COAL TRADER INTERNATIONAL

Volume 18 / Issue 184 / Friday, September 21, 2018

Yuan weakness weighs Daily prompt physical thermal coal assessments, Sep 21

on China imports market CV (kcal/kg) Window Platts symbol $/mt Chg

North East Asia
■■China buyers reluctant to buy imported cargoes NEAT Coal Index 5,750 NAR 15-60 day JKTCA00 89.38 0.00
■■Qinhuangdao domestic prices rise on supply issues
Atlantic

Singapore—Currency volatility was on the mind for seaborne market CIF ARA 6,000 NAR 15-60 day CSARM01 98.70 -0.80

participants in China and trade was slower with the approaching public FOB Richards Bay 5,500 NAR 7-45 day AAXEX00 73.55 -1.75
(continued on page 9)
Australia
FOB Newcastle 20% Ash 5,500 NAR 7-45 day AAVUW00 68.25 0.00
FOB Newcastle 23% Ash 5,500 NAR 7-45 day AAVVB00 66.50 0.00
Key Drivers/Market Highlights
FOB Newcastle Ash Differential AAVVA00 0.58
Vietnam, India import demand rises
„„
FOB Newcastle 6,300 GAR 7-45 day CSNCB00 111.80 -0.10
CIF ARA Cal-19 hits fresh multi-year high
„„
Australian coal still headed to ARA
„„ Indonesia
FOB Kalimantan (Geared Supramax) 4,200 GAR 7-45 day CSBKI00 38.40 0.00
FOB Kalimantan (Geared Supramax) 3,800 GAR 7-45 day CSCKJ00 30.75 0.00
FOB Kalimantan (Geared Supramax) 5,900 GAR 90-day CSAKH00 72.65 0.00
Inside this issue FOB Kalimantan (Geared Supramax) 5,000 GAR 90-day CSAKI00 52.25 0.00
Thermal coal forward curves
„„ 2
India
CIF ARA quarter/year ahead spread narrows
„„ 3
CFR India West (Gearless Panamax) 5,500 NAR 30-60 day CIWCI00 89.90 -0.80
Weekly prompt physical thermal coal prices
„„ 3
CFR India West (Gearless Panamax) 5,000 GAR 30-60 day TCAKP00 64.00 0.00
Recent heards in the thermal coal market
„„ 4
CFR India West (Gearless Panamax) 4,200 GAR 30-60 day TCAKT00 50.15 0.00
Indian thermal coal stocks at lowest since December
„„ 5
CFR India West (Geared Supramax) 3,800 GAR 30-60 day TCAKR00 44.25 0.00
US miner Peabody to acquire Shoal Creek coking coal mine
„„ 6
CFR India East (Gearless Panamax) 5,500 NAR 30-60 day CIECI00 90.25 -0.80
Coal Trader International Analytics Supplement
„„ 12
CFR India East (Gearless Panamax) 5,000 GAR 30-60 day TCAKJ00 62.90 0.00
CFR India East (Gearless Panamax) 4,200 GAR 30-60 day TCAKU00 49.05 0.00
ATLANTIC THERMAL COAL KEY PRICE POINTS ($/mt)
CFR India East (Geared Supramax) 3,800 GAR 30-60 day TCAKS00 42.20 0.00
FOB Baltic Russia 6,000 NAR 93.45
CV (kcal/kg) Window Platts symbol $/mt Chg
China
CIF ARA 6,000 NAR 98.70 PCC 1 (FOB Qinhuangdao) 5,500 NAR 7-45 day PCCQH00 92.46* +0.52
PCC 2 (FOB Qinhuangdao) 5,000 NAR 7-45 day PCCPN00 81.01* +0.49

CIF Turkey 6,000 NAR 105.00 PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPQ00 47.60 0.00
PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPP00 61.65 0.00
PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSC00 77.50 0.00

