COAL TRADER INTERNATIONAL

Volume 19 / Issue 36 / Wednesday, February 20, 2019

Glencore limiting coal output seen Daily prompt physical thermal coal assessments, Feb 20

boosting FOB Newcastle prices CV (kcal/kg) Window Platts symbol $/mt Chg
North East Asia
■■Announcement could boost falling Australian export price NEAT Coal Index 5,750 NAR 15-60 day JKTCA00 77.86 +0.01
■■Global markets show some bullish intraday movements
Atlantic

London—Coal market participants expect mining and trading company CIF ARA 6,000 NAR 15-60 day CSARM01 72.80 +2.25

Glencore’s announcement Wednesday that it is to limit coal production FOB Richards Bay 5,500 NAR 7-45 day AAXEX00 61.90 +0.50

to current levels to have a bullish effect on export prices out of Australia.
The company has a large foothold in Australia, and high calorific
value coal supply is already limited against the backdrop of growing
Asian demand.
“We aim to prioritize capital investment to grow production of
commodities essential to the energy and mobility transition and limit
(continued on page 11)
News Headlines
Optimism of Kalimantan demand, but fears
of Chinese import restrictions linger
■■North China ports lower import quota: sources
■■Indonesian low-CV coal prices continue uptrend
European thermal coal market remains
Australia
FOB Newcastle 20% Ash 5,500 NAR 7-45 day AAVUW00 61.60 -0.20
FOB Newcastle 23% Ash 5,500 NAR 7-45 day AAVVB00 60.00 -0.20
FOB Newcastle Ash Differential AAVVA00 0.52
FOB Newcastle 6,300 GAR 7-45 day CSNCB00 89.90 +0.65
Indonesia
FOB Kalimantan (Geared Supramax) 4,200 GAR 7-45 day CSBKI00 37.00 +0.50
FOB Kalimantan (Geared Supramax) 3,800 GAR 7-45 day CSCKJ00 29.10 +0.20
FOB Kalimantan (Geared Supramax) 5,900 GAR 90-day CSAKH00 71.50 +0.10
FOB Kalimantan (Geared Supramax) 5,000 GAR 90-day CSAKI00 55.50 +0.20
India
CFR India West (Gearless Panamax) 5,500 NAR 30-60 day CIWCI00 72.10 +0.55
CFR India West (Gearless Panamax) 5,000 GAR 30-60 day TCAKP00 64.05 +0.30
CFR India West (Gearless Panamax) 4,200 GAR 30-60 day TCAKT00 45.55 +0.60

bearish in near term despite price rise CFR India West (Geared Supramax) 3,800 GAR 30-60 day TCAKR00 40.60 +1.95
CFR India East (Gearless Panamax) 5,500 NAR 30-60 day CIECI00 72.30 +0.55
■■Near term demand for spot coal viewed as weak
CFR India East (Gearless Panamax) 5,000 GAR 30-60 day TCAKJ00 63.30 +0.30
■■Futures supported by late oil rally
CFR India East (Gearless Panamax) 4,200 GAR 30-60 day TCAKU00 44.80 +0.60
Two units at Taiwanese coal-fired plant CFR India East (Geared Supramax) 3,800 GAR 30-60 day TCAKS00 39.00 +1.95

face six-month closure: sources CV (kcal/kg) Window Platts symbol $/mt Chg
■■Two units have combined capacity of 1.1 GW China
■■Sources see move as bearish for seaborne market PCC 1 (FOB Qinhuangdao) 5,500 NAR 7-45 day PCCQH00 90.10* +0.60
PCC 2 (FOB Qinhuangdao) 5,000 NAR 7-45 day PCCPN00 78.75* +0.53
NEAT vs CIF ARA BASIS 5,750 kcal/kg PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPQ00 43.50 +0.40
($/mt) PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPP00 62.20 0.00
110 PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSC00 68.25 0.00

100 Yuan/mt
PCC 1 (FOB Qinhuangdao) 5,500 NAR 7-45 day PCCQG00 603.00* 0.00
90 PCC 2 (FOB Qinhuangdao) 5,000 NAR 7-45 day PCCPM00 527.00* 0.00
NEAT
ARA PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPR00 291.12 +0.73
80
PCC 6 (VAT included) 3,800 NAR 30-60 day PCCPS00 337.70 +0.85
PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPO00 416.26 -2.82
70
PCC 7 (VAT included) 4,700 NAR 30-60 day PCCFB00 482.86 -3.27

60 PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSD00 456.75 -3.09
Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 PCC 8 (Duty & VAT included) 5,500 NAR 15-60 day PCCFA00 529.83 -3.58

Source: S&P Global Platts *Includes VAT

www.platts.com www.twitter.com/PlattsCoal
Coal Trader International Wednesday, February 20, 2019

