of $305/t on 30 June, up by 11pc from a month earlier. The Argus premium low-volatile hard coking coal price on a fob Australia basis rose by 25pc to $189/t over the same period. Russian imports almost doubled to a six-

The 1,980 mega-watt (MW) Talwandi Sabo power plant is expecting high-quality low-ash coal supply from Coal India (CIL) in the coming weeks. The power plant, owned by Vedanta, had attributed restrictions on coal import imposed by the Centre as one of the major reasons for the frequent breakdown of its units, as it increased the dependence on domestic coal which has high ash content. Under fuel supply agreement with CIL, the generating station has been lifting coal from Mahanadi Coalfields (MCL) since FY15. “The plant has been allocated higher grades of coal from Eastern Coalfields (ECL) under import substitution,” CIL told FE. The fuel from MCL are of lower grades with calorific value between 3,400 – 4,000 kilo calorie per kilogram (kcal/kg), while coal from ECL mines mostly have higher calorific value between 6,100 – 6,700 kcal/kg. After all the

month high of 1.16mn t in June from a year earlier. Major Russian producers took advantage of stronger cfr China prices and prioritised spot volumes into China. Mongolian arrivals increased by 6pc to 846,000t in June from May, but struggled to exceed 1mn t for a third month. This came as the resurgence of Covid cases in some South Gobi districts compelled stricter border checks from late June, limiting the daily crossing of coal trucks.

three units of the plant — which is the largest source of power in Punjab — broke down, the state government had to impose restrictions of its industrial consumers, permitting them to draw only 50% of power capacity allocated to them from July 8. However, with one of the 660 MW units coming back online, and the recent rains lowering electricity demand, the restrictions have been lifted. The Talwandi Sabo power plant had imported 894 thousand tonne of high quality coal for blending with domestic fuel in FY20, but has not imported any coal since the start of FY21. “As a part of Atmanirbhar Bharat, Central government asked not to import coal and assured of low ash import substitute coal from coal mines in India,” a spokesperson of Vedanta’s Talwandi Sabo Power said. Though the government had asked thermal power plants to reduce coal

05

Source: ArgusMedia

China’s coking coal imports rebounded in June on accelerated seaborne trade as trading firms bought cargoes on tighter domestic supply

The fuel from MCL are of lower grades with calorific value between 3,400 – 4,000 kilo calorie per kilogram (kcal/kg), while coal from ECL mines mostly have higher calorific value between 6,100 – 6,700 kcal/kg.

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imports, a sector expert requesting anonymity pointed out that “there is no ban per se on coal imports, and plants are free to source the fuel from outside if need arises”. The Talwandi Sabo plant is not coal strapped and

as on July 11, had 28 days of stock of the fuel. However, it was the quality of the fuel and not the quantity which the company had problems with.

Source: Financial Express


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Monthly Coal U G Update

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