Yuan/mt
PCC 1 (FOB Qinhuangdao) 5,500 NAR 7-45 day PCCQG00 630.00* +2.00

FOB Colombia 6,000 NAR 91.00
FOB Richards Bay 5,500 NAR 73.55
FOB Richards Bay 6,000 NAR netback 85.63
Source: S&P Global Platts
PCC 2 (FOB Qinhuangdao) 5,000 NAR 7-45 day PCCPM00 552.00* +2.00
PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPR00 324.34 -0.80
PCC 6 (VAT included) 3,800 NAR 30-60 day PCCPS00 376.23 -0.93
PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPO00 420.07 -1.05
PCC 7 (VAT included) 4,700 NAR 30-60 day PCCFB00 487.28 -1.22
PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSD00 528.07 -1.31
PCC 8 (Duty & VAT included) 5,500 NAR 15-60 day PCCFA00 612.56 -1.52
*Includes VAT

www.platts.com www.twitter.com/PlattsCoal
Coal Trader International Friday, September 21, 2018
Atlantic thermal coal market
bullish despite price slide
■■Margins for coal generation in Europe healthy
■■Cal-19 reaches new multi-year high
■■Russian coals kept at premium
London—The CIF ARA physical coal price fell at the end of the week,
although the overall market, particularly the futures curve, remained at
high levels with positive sentiment.
Platts assessed the CIF ARA 15-60 day physical 6,000 kcal/kg NAR
price at $98.70/mt, down 70 cents day on day and 30 cents week on
week.
Although the price was lower, sources were far from bearish on
Friday, being quick to point to the overall high price level averages in
the last few weeks, underpinned by healthy margins for coal-fired
generation in Europe.
A European utility said the physical market was driven by some
genuine fundamentals, but also said a few select counterparties were
also likely supporting their own positions at high levels.
“There are some drivers behind the high prices, but also some
guys looking to move the level where they want it,” the source said.
On the supply side, the source said coal availability from Colombia
was still tight owing to “genuine physical shortages” as mine
production in the first half of the year had been low and the country’s
main producers were unable to make up for the lost volumes so far.
The source said “Russian volumes are still available” although
producers were keeping premiums strong, while US coal was being
“pushed aggressively by producers”
A European trader was still seeing flows of off-spec, high-ash
coals, notably from Australia and South Africa.
A second European trader expected these flows to lead to more
demand for US coals for blending.
“More US high sulfur will flow into ARA to blend with the off spec,”
the source said.
Year-ahead futures trade at another multi-year high
Thermal coal futures saw another day of high trade levels as the
European energy complex had “everything else getting caught up in
the forward movement,” according to the European utility.
The Cal-19 contract traded as high at $98.65/mt in the afternoon
before cooling in the last hour of trading to be assessed at $97.70/mt,
up 20 cents day on day and the highest year-ahead price since late
February 2013.
A European trader said the day’s movement was largely driven by
strong gas pricing keeping coal competitive within the European
energy mix, while the on-day movements were nothing large, “just
normal movements”.
A second European trader said the further delay of nuclear outages
in Belgium were also a key driver behind the day’s movements, proving
bullish for coal.
The first trader was unsure there was any upside space for any
further price increases, noting the much narrower spreads across the