Optimism of Kalimantan demand, but fears
of Chinese import restrictions linger
■■North China ports lower import quota: sources
■■Indonesian low-CV coal prices continue uptrend
■■Newcastle 5,500 NAR market moves lower
Singapore—Port restrictions in China for imported thermal coal
cargoes continued to cast a dark cloud over the Chinese seaborne
market, while bullishness on Indonesian coal persists, market sources
said Wednesday.
Sources in China said a meeting of Chinese port officials, held
Wednesday near Dalian port, decided that only cargoes from Indonesia
and Russia would be allowed into five northern ports, namely, Dalian
Bay, Bayu Quan, Panmian Port, Dandong, and Beiliang Port.
Total import volume this year at the five ports would be set at 12
million mt, sources familiar with the matter said.
“This is a drop from 19 million mt last year,” a source said.
“We imported 1 million mt of coal at Panmian Port, and this year the
quota for that port is set at 750,000 mt,” he added.
Another China-based source said Australian cargoes could not be
discharged in Fujian and Guangzhou ports. Indonesian cargoes had not
been affected so far, sources said.
Trade slows for Newcastle high ash
Current import curbs had impacted Chinese buying interest for
Australian 5,500 kcal/kg NAR cargoes, with very few firm bids heard in
the market.
One market source pegged the current market level of Newcastle
5,500 kcal/kg NAR thermal coal for loading in March or early April at
$59-$60/mt FOB. An offer for this grade was heard at $61/mt FOB
Newcastle for a March-loading Capesize cargo.
Weekly prompt physical thermal coal prices, Feb 15
Code CV Basis Sulfur $/mt Chg
(kcal/kg)
CIF Turkey CTCMT04 6,000 NAR 0.8% 85.00 -1.00
FOB Colombia CSABZ00 6,000 NAR 0.8% 71.00 -2.00
FOB Russia Baltic CSAKC00 6,000 NAR 0.5% 66.55 -1.00
FOB Russia Pacific CSAKG00 6,300 GAR 0.3% 92.00 -3.00
FOB USEC Baltimore CUAAA04 6,944 NAR 2.6% 74.00 -1.00
FOB USEC Hampton Roads CUABA04 6,667 NAR 1.0% 93.65 +0.15
FOB USGC New Orleans CUACA04 6,111 NAR 2.9% 55.00 -2.04
Normalized
FOB USEC Baltimore CUADA04 6,000 NAR 63.94 -0.86
FOB USEC Hampton Roads CUAEA04 6,000 NAR 84.28 +0.13
FOB USGC New Orleans CUAFA04 6,000 NAR 54.00 -2.00
Platts physical thermal coal netbacks, Feb 20
Code CV Basis Sulfur $/mt Chg
(kcal/kg)
Coal ($/mt)
CIF ARA CSARM01 6,000 NAR 1.0% 72.80 +2.25
NEAT Coal Index JKTCA00 5,750 NAR 1.0% 77.86 +0.01
CFR India West CIWCI00 5,500 NAR 0.8% 72.10 +0.55
Panamax Freight ($/mt)
USEC-Rotterdam CDBUR00 8.25 0.00
Mobile-Rotterdam CDMAR00 11.25 0.00
Roberts Bank-Japan CDRBK00 12.45 +0.10
Richards Bay-India West CSAKL00 10.70 +0.10
Penalties & Premia ($/mt)
Per 0.1% Sulfur (USGC) COPAP00 0.42 +0.16
Total S discount (USGC) COPBP00 7.98 +3.04
Netbacks ($/st)
FOB US East Coast* COUSC00 12,500 GAR 1.0% 65.07 +2.27
FOB US Gulf Coast* COUGU00 11,500 GAR 2.9% 49.63 -0.68
FOB Vancouver* COVCU00 8,800 GAR 0.8% 47.58 -0.07
Netbacks ($/mt)
FOB Richards Bay CSEUW00 6,000 NAR 0.8% 70.10 +0.49
* CV = Btu/lb

GLOBAL COAL PHYSICAL PRICE SNAPSHOT, FEBRUARY 20

$/mt, kcal/kg)

FOB Baltic Russia 6,000 NAR* 66.55

CIF ARA 6,000 NAR 72.80

FOB Baltimore 6,000 NAR * 63.94 CIF Turkey 6,000 NAR* 85.00
NEAT Coal Index 5,750 NAR 77.86
FOB Hampton Roads 6,000 NAR* 84.28
FOB New Orleans 6,000 NAR * 54.00 PCC 1 (FOB Qinhuangdao) 5,500 NAR 90.10
CFR India East 5,500 NAR 72.30
PCC 8 (CFR South China) 5,500 NAR 68.25
CFR India West 5,500 NAR 72.10
CFR India East 4,200 GAR 44.80
CFR India West 4,200 GAR 45.55

FOB Colombia 6,000 NAR* 71.00

FOB Kalimantan 4,200 GAR 37.00

FOB Richards Bay 5,500 NAR 61.90 FOB Newcastle 5,500 NAR 61.60
FOB Richards Bay 6,000 NAR 70.10 FOB Newcastle 6,300 GAR 89.90

* Weekly price, assessed Fridays

Source: S&P Global Platts

© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 2
Coal Trader International Wednesday, February 20, 2019

Extensive hold-ups are affecting coal cargoes at Chinese ports,
with delays estimated at up to 60 days for some vessels, including
Australian cargoes.
A total of 61 ships carrying coal were listed as stationary off China’s
southern coast on Wednesday, according to Platts vessel tracking
software cFlow.
They include the 180,000-dwt Capesize ship Cape Venture which
has been waiting in the Hong Kong regional vessel queue since
February 11 after sailing from Newcastle port on January 26.
The Newseas Jasper, a 57,000 mt-ship that loaded Russian coal at
Vanino port in Far Eastern Russia on February 18, was waiting in the
offshore queue for Ningbo/Zhoushan port, cFlow reported.
Lower freight
Vessel freight rates for Newcastle shipments to Northeast Asia
have declined by almost $1 over the past week, bringing delivered
prices lower with them.
A Capesize ship for 125,000 dwt was fixed at $6.97/mt to sail from
from Newcastle to South Korea’s Hadong port in H1 March, shipping
sources said.
This fixture is lower than the last one heard on the Newcastle to
South Korea trading route a week ago, at $7.70/mt, that was for a
Spot dry bulk freight assessments, Feb 20
Platts symbol $/mt Chg
Capesize
Australia-China CDANC00 6.10 -0.30
Queensland-Japan CIGAJ00 6.70 -0.35
New South Wales-Korea CINAK00 7.55 -0.35
Bolivar-Rotterdam CIBCR00 6.85 -0.15
Roberts Bank-Japan CDRKJ00 8.50 -0.30
Richards Bay-Rotterdam CIRBN00 5.50 -0.15
Panamax
Richards Bay-India West CSAKL00 10.70 +0.10
Kalimantan-India West CSAKP00 7.80 +0.10
Richards Bay-India East CSAKN00 10.75 +0.10
Kalimantan-India East CSAKR00 6.50 +0.10
Richards Bay-Rotterdam CIRRN00 9.50 +0.25
Richards Bay-Spanish Med CIRBT00 9.00 +0.25
Richards Bay-Jorf Lasfar CIRBJ00 8.75 +0.25
Bolivar-Rotterdam CIBRN00 10.25 0.00
USEC-India CDBUI00 27.00 0.00
USEC-Rotterdam CDBUR00 8.25 0.00
USEC-Brazil CDBUB00 8.00 0.00
Mobile-Rotterdam CDMAR00 11.25 0.00
Mobile-Taranto CDMAI00 9.75 0.00
Roberts Bank-Japan CDRBK00 12.45 +0.10
Australia-China CDBFA00 10.45 +0.20
Australia-India CDBFAI0 11.60 +0.15

130,000 dwt ship loading in H2 February.