curve in recent weeks.
— Joseph Clarke
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Thermal coal forward curves, September 21
Bid Ask Midpoint* Platts symbol Change* % Change
CIF ARA 6,000 NAR
Oct-18 100.65 100.95 100.80 CSAM001 +0.80 +0.80
Nov-18 100.50 100.80 100.65 CSAM002 +0.70 +0.70
Q4-18 100.55 100.85 100.70 CSAQ001 +1.00 +1.00
Q1-19 100.00 100.30 100.15 CSAQ002 +0.85 +0.86
Q2-19 97.55 97.85 97.70 CSAQ003 +0.20 +0.21
Q3-19 96.50 96.80 96.65 CSAQ004 -0.15 -0.15
2019 97.55 97.85 97.70 CSAY001 +0.20 +0.21
2020 91.25 91.55 91.40 CSAY002 +0.20 +0.22
2021 88.05 88.35 88.20 CSAY003 +0.15 +0.17
FOB Newcastle 6,300 GAR
Oct-18 111.95 112.45 112.20 CSCM001 +0.35 +0.31
Nov-18 111.80 112.30 112.05 CSCM002 +0.40 +0.36
Q4-18 111.75 112.25 112.00 CSCQ001 +0.35 +0.31
Q1-19 110.95 111.45 111.20 CSCQ002 +0.30 +0.27
Q2-19 107.35 107.85 107.60 CSCQ003 0.00 0.00
Q3-19 104.80 105.30 105.05 CSCQ004 -0.15 -0.14
2019 106.10 107.10 106.60 CSCY001 -0.10 -0.09
2020 98.20 99.20 98.70 CSCY002 -0.45 -0.45
2021 94.70 95.70 95.20 CSCY003 -1.10 -1.14
*Fields are calculated.
PLATTS FORWARD CURVE COAL, SEPTEMBER 21
($/mt) FOB Newcastle CIF ARA
120
100
80
Oct-18 Nov-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, Sep 21
CV Basis Sulfur Chg
Coal ($/mt)
CIF ARA CSARM01 6,000 Kcal/kg NAR 1.0% 98.70 -0.80
NEAT Coal Index JKTCA00 5,750 Kcal/kg NAR 1.0% 89.38 0.00
CFR India West CIWCI00 5,500 Kcal/kg NAR 0.8% 89.90 -0.80
Freight ($/mt)
USEC-Rotterdam CDBUR00 Panamax 12.00 0.00
Mobile-Rotterdam CDMAR00 Panamax 16.00 0.00
Roberts Bank-Japan CDRBK00 Panamax 17.05 0.00
Richards Bay-India West CSAKL00 Panamax 14.60 0.00
Penalties & Premia ($/mt)
Per 0.1% Sulfur (USGC) COPAP00 0.74 0.00
Total S discount (USGC) COPBP00 14.06 0.00
Netbacks ($/st)
FOB US East Coast COUSC00 12,500 Btu/lb GAR 1.0% 87.40 -0.80
FOB US Gulf Coast COUGU00 11,500 Btu/lb GAR 2.9% 63.66 -0.74
FOB Vancouver COVCU00 8,800 Btu/lb GAR 0.8% 52.62 0.00
Netbacks ($/mt)
FOB Richards Bay CSEUW00 6,000 Kcal/kg NAR 0.8% 85.63 -0.87
2
Coal Trader International Friday, September 21, 2018
CIF ARA Q4-18/Cal-19 coal spread
narrows on bullish energy complex
■■Gas storage issues bullish for coal
■■Cal-19 at multiyear highs
London—The spread between the CIF ARA prompt quarter and year-
ahead contracts narrowed to $2.20/mt on Thursday, having been at
$7.65/mt just a month earlier, making the current spread the smallest
since February as bullish external factors from the energy complex in
Europe have given support further out along the curve.
Traders have linked the favorable year-ahead clean-dark spreads
as a bullish factor for the back of the curve, with S&P Global Platts
calculations showing the spreads for German coal-fired plants with a
45% efficiency reaching Eur8.02/MWh on September 13, the highest
level since Platts began calculating this spread.
One analyst said that, despite any hesitation for utilities to
purchase spot tons for winter over a possible high-wind scenario,
traders have been conscious to lock in their profits for the year-ahead
dark-spreads.
Gas shortage for the winter season and further out has also added
support to the CIF ARA market. Amid fears of another cold winter and
low storage compared to the year-ago period, gas prices have inflated
in Europe, thus leaving more room for coal prices to increase, with
utilities preparing to burn coal if gas shortages are not alleviated.
Despite higher EUA emissions prices being a bearish factor for