Chinese domestic prices were stable after breaching the Yuan 600/
mt level in the past two days.
Buying activity resumed lately as stock level for cement factories
kicked off restocking activities, a Chinese source said.
Low CV prices on uptrend
In contrast to the slow trades for Australian cargoes, market
participants foresee a bullish price trend for Kalimantan low calorific
value thermal coal amid persistent supply tightness and rising bids.
A Singapore-based trader said low CV thermal coal prices are on an
uptrend with higher day-on-day bids and supply tightness for
Kalimantan March cargoes.
“The recent demand for 4,200 kcal/kg GAR material is primarily
driven by supply shortage without fundamental demand,” another

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Volume 19 / Issue 36 / February 20, 2019 Ewout Steenbergen, Executive Vice President, Chief Financial Officer;
ISSN: 1746-8914 Steve Kemps, Executive Vice President, General Counsel
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Coal Trader International Wednesday, February 20, 2019

Recent heards in the thermal coal market

Date Heard type Product (kcal/kg) Price (per mt) Volume size Delivery period Source Additional
reported (mt) Notes

20-Feb Trade FOB Richards Bay 6000 NAR $76.25 50,000 March globalCOAL
20-Feb Bid FOB Richards Bay 6000 NAR $76.25 50,000 March globalCOAL
20-Feb Offer FOB Richards Bay 6000 NAR $78 50,000 March globalCOAL
20-Feb Offer FOB Richards Bay 6000 NAR $83.75 50,000 April globalCOAL
20-Feb Bid FOB Richards Bay 6000 NAR $82 50,000 April globalCOAL
20-Feb Bid CIF ARA 6000 NAR $74.25 50,000 April Braemar
20-Feb Offer CIF ARA 6000 NAR $73.5 50,000 April Braemar
20-Feb Offer CIF ARA 6000 NAR $72.5 50,000 March Braemar
20-Feb Bid CIF ARA 6000 NAR $72.75 50,000 March Braemar
20-Feb Bid FOB Newcastle 5500 NAR $59 130,000 March-April Market Capesize
20-Feb Offer FOB Newcastle 5500 NAR $61 130,000 March Market Capesize
20-Feb Bid FOB Kalimantan 3800 NAR $37 55,000 March Trader Supramax
20-Feb Bid/Offer FOB Kalimantan 3800 NAR $36.50 vs 37.50-38 55,000 March Trader Supramax
20-Feb Bid FOB Kalimantan 4000 NAR $42-43 55,000 March Producer Supramax
20-Feb Trade FOB Kalimantan 4100 GAR $36.5 55,000 March Producer Geared vessel
20-Feb Bid FOB Kalimantan 4200 GAR $37.5 55,000 March Producer Supramax
20-Feb Trade FOB Kalimantan 4200 GAR $36.5 55,000 March Trader Supramax
20-Feb Offer FOB Kalimantan 4800 GAR $59 75,000 March Trader Panamax
20-Feb Offer FOB Kalimantan 5300 GAR $62.5 75,000 March Trader Panamax
19-Feb Bid CIF ARA 6000 NAR $74 50,000 April globalCOAL Colombia, S Africa
origin only
19-Feb Bid FOB Richards Bay 6000 NAR $75.5 50,000 March globalCOAL
19-Feb Offer FOB Richards Bay 6000 NAR $76.5 50,000 March globalCOAL
19-Feb Bid FOB Richards Bay 6000 NAR $80.5 50,000 April globalCOAL
19-Feb Offer FOB Richards Bay 6000 NAR $82.75 50,000 April globalCOAL
19-Feb Bid CIF ARA 6000 NAR $70.5 50,000 March Braemar
19-Feb Offer CIF ARA 6000 NAR $70.5 50,000 March Braemar
19-Feb Bid CIF ARA 6000 NAR $72.25 50,000 April Braemar
19-Feb Offer CIF ARA 6000 NAR $71.75 50,000 April Braemar
19-Feb Offer FOB Richards Bay 6000 NAR $83 50,000 April globalCOAL
19-Feb Bid FOB Richards Bay 6000 NAR $76 50,000 March globalCOAL
19-Feb Bid FOB Richards Bay 6000 NAR $81.5 50,000 April globalCOAL
19-Feb Offer FOB Qinhuangdao 5500 NAR Yuan605-610 Unknown Spot cargo Trader
19-Feb Offer FOB Qinhuangdao 5500 NAR Yuan605 Unknown Spot cargo Trader
19-Feb Offer FOB Qinhuangdao 5000 NAR Yuan530 Unknown Spot cargo Trader
19-Feb Trade FOB Kalimantan 3400 NAR $28.7 55,000 March Trader Supramax,
last week
19-Feb Offer FOB Kalimantan 3700 NAR $38-38.50 55,000 March Trader Supramax
19-Feb Offer FOB Kalimantan 3800 NAR $37.5 75,000 March Trader Gearless vessel
19-Feb Trade FOB Kalimantan 4000 GAR $34 50,000 March Producer Supramax
19-Feb Bid FOB Kalimantan 4200 GAR $36 55,000 March Trader Supramax
19-Feb Bid FOB Kalimantan 4200 GAR $37 55,000 March Trader Supramax
19-Feb Bid FOB Kalimantan 4200 GAR $36-36.50 55,000 March Trader Supramax
19-Feb Bid/Offer FOB Kalimantan 4200 GAR $36.50 vs 38-38.50 55,000 March Trader Supramax
19-Feb Offer FOB Kalimantan 5000 GAR $56 55,000 March Trader Supramax
19-Feb Trade FOB Kalimantan 5100 GAR $52 50,000 March Producer Supramax, 3%
sulfur
18-Feb Trade FOB Richards Bay 6000 NAR $82.5 50,000 April globalCOAL
18-Feb Bid FOB Richards Bay 6000 NAR $76.1 50,000 March globalCOAL
18-Feb Offer CIF ARA 6000 NAR $72 50,000 March Braemar
18-Feb Bid CIF ARA 6000 NAR $74.25 50,000 April Braemar
18-Feb Offer CIF ARA 6000 NAR $73.5 50,000 April Braemar
18-Feb Offer FOB Richards Bay 6000 NAR $76.75 50,000 March globalCOAL
18-Feb Bid FOB Richards Bay 6000 NAR $82.5 50,000 April globalCOAL
18-Feb Offer FOB Richards Bay 6000 NAR $83 50,000 April globalCOAL
18-Feb Offer FOB Newcastle 5500 NAR $62 130,000 March Market Capesize

© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 4
Coal Trader International Wednesday, February 20, 2019
Singapore-based trader said.
He added that he thinks the current price rally will subside in a few
weeks’ time.
Indian sentiment
A north India-based trader sees sentiment for the Indian market as
bullish, and added that “prices will continue to rise.”
He heard an unconfirmed trade for a Supramax cargo of Indonesian
4,200 kcal/kg GAR Indonesian thermal coal concluded yesterday at
$36.50/mt FOB Kalimantan for March.
Offers for Supramax cargoes of Indonesian 4,200 kcal/kg GAR coal
were heard at $37.50-$38/mt FOB Kalimantan.
A Singapore-based trader said he heard Indian bids for Supramax
cargoes of Indonesian 4,200 kcal/kg GAR coal at about $36.50-$37/mt
FOB Kalimantan, about the same price as Chinese bids.
An East Kalimantan miner said he is committed till May with
cargoes fully sold out.
“We are anticipating a stronger demand coming from India for its
election in May,” he added, “that could be a major economy driver.”
— Michael Cooper, Hui Min Lee, Fred Wang, Jenny Ma
Platts Thermal Coal Indonesia Daily Rationale
Singapore—S&P Global Platts assessed the 7-45 day price of FOB Kalimantan
4,200 kcal/kg GAR coal at $37/mt Wednesday, up 50 cents day on day. Offers
were heard at $37.50-$38/mt FOB for March-loading Supramax shipments,
while bids were heard at $36.50-$37/mt FOB. An unconfirmed trade at $36.50/
mt FOB and a tentative bid at $37.50/mt FOB were excluded from the
assessment. The above rationale applies to the FOB Kalimantan 4,200 GAR
assessment, with the associated code: CSBKI00
European thermal coal market remains
bearish in near term despite price rise
■■Near term demand for spot coal viewed as weak
■■Futures supported by late oil rally
London—Delivered-Europe thermal coal prices rose Wednesday
despite near term demand remaining relatively poor, while an oil-led
rise in the European energy complex in the late afternoon added
further support to prices.
Russian coal was unsurprisingly reported as the main source of
oversupply serving the market, particularly due to the current pricing
environment keeping any additional flows from the US, Colombia or
South Africa unlikely.
No spot deals were reported Wednesday, and S&P Global Platts
assessed the CIF ARA 6,000 kcal/kg NAR physical price at $72.80/mt,
up $2.25 on the day.
Sources said there was not much significance to the upward
movement, as the CIF ARA price had been on a downtrend so far in
2019, and Wednesday’s movement was not expected to be the start of
a reversal.
The overall sentiment in the market was still bearish, as it had
been for several weeks now, owing to perceived oversupply of coal in
Europe and expected mild temperatures which may result into lower
coal burn demand.
© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Thermal coal forward curves, Feb 20
Bid Ask Midpoint* Platts symbol Change* % Change
CIF ARA 6,000 NAR
Mar-19 74.35 74.65 74.50 CSAM001 +1.50 +2.05
Apr-19 75.35 75.65 75.50 CSAM002 +1.50 +2.03
Q2-19 76.25 76.55 76.40 CSAQ001 +1.40 +1.87
Q3-19 78.40 78.70 78.55 CSAQ002 +1.30 +1.68
Q4-19 80.55 80.85 80.70 CSAQ003 +1.25 +1.57
Q1-20 80.70 81.00 80.85 CSAQ004 +1.50 +1.89
2020 80.00 80.30 80.15 CSAY001 +1.35 +1.71
2021 78.55 78.85 78.70 CSAY002 +1.15 +1.48
2022 77.85 78.15 78.00 CSAY003 +1.15 +1.50
FOB Newcastle 6,300 GAR
Mar-19 93.85 94.35 94.10 CSCM001 +0.35 +0.37
Apr-19 94.10 94.60 94.35 CSCM002 +0.25 +0.27
Q2-19 93.65 94.15 93.90 CSCQ001 +0.05 +0.05
Q3-19 92.85 93.35 93.10 CSCQ002 +0.25 +0.27
Q4-19 92.55 93.05 92.80 CSCQ003 +0.45 +0.49
Q1-20 92.20 92.70 92.45 CSCQ004 +0.45 +0.49
2020 90.10 91.10 90.60 CSCY001 +0.60 +0.67
2021 87.30 88.30 87.80 CSCY002 -0.15 -0.17
2022 86.20 87.20 86.70 CSCY003 +0.55 +0.64
*Fields are calculated.
Platts Coal Switching Price Indicator (CSPI)
Platts UK Platts UK Platts Netherlands
February 19, 2019 symbol (p/th) symbol (Eur/MWh) symbol (Eur/MWh)
Month ahead EUKVM00 65.03 EUKTM00 25.53 EDUTM00 16.42
Quarter ahead EUKVQ00 65.94 EUKTQ00 25.89 EDUTQ00 16.74
Year ahead EUKVY00 68.01 EUKTY00 26.70 EDUTY00 17.44
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, Feb 19
Platts 35% Platts 45% Platts 35%
symbol efficiency symbol efficiency symbol efficiency
CPS*
Germany (Eur/MWh)
Month ahead CCGTM00 -5.33 CCGUM00 0.53
Month ahead+1 CCGTM27 -6.38 CCGUM27 -0.44
Quarter ahead CCGTQ00 -5.23 CCGUQ00 0.79
Quarter ahead+1 CCGTQ27 -2.82 CCGUQ27 3.39
Year ahead CCGTY00 -2.59 CCGUY00 3.74
Year ahead+1 CCGTY27 -4.56 CCGUY27 1.67
Year ahead+2 CCGTY28 -3.68 CCGUY28 2.49
UK (GBP/MWh)
Month ahead CCUZM00 9.53 CCHZM00 -7.98
Month ahead+1 CCUZM27 8.87 CCHZM27 -8.64
Quarter ahead CCUZQ00 8.01 CCHZQ00 -9.51
Quarter ahead+1 CCUZQ27 7.80 CCHZQ27 -9.72
Season ahead CCUZS00 7.90 CCHZS00 -9.61
UK (Eur/MWh)
Month ahead CCUTM00 10.98 CCHTM00 -9.18
Month ahead+1 CCUTM27 10.22 CCHTM27 -9.95
Quarter ahead CCUTQ00 9.22 CCHTQ00 -10.94
Quarter ahead+1 CCUTQ27 8.99 CCHTQ27 -11.18
Season ahead CCUTS00 9.10 CCHTS00 -11.06
*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
5
Coal Trader International Wednesday, February 20, 2019
In South Africa, a 50,000 mt trade of 6,000 kcal/kg NAR coal for
March traded at $76.25/mt FOB Richards Bay, and more interest was
reported for the lower-CV physical tons as well.
This could reduce the discount to the financial 6,000 kcal/kg NAR
price – the mechanism used to price all South African physical coals
– which had been trading at high levels for several months now,
sources said.
Futures boosted by Glencore announcement, oil prices
CIF ARA thermal coal futures gained across the curve Wednesday
after opening roughly flat with Tuesday’s close.
Sources said an announcement by Anglo-Swiss miner Glencore –
the largest supplier to the seaborne market – that in coming years
production will be capped at 2019 levels added bullish sentiment to the
back of the curve as well as led to higher German year-ahead power
prices. The miner expects to produce 150 million mt of coal in 2019.
A sharp uptrend in ICE Brent Crude Futures in the late afternoon
saw coal prices follow suit, with some contracts trading around $1
higher after this.
Platts assessed the CIF ARA Cal-20 contract at $80.15/mt, up $1.35
on the day.
— Joseph Clarke
Glencore says to cap coal output,
focus on energy transition
One of the world’s largest diversified miners, Glencore, said Wednesday
that it will cap coal output by 2020 and focus more on the transition
away from fossil fuels in a clear message that climate change is on
investors’ radar.
In a statement Glencore said it “has a key role to play in enabling
transition to a low carbon economy. We do this through our well-
positioned portfolio that includes copper, cobalt, nickel, vanadium and
zinc — commodities that underpin energy and mobility transformation.
We believe this transition is a key part of the global response to the
increasing risks posed by climate change.”
The company added that it is set to cap its annual coal output at
150 million mt by 2020, similar to production forecast for 2019.
“To meet the growing needs of a lower carbon economy, Glencore
aims to prioritize its capital investment to grow production of
commodities essential to the energy and mobility transition and to
limit its coal production capacity broadly to current levels,” the
statement added.
Some were questioning if the move was simply a PR stunt by the
company, in an age when all eyes are on the rapidly changing
environmental situation.
Sources suggested that the move could see coal supply limited and
the price rise.
The news could have added fuel to the recent nickel rally. The
metal has been rallying since dropping to around $10,500/mt at the
start of the year, largely because of more and more forecasts of a
deficit of the metal to meet growing EV demand. The London Metal
Exchange nickel price was spot bid on LMEselect as of 1135 GMT at
© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Coking coal swaps assessment, Feb 20
Platts symbol $/mt Chg % Chg
TSI Premium Hard Coking Coal Australia Export FOB East Coast Port
Mar-19 MCPLM01 207.250 +1.500 +0.729
Apr-19 MCPLM02 204.750 +4.580 +2.288
May-19 MCPLM03 199.580 +3.250 +1.655
Q2-19 MCPLQ01 199.950 +3.830 +1.953
Q3-19 MCPLQ02 188.330 +1.250 +0.668
Q4-19 MCPLQ03 190.500 +1.750 +0.927
2020 MCPLY01 182.580 +0.410 +0.225
2021 MCPLY02 172.000 +0.330 +0.192
Metallurgical coke, Feb 20
Seaborne
% CSR Platts symbol $/mt Chg % Chg
FOB North China 66/65 MCCNC00 355.00 0.00 0.00
65/63 MCCHB00 344.00 0.00 0.00
64/62 AAWVL00 340.00 0.00 0.00
62/60 MCCHA00 330.00 0.00 0.00
CFR India 66/65 MCCNI00 368.00 0.00 0.00
65/63 MCINB00 357.00 0.00 0.00
64/62 MCCEI00 353.00 0.00 0.00
62/60 MCINA00 343.00 0.00 0.00
Domestic
Yuan/mt
DDP North China (weekly) 62 AAWVJ00 2220.00 +50.00 +2.30
$/mt
FOB North China equivalent (DDP weekly) 62 PLVHM04 335.37 +4.20 +1.25
Platts China PLV, met coke price differentials, Feb 20
Price spreads Platts symbol $/mt
Import-Shanxi Premium Low Vol CFR China PLVHK04 -24.42
Import-port stock Premium Low Vol CFR China PLVHL04 -5.34
62% CSR coke export-domestic FOB North China PLVHN04 1.63
$12,810/mt, up $145 from Tuesday’s close.
Back in November 2018 Norilsk’s head of sales, Markus Meurer, told
S&P Global Platts that the electronic vehicle angle for nickel could be
some years away but would eventually be “transformational” to the
industry in terms of supply and demand.
“EV is a long-term story that will be transformative for nickel,
creating another pillar of business,” Meurer said.
— Ben Kilbey
Two units at Taiwanese coal-fired plant
face six-month closure: sources
■■Two units have combined capacity of 1.1 GW
■■Sources see move as bearish for seaborne market
Singapore—Two coal units at Taiwanese Hsinta power plant, owned
and operated by Taiwan Power Company (Taipower), will temporarily
close from October until March 2020 to combat air pollution, sources
close to the matter said Wednesday.
The plant’s coal procurement will need to be assessed, and
sources said it will likely need a 5% reduction compared to 2016 levels.
Units 3 and 4, with a combined capacity of 1.1 GW, mainly burn coal
with heating value around 5,500 kcal/kg NAR, from Australia or
6
Coal Trader International Wednesday, February 20, 2019