coal, prices rose to a seven year-high of Eur25.23/mt for the
December 2018 contract on September 10, which allowed gas and
power prices to rise on the back of this, thus leaving more room for
coal to price higher.
Platts assessed the Cal-19 contract at $97.60/mt Wednesday, the
highest price for a year-ahead contract since February 28, 2013.
Although currency movements are seen by traders as less of a
factor for price volatility in the futures curve compared to the energy
complex in Europe, the euro fell to 1.15 against the dollar on August 23,
slowly rising since, peaking at 1.18 Friday. The stronger euro would have
allowed European trading houses to acquire coal contracts in dollars at
cheaper rates, which has also been bullish for the CIF ARA curve.
— Piers De Wilde
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Weekly prompt physical thermal coal prices, Sep 21
CV (kcal/kg) Window Platts symbol $/mt Chg
CIF Turkey 6,000 NAR 90-day CTCMT04 105.00 +1.50
FOB Colombia 6,000 NAR 90-day CSABZ00 91.00 -0.25
FOB Russia Baltic 6,000 NAR 90-day CSAKC00 93.45 -0.80
FOB Russia Pacific 6,300 GAR 90-day CSAKG00 117.00 0.00
Platts Coal Switching Price Indicator (CSPI)
Platts UK Platts UK Platts Netherlands
September 20, 2018 symbol (p/th) symbol (Eur/MWh) symbol (Eur/MWh)
Month ahead EUKVM00 78.52 EUKTM00 30.18 EDUTM00 20.57
Quarter ahead EUKVQ00 78.39 EUKTQ00 30.13 EDUTQ00 20.52
Year ahead EUKVY00 77.74 EUKTY00 29.88 EDUTY00 20.29
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, Sep 20
Platts 35% Platts 45% Platts 35%
symbol efficiency symbol efficiency symbol efficiency
CPS*
Germany (Eur/MWh)
Month ahead CCGTM00 6.62 CCGUM00 14.37
Month ahead+1 CCGTM27 11.54 CCGUM27 19.28
Quarter ahead CCGTQ00 6.93 CCGUQ00 14.65
Quarter ahead+1 CCGTQ27 6.53 CCGUQ27 14.22
Year ahead CCGTY00 -0.04 CCGUY00 7.51
Year ahead+1 CCGTY27 -3.33 CCGUY27 3.73
Year ahead+2 CCGTY28 -4.68 CCGUY28 2.14
UK (GBP/MWh)
Month ahead CCUZM00 19.34 CCHZM00 1.83
Month ahead+1 CCUZM27 23.26 CCHZM27 5.75
Quarter ahead CCUZQ00 22.54 CCHZQ00 5.02
Quarter ahead+1 CCUZQ27 23.69 CCHZQ27 6.18
Season ahead CCUZS00 23.11 CCHZS00 5.60
UK (Eur/MWh)
Month ahead CCUTM00 21.78 CCHTM00 2.06
Month ahead+1 CCUTM27 26.19 CCHTM27 6.47
Quarter ahead CCUTQ00 25.38 CCHTQ00 5.66
Quarter ahead+1 CCUTQ27 26.68 CCHTQ27 6.96
Season ahead CCUTS00 26.03 CCHTS00 6.31
*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 Sep 21
Btu/lb GAR Sulfur kcal/kg NAR Code $/mt
FOB Baltimore 13,000 2.6% 6,944 CUAAA04 83.50
FOB Hampton Roads 12,500 1.0% 6,667 CUABA04 96.67
FOB New Orleans 11,500 2.9% 6,111 CUACA04 68.50
Normalized
FOB Baltimore 6,000 CUADA04 72.15
FOB Hampton Roads 6,000 CUAEA04 87.00
FOB New Orleans 6,000 CUAFA04 67.26
Note: Loading 15-60 day basis
Recent FOB US Coal heards, Sep 21
Date Product Heat content Tons (mt) Loading Type $/mt
13-Sep FOB Baltimore 6900 NAR 75,000 Oct Trade 88.00
12-Sep CFR WC India 6900 NAR 75,000 Oct Trade 115.50
12-Sep CFR Kandla 6100 NAR 75,000 Oct Bid 89.50
6-Sep FOB Baltimore 6900 NAR Unknown Oct Offer 84.00
5-Sep CFR Kandla 6100 NAR 75,000 Oct Bid 89.50
31-Aug FOB Baltimore 6900 NAR Unknown Oct Offer 88.00
31-Aug FOB Baltimore 6900 NAR 80,000 Sep Trade 87.00
31-Aug CFR EC India 6900 NAR 75,000 Sep Trade 113.50
24-Aug CFR EC India 6900 NAR 75,000 Sep Trade 113.00
17-Aug FOB Baltimore 6900 NAR Unknown Unknown Offer 84.00
17-Aug FOB New Orleans 6000 NAR Unknown Unknown Offer 71.00
3
Coal Trader International Friday, September 21, 2018

Recent heards in the thermal coal market

Date Grade of coal Details
Atlantic
21-Sep-18 DES AR ACPRSU 6,000 NAR TRADE: 50,000 mt for November at $100.65/mt: Braemar
21-Sep-18 CIF Turkey 6,000 NAR TRADE: Three 40,000 mt vessels for Q4 at $104/mt: trader
21-Sep-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for October at $98/mt: Braemar
21-Sep-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $98.75/mt: Braemar
21-Sep-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for November at $100.40/mt: Braemar
21-Sep-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for November at $100.65/mt: Braemar
21-Sep-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $99.25/mt: globalCOAL
21-Sep-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for November at $100.75/mt: globalCOAL
21-Sep-18 FOB Richards Bay 6,000 NAR BID: 50,000 mt for October at $94.50/mt: globalCOAL
21-Sep-18 FOB Richards Bay 6,000 NAR OFFER: 50,000 mt for October at $97.25/mt: globalCOAL
20-Sep-18 FOB Richards Bay 6,000 NAR BID: 50,000 mt for November at $97/mt: globalCOAL
20-Sep-18 FOB Richards Bay 6,000 NAR OFFER: 50,000 mt for October at $97.50/mt EFP: globalCOAL
20-Sep-18 FOB Richards Bay 6,000 NAR BID: 50,000 mt for October at $96.50/mt: globalCOAL
20-Sep-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for November at $101.50/mt: Braemar
20-Sep-18 DES AR ACPRSU 6,000 NAR BID: 50,000 mt for November at $101/mt: Braemar
20-Sep-18 DES AR ACPRSU 6,000 NAR OFFER: 50,000 mt for October at $99.75/mt: Braemar

Pacific
21-Sep-18 FOB Newcastle 5,500 NAR BID: October and November Capesize cargoes for China at $65/mt: market source
21-Sep-18 FOB Kalimantan 5,100 GAR TRADE: Two geared vessels for October and November at $58.10/mt: Thailand trader
21-Sep-18 FOB Kalimantan 4,800 NAR OFFER: Supramax for October at $55.25/mt, 1.2% sulfur: trader
21-Sep-18 FOB Kalimantan 4,500 NAR OFFER: Supramax for end September/early October at $51/mt: trader
21-Sep-18 FOB Kalimantan 3,800 NAR OFFER: Panamax for end September/early October at $41.5/mt: trader
21-Sep-18 FOB Kalimantan 3,800 NAR OFFER: Panamax for October at $40.5-$41/mt: trader
20-Sep-18 FOB Newcastle 5,500 NAR BID: October-November Capesize cargo for China at $65/mt: market source
20-Sep-18 FOB Kalimantan 3,800 NAR TRADE: Supramax for 1H October at $38.25/mt: market source
20-Sep-18 FOB Kalimantan 3,800 NAR TRADE: Supramax for 1H October at $38/mt: market source
20-Sep-18 FOB Kalimantan 3,800 NAR OFFER: Panamax for October at $40.5/mt: China-based trader
20-Sep-18 FOB Kalimantan 3,800 NAR OFFER: Panamax for October at $40/mt: trader