Platts daily metallurgical coal assessments, Feb 20

Asia-Pacific coking coal ($/mt)
Platts FOB Change Platts CFR Change Platts CFR Change
symbol Australia symbol China symbol India
HCC Peak Downs Region HCCGA00 211.00 +2.00 HCCGC00 205.50 0.00 HCCGI00 222.60 +2.15
Premium Low Vol PLVHA00 210.00 +2.00 PLVHC00 205.00 0.00 PLVHI00 221.60 +2.15
HCC 64 Mid Vol HCCAU00 178.05 +0.05 HCCCH00 188.50 +0.25 HCCIN00 189.65 +0.20
Low Vol PCI MCLVA00 125.30 -0.20 MCLVC00 135.75 0.00 MCLVI00 136.90 -0.05
Mid Tier PCI MCLAA00 123.30 -0.20 MCLAC00 133.75 0.00 MCVAI00 134.90 -0.05
Semi Soft MCSSA00 116.05 -0.20 MCSSC00 126.50 0.00 MCSSI00 127.65 -0.05
TSI coking coal indices ($/mt)
TSI Premium Hard (PHCC) FOB Australia TS01034 211.80 +2.00
TSI Hard FOB Australia TS01035 178.05 +0.05
TSI Prem JM25 CFR Jingtang TS01044 205.00 0.00
TSI Hard JM25 CFR Jingtang TS01045 188.50 +0.25
Atlantic coking coal ($/mt)
Platts FOB US
symbol East Coast Change VM Ash S
Low Vol HCC AAWWR00 187.00 0.00 19% 8% 0.80%
High Vol A AAWWS00 204.00 0.00 32% 7% 0.85%
High Vol B AAWWT00 168.00 0.00 34% 8% 0.95%
CFR NW Europe Change VM Ash S
PLV NetForward PLVHE00 219.50 +1.70 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 1680 PCCMB04 1715 PCCMC04 1940 PLVHJ04 229.42
PCC Met Shanxi High Sulfur Premium Low Vol PCCMD04 1220 PCCME04 1255 PCCMF04 1480
PCC Met North China Fat Coal — — PCCMG04 1510
PCC Met Shanxi PCI PCCMH04 920 PCCMI04 955 PCCMJ04 1155
PCC Met Shandong Semi Soft PCCMK04 1090 PCCML04 1110 —

PCC Met Rail Freight Shanxi – Tangshan PCCMM04 230

PCC Met Truck Freight Shanxi – Tangshan PCCMO04 260
*Weekly (assessed February 20).