Coal Trader International is published every business day by Platts, a
division of S&P Global, registered office: 20 Canada Square, Canary
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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 184 / September 21, 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 Friday, September 21, 2018
Turkish thermal coal market
stunted by economic woes
■■Medcem tender heard concluded at $104/mt
■■Egypt demand low
London—Turkish-delivered thermal coal markets continued to show firm
demand in the week as more consumers sought cargoes, but deals were
hard to come by given ongoing financing struggles, sources said Friday.
Major utility Eren Energy announced earlier in the week a tender for
3.75 million mt for delivery over Q4 and Cal-19.
Sources said this tender signaled the acceptance from major buyers
who had been running short in the hope of government approval of
importing high sulfur US coal; however, since the recent tariff hike on US
coals, producers have not been able to look into procuring US cargoes.
Cement plant Medcem was in the market for three 40,000 mt cargoes
for Q4, to which was reported to have been concluded at $104/mt.
Sources speculated owing to the import tax of 13.7% on US coal,
South African or Russian coal was likely to have fulfilled the tender.
A European trader pegged freight from the Baltic to Turkey for a
Panamax vessel at around $16-$17/mt, with freight for smaller vessels
out of the Black Sea at around $8-$10/mt.
The trader said despite the high burn and firm demand in Turkey,
traders had been finding it hard to finance deals into Turkey owing to
the ongoing political and economic turbulence within Turkey.
“Banks are not happy to make business in Turkey,” said the trader.
The source said the result of the Medcem tender was very low,
explaining he offered around $110/mt on a CIF basis, given the physical
CIF ARA prices had been drifting around the $100/mt level and the
tender was for a relatively small volume.
S&P Global Platts assessed the CIF Turkey, 6,000 kcal/kg NAR
90-day price at $105/mt, an increase of $1.50 on the week.
Egypt demand for Q4 low
A European trader said demand from Egypt was low for Q4 as
buyers had been fulfilled by contracts. The source said there had been
some interest for Q1, thought he believed the interest was more in the
form of buyers fishing for prices.
Further afield, the trader said Pakistan demand had been fairly flat
recently with buyers mainly looking to Indonesian coal; however, firming
FOB Kalimantan prices had been somewhat off-putting to buyers.
— Piers De Wilde
Thermal coal stockpiles at Indian power
plants at lowest since December: CEA
London—Thermal coal stocks at Indian power plants fell to 11.76 million
mt as of Wednesday, down 13% week on week to the lowest level since
December, according to Central Electricity Authority data Friday.
Stocks were down 22% month on month but up 30% year on year.
Stockpiles of imported thermal coal also fell, down 21% week on
week to 394,000 mt on Wednesday.
Having averaged enough stock for 10 days of power generation for
most of the year, the number dropped to seven days in the week to
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Spot dry bulk freight assessments, Sep 21
Platts symbol $/mt Chg
Capesize
Australia-China CDANC00 8.95 -0.05
Queensland-Japan CIGAJ00 10.25 -0.05