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 1680.00 AAWZO00 210.34
HCC 64 Mid Vol* AAWZP00 1550.00 AAWZQ00 193.77
*Weekly (assessed February 15), 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 1.05
Per 1% VM (air dried) 18-27% CPVPA00 0.50% CPVMP00 1.05
Per 1% TM (as received) 8-11% CPTPA00 1.00% CPTMP00 2.10
Per 1% Ash (air dried) 7-10.5% CPAPA00 1.50% CPPAP00 3.15
Per 0.1%S (air dried) 0.3-1% CPSPA00 1.00% CPSPV00 2.10
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 0.94
40-49% CPPBC00 0.50% CPPBD00 0.94
Per 0.1% S 0.70-1.05% CPPBE00 0.75% CPPBF00 1.40
1.06-1.25% CPPBG00 1.10% CPPBH00 2.06
Per 1% TM (as received) 6-11% CPPBK00 1.00% CPPBL00 1.87
Per 1% Ash 5-10% CPPBI00 1.75% CPPBJ00 3.27
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.

© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 7
Coal Trader International Wednesday, February 20, 2019
Indonesia, market sources said.
This could have a negative impact on seaborne market as the plant
has yet to purchase thermal coal for the six-month period, sources
said, keeping demand limited in an already bearish market.
Poor air quality in Taiwan has seen coal-fired power generation
often come under scrutiny, although the Ministry of Economic Affairs
have previously stated the country will continue to use high-efficiency
coal power in its energy mix.
Taiwan currently has 2.45 GW of coal-fired capacity under
construction, with a total operational capacity of 18.6 GW, according to
S&P Global Platts World Electric Power Plants Database.
Taipower could not be reached for comment Wednesday.
— Jenny Ma, Joseph Clarke
German lignite closure debate continues
as RWE agrees Hambach moratorium
■■Moratorium to autumn 2020 with court decision in late 2020
■■RWE calls for compensation talks with $1.3 billion/GW request
■■Commission called for 3 GW closures, preserve Hambach forest
London—RWE has agreed to a moratorium on clearance of the
Hambach forest, which stands in the way of the generator’s plans to
expand lignite mining in the state of North-Rhine Westphalia, NRW
prime minister Armin Laschet said Wednesday.
The moratorium is little more than tacit recognition that clearance
cannot continue until a court ruling on the woodland is decided late
next year.
Meanwhile the debate on 3 GW of lignite plant closures by 2022
remains fierce, with RWE resisting coal commission recommendations
that it should shoulder the burden of the first-phase closures alone.
The forest near Cologne has become a battleground for
environmentalists, while the government-appointed coal commission
has recommended preserving the woodland.
In October a regional court stopped clearance operations while it
considers whether the woodland should be protected. A final legal
decision is unlikely before end-2020.
RWE has ramped down mining operations, and anticipated a
reduction in related power output of 9-13 TWh/year this and next year.
On the commission’s recommendations, meanwhile, RWE says
first-phase closures to 2022 should not be focused exclusively on its
Rhenish region in western Germany.
Last week RWE CEO Rolf-Martin Schmitz said Eur1.2 billion -1.5
billion ($1.35 billion-$1.7 billion) per GW would be needed to
compensate closures if mining operations were implicated. This is
double the level of current compensation offered under the country’s
lignite reserve mechanism.
According to a media report, RWE is prepared to close 2.4 GW by 2022
if compensated. A spokesperson for RWE, however, rejected this figure.
Official talks between the federal government and plant operators
are yet to start.
The talks were recommended in the commission’s final report,
capping lignite capacity at 15 GW by 2022 and 9 GW by 2030, from
today’s 19 GW.
© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Platts daily Asia Pacific metallurgical coal
relativities, February 20, 2019
February 20 Spread Spread
CFR China vs PLV vs HCC 64
$/mt
Peak Downs 205.50* 100.24%
*Peak Downs FOB Australia (China netback) after accounting for Haypoint-Qingdao Panamax
freight = $195.05/mt.
Saraji 205.00 100.00%
Premium Low Vol 205.00** 100.00%
**Premium Low Vol FOB Australia (China netback) after accounting for Haypoint-Qingdao
Panamax freight = $194.55/mt.
German Creek 203.75 99.39%
Illawarra 202.75 98.90%
Moranbah North 202.75 98.90%
Oaky North 203.50 99.27%
Goonyella 202.75 98.90%
Goonyella C 201.00 98.05%
Peak Downs North 201.00 98.05% 106.63%
Standard 201.75 98.41% 107.03%
Premium 201.75 98.41% 107.03%
Hail Creek 197.50 96.34%
HCC 64 Mid Vol 188.50 91.95% 100.00%
Lake Vermont HCC 188.50 100.00%
Carborough Downs 187.00 99.20%
Middlemount Coking 171.50 90.98%
Poitrel Semi Hard 166.50 88.33%
February 20 freight rates. Australia to China: Panamax = $10.45/mt Capesize = $6.10/mt.
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
RWE’s German lignite units with Hambach mine supply links
Unit Capacity (in MW) Commissioned
Niederaussem C 295 1965
Niederaussem D 297 1968
Neurath A 294 1972
Neurath B 294 1972
Niederaussem H 632 1974
Niederaussem G 628 1974
Neurath D 607 1975
Neurath E 604 1976
Niederaussem K 944 2003
Neurath F 1060 2012
Neurath G 1060 2012
Total 6715
Source: RWE, S&P Global Platts
German Coal Commission Recommends Coal Caps (GW)
Coal (total) Lignite Hard-Coal
end-2017 installed 42.5 19.9 22.7
end-2020 (business as usual) 38.6 18.1 20.5
end-2022 (business as usual) 37.3 18 19.3
2022 recommended cap 30 15 15
2030 recommended cap 17 9 8
Source: Coal Commission (WSB)
8
Coal Trader International Wednesday, February 20, 2019
RWE power stations supplied by the Hambach lignite mine
generated 50 TWh in 2017.
RWE has already agreed to close 1.5 GW to be moved to the lignite
reserve mechanism.
— Andreas Franke
Taiwan’s Jan coal imports up
17% on year: customs data
■■Coal imports from Indonesia jumped 62% on year
■■South African imports surged nearly 500% on year
Singapore—Taiwan’s total coal imports in January were 5.91 million mt,
up about 17.3% year on year, according to preliminary customs data.
There was a slight increase of 0.3% month on month in the imports.
Imports from Australia continued to dominate at close to 3 million
mt of bituminous coal and 30,000 mt of sub bituminous coal in January.
This was up 4.53% on the month, and up close to 14% year on year.
Total coal imports from Indonesia stood at 1.86 million mt, up about
24% month on month and increased 62% on year.
South Africa was the third largest contributor to Taiwan’s imports
in January, shipping 426,687 mt. Imports from South Africa surged
close to 500% from 74,231 mt from a year ago, but down 15% from
502,739 mt in December.
— Hui Min Lee
Newcastle thermal coal benchmark to average
$98/mt in 2019 after recovery: analyst
■■Asia-Pacific demand to grow by 34 million mt in 2023
■■Multiple large Australian mines experiencing production dips
Houston—The Newcastle high energy thermal coal benchmark is set to
average $98/mt in 2019, after recovering from a $12/mt drop to $88/mt
at the turn of the year, according to a Wood Mackenzie analyst.
Despite a fall in Australian high calorific value (CV) thermal coal
supply in 2018, and expectations of only a partial recovery for this year,
demand in the Asia-Pacific region is expected to grow by 3 million mt
in 2019 and by 34 million mt in 2023, according to principal analyst
Viktor Tanevski.
India, Vietnam, South Korea, Pakistan and Malaysia will lead the rise
in demand, he said.
“Widening price spreads between high CV and high ash thermal
coal begged questions why we weren’t seeing a supply response?”
Tanevski wrote.
The analyst noted constraints at several large Australian thermal
coal mines, which saw production declines last year, along with mines
experiencing short-term sequencing changes and falling product quality.
The Mt. Arthur and HVO mines, two of the largest in New South
Wales, both reported production declines in 2018, with output falling
4% and 11%, respectively, while the Narrabri mine dropped 30%.
Output from Mach Energy’s Mt Pleasant mine, also in New South
Wales, is set to remain “essentially flat” through 2021.
Additionally, “pricing differentials between high CV thermal and
© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 9
semi-soft [coal] also played a part, with lower semi-soft supply
offsetting the fall in high CV supply,” the report said.
The Wood Mackenzie report notes high CV supply could fall again in
2022 due to a decrease in output at the Mt Owen mine, along with the
possible closure of the Lidell mine.
Coal quality at Mt. Arthur mine is expected to fall as well by then,
with a “growing likelihood of a return to 2018 production levels,”
Tanevski wrote.
— Olivia Kalb
Canada’s Ridley Terminals January
coal exports jump to 16-month high
■■January coal exports at 797,171 mt, up 9.5% on month
■■Thermal exports at six-month high 254,843 mt
Houston—Coal exports from the Ridley Terminal in Prince Rupert,
British Columbia, totaled a 16-month high 797,171 mt in January, up
9.5% from 728,197 mt in December and the highest since 833,584 mt
in September 2017, according to data from the Prince Rupert Port
Authority released Monday.
The total, which combines metallurgical and thermal coal, was up
75% from the year-ago month and was the most shipped out in the
month of January in over eight years.
The 1.53 million mt exported in the last two months was the most
in a two-month span since 1.55 million st was shipped between
December 2013 and January 2014.
Met coal exports from the terminal were at a five-month high 542,328
mt in January, up 14.4% from December and 49% higher than the year-
ago month. It was the highest monthly total for met exports in the first
month of the year since 593,520 mt was exported in January 2013.
Thermal coal exports in January totaled a six-month high 254,843
mt, up 0.3% from December and up nearly threefold from the year-ago
month. It was the highest monthly total for January since 311,030 mt
was exported in 2013.
The terminal, the closest major North American coal export
terminal to Asia, is served by Canadian National railroad. The largest
customer is Conuma Coal Resources, a met coal producer in British
Columbia.
— Tyler Godwin
Coal Trader International Wednesday, February 20, 2019
Met coal spot prices firm
on intensified buying interest
Singapore—Seaborne metallurgical coal activity picks up in the middle
of the week with fresh trades done.
S&P Global Platts assessed the Premium Low Vol coal up $2/mt to
$210mt FOB Australia, while the CFR China assessment was flat at
$205/mt on Wednesday.
There were late reports of an accident at Moranbah North mine,
which an Anglo American spokesman confirmed with Platts
Wednesday evening. No other details, however, were available at the
time of writing.
Meanwhile in the FOB market, a trade was done for a 75,000 mt
cargo for the likes of Semi Premium blend Peak Downs North with mid-
April laycan, sources said. The trade took place after Platts’ market on
close assessment timestamp of Singapore 5.30 pm (0930 GMT), and the
laycan period falls outside of Platts’ assessment laycan of 7-45 days.
Hence, the trade was not fully reflected in Wednesday’s assessment.
While there appears to be no urgent demand by FOB market
participants, seller sources expect buying activity to pick up in the
near term.
In China, a trade was done Tuesday evening for 85,000 mt of Premium
Low Vol Oaky North at $203.20/mt CFR China. This was for on-the-water
cargo arriving China late February, to an end-user. The buyer source said
he prefers to take a prompt cargo compared with a March laycan cargo
due to the potential delay at Chinese ports. This has prompted him to
procure and ensure sufficient inventories as the restrictions imposed
remains unclear. At Jingtang port, sources said that customs clearance
would require 40-45 days compared to 25 days before the port restriction
was implemented at major ports in China in early February.
“I’m surprised that people are still buying given the restrictions,” a
miner said. Chinese market participants however, were not overly
concerned over the restrictions. Seller sources confirmed there was
interest from end-users seeking Australia’s coking coal as seaborne
coking coal prices remain competitive compared to domestic coking
coal prices. Platts assessed the CFR China equivalent of Shanxi PLV at
$229.42/mt Wednesday, putting the domestic seaborne price arbitrage
at $24.42/mt, with seaborne material being the cheaper one.
A sell tender for fixed price CFR China will be held Thursday for
80,000 mt of Australian Premium Low Vol with sellers’ option to deliver
Saraji or Peak Downs, whose brand will be declared 14 days prior to
laycan. This was for April 10-24 laycan.
“There is demand but we are in no hurry to sell. Sellers are not
willing to lower offers too,” a Chinese trader said the reluctance to
lower offer was due to the limited cargoes available for March laycan.
In the second tier segment, an 80,000 mt cargo for Peabody’s HCC
with 56% CSR and 8.3% Ash with mid-March laycan was heard seeking
for price indications in China Wednesday.
Meanwhile, two miners selling Australia’s pulverized coal injection
confirmed there were limited availability in the near term. Competitive
Russian PCI prices, port stock cargoes and stable Chinese’s domestic
PCI pricing may have helped fulfill end-users demand, sources said.
— Yi-Le Weng, Kate Zhou
© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Platts Hard Coking Coal FOB Australia
Daily Rationale (PMA page 1068)
S&P Global Platts assessed Premium Low-Vol HCC up $2/mt to $210/mt FOB
Australia Wednesday. The highest bid was indicated at around $205/mt FOB
Australia for Australian Semi-Premium Peak Downs North, and assessed at
$2.50/mt discount to Platts PLV 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
Platts China Hard Coking Coal (Premium Low Vol) CFR
China Daily Rationale (PMA page 1067)
S&P Global Platts assessed Premium Low-Vol HCC steady at $205/mt CFR
China Wednesday. The most competitive indicative offer was around $204-
$205/mt CFR China for 85,000 mt of Australian Premium Mid-Vol Goonyella,
with March 1-10 laycan, and assessed at $2.25/mt discount to Platts PLV CFR
China. The highest bid was indicated at $204/mt CFR China for Australian
Premium Low-Vol Saraji, assessed at parity to Platts PLV CFR China. 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)
Platts to adjust US FOB coal assessments
S&P Global Platts is proposing to discontinue some of its weekly US FOB
assessments for physical thermal coal on April 5, 2019, and add new ones.
The following assessments would be discontinued:
*FOB Baltimore 6,944 kcal/kg NAR 2.6% sulfur (CUAAA04);
*FOB Hampton Roads 6,667 kcal/kg NAR 1% sulfur (CUABA04);
*FOB New Orleans 6,111 kcal/kg NAR 2.9% sulfur (CUACA04).
The related monthly and quarterly averages would also be discontinued, as follows:
*FOB Baltimore 13000 Btu/lb GAR 2.6%S $/mt Mavg (CUAAA03);
*FOB Baltimore 13000 Btu/lb GAR 2.6%S $/mt Qavg (CUAAA05);
*FOB Hampton Roads 12500 Btu/lb GAR 1%S $/mt MAvg (CUABA03);
*FOB Hampton Roads 12500 Btu/lb GAR 1%S $/mt QAvg (CUABA05);
*FOB New Orleans 11500 Btu/lb GAR 2.9%S $/mt MAvg (CUACA03);
*FOB New Orleans 11500 Btu/lb GAR 2.9%S $/mt QAvg (CUACA05).
In addition, Platts is proposing to launch a new assessment for thermal coal
for export from the Port of Baltimore, as follows:
*FOB Baltimore 6,900 kcal/kg NAR 3% sulfur.
The proposed assessment would also include a monthly and quarterly average.
Finally, the existing assessments for FOB Hampton Roads 6,000 kcal/kg NAR 1%
sulfur (CUAEA04) and FOB New Orleans 6,000 kcal/kg NAR 2.9% sulfur
(CUAFA04), which previously were calculated based on the assessments for
FOB Hampton Roads 6,667 kcal/kg NAR 1% sulfur (CUABA04) and FOB New
Orleans 6,111 kcal/kg NAR 2.9% sulfur (CUACA04), respectively, will instead be
converted into assessments, with value based on trades, bids, offers and
indications heard in the market.
Please address any questions or comments by March 1 to coal@spglobal.com
and pricemethodology@spglobal.com.
For written comments, please provide a clear indication if comments are not
intended for publication by Platts for public viewing. Platts will consider all
comments received and will make comments not marked as confidential
available upon request.
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Coal Trader International Wednesday, February 20, 2019
Glencore limiting coal output seen
boosting FOB Newcastle prices ... from page 1
our coal production capacity broadly to current levels,” Glencore said.
The announcement comes less than a week after Japan’s Itochu
announced its efforts to divest from coal by deciding to sell the
company’s interest in the Australian Rolleston mine Thursday.
A coal analyst said that with FOB Newcastle prices having fallen
since the start of the year and the upcoming annual negotiations
between Glencore and a large Japanese utility, the announcement
could be bullish for Glencore’s price expectations.
S&P Global Platts FOB Newcastle 6,000 kcal/kg NAR, 7-45 day price
was assessed at $89.25/mt Tuesday, having opened the year at
$100.30/mt.
“This seems to have given the market a decent shove this
morning,” a broker said.
The FOB Newcastle 6,000 kcal/kg NAR Cal-20 opened at
$90.20/mt, having closed at $90/mt Tuesday.
The CIF ARA 6,000 kcal/kg NAR Cal-20 opened the market at
$79.50/mt, up 70 cents from Tuesday’s price.
© 2019 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Consultancy Wood Mackenzie said Monday that high CV thermal
coal would remain in tight supply in coming years, lending support to
prices. The latest announcement from Glencore could provide even
more support.
In 2018 Glencore produced 129.4 million mt of coal, a rise of 7% on the
year, with Australian export production coming to 59.4 million mt, up 21%.
Coking coal production accounted for 11.4 million mt of the global total.
Glencore’s earnings benefit from higher coal prices
Glencore’s earnings in 2018 were helped by high coal prices as well
as acquisitions of Australian coal operations, the company said in an
earnings report also filed Wednesday.
The earnings report said the average FOB Newcastle 6,000 kcal/kg
NAR price in 2018 was $100/mt, a rise of 22% on year.
The miner posted earnings of $6.3 billion in net operating revenue
from its Australian thermal coal operations, which was a rise of 29% on
the year. Total revenue from coal came to $12.34 billion, up 26%.
Contributions from the Hunter Valley Operations and Hail Creek
acquisitions helped raise coal revenues as well as increase overall
EBITDA from Glencore’s energy portfolio, the company said.
— Piers De Wilde
11