New South Wales-Korea CINAK00 11.10 -0.05
Bolivar-Rotterdam CIBCR00 8.60 0.00
Roberts Bank-Japan CDRKJ00 10.85 -0.05
Richards Bay-Rotterdam CIRBN00 7.70 -0.05
Panamax
Richards Bay-India West CSAKL00 14.60 0.00
Kalimantan-India West CSAKP00 10.75 0.00
Richards Bay-India East CSAKN00 14.80 0.00
Kalimantan-India East CSAKR00 9.05 0.00
Richards Bay-Rotterdam CIRRN00 11.50 0.00
Richards Bay-Spanish Med CIRBT00 11.25 0.00
Richards Bay-Jorf Lasfar CIRBJ00 10.50 0.00
Bolivar-Rotterdam CIBRN00 15.00 0.00
USEC-India CDBUI00 33.00 0.00
USEC-Rotterdam CDBUR00 12.00 0.00
USEC-Brazil CDBUB00 12.00 0.00
Mobile-Rotterdam CDMAR00 16.00 0.00
Mobile-Taranto CDMAI00 14.50 0.00
Roberts Bank-Japan CDRBK00 17.05 0.00
Australia-China CDBFA00 14.40 0.00
Australia-India CDBFAI0 16.25 0.00
Coking coal swaps assessment, September 21
Platts symbol $/mt Chg % Chg
TSI Premium Hard Coking Coal Australia Export FOB East Coast Port
Oct-18 MCPLM01 197.920 +0.42 +0.21
Nov-18 MCPLM02 197.920 +0.92 +0.47
Dec-18 MCPLM03 197.920 +1.42 +0.72
Q4-18 MCPLQ01 197.920 +0.92 +0.47
Q1-19 MCPLQ02 197.460 +0.96 +0.49
Q2-19 MCPLQ03 189.920 +1.04 +0.55
2019 MCPLY01 187.220 +1.59 +0.86
Metallurgical coke, Sep 21
Seaborne
% CSR Platts symbol $/mt Chg % Chg
FOB North China 66/65 MCCNC00 367.00 -7.00 -1.87
CFR India 66/65 MCCNI00 384.50 -7.00 -1.79
FOB North China 62 AAWVL00 358.00 -7.00 -1.92
CFR India 62 MCCEI00 375.50 -7.00 -1.83
Domestic
Yuan/mt
DDP North China (weekly) 62 AAWVJ00 2480.00 0.00 0.00
$/mt
FOB North China equivalent (DDP weekly) 62 PLVHM04 369.11 -0.22 -0.06
Platts China PLV, met coke price differentials, Sep 21
Price spreads Platts symbol $/mt
Import-Shanxi Premium Low Vol CFR China PLVHK04 1.89
Import-port stock Premium Low Vol CFR China PLVHL04 8.20
62% CSR coke export-domestic FOB North China PLVHN04 -4.11
5
Coal Trader International Friday, September 21, 2018
Wednesday, significant in that maintaining at least 10 days worth of
stock is critical for the country’s coastal power plants.
Some states in India, such as Tamil Nada, struggled with a drop in
wind power generation recently, leading to increased coal burn in the
week to Wednesday.
Stocks levels were lowest in the country’s Eastern region, where
1.2 million mt was enough for four days of power generation.
Nationwide, the number of coal power plants with critical or super-
critical stock levels rose to 17 from 15 a week earlier, and were last at
that level at the end of July.
— Joseph Clarke
US miner Peabody Energy to acquire
Shoal Creek coking coal mine for $400 mil
Pittsburgh—US coal miner Peabody Energy said Friday it has agreed to
acquire the Shoal Creek coking coal mine for $400 million from private
mining group Drummond Co.
Peabody said it planned to close the acquisition of the Alabama
coking coal mine, with 2.1 million st of sales in 2017, by the end of the year.
Peabody has assets in Australia serving the coking coal, PCI and
thermal markets, as well as US domestic coal mines. The St. Louis-
based group will use cash from its balance sheet to purchase the mine,
preparation plant and supporting assets, and the transaction excludes
legacy liabilities other than reclamation, it said.
“The current mine plan accesses 17 million mt of reserves under a
minimal-capital plan,” using longwall mining in both the Blue Creek and
Mary Lee coal seams, Peabody said in a statement.
“Shoal Creek’s mining costs per ton approximate the average cost
of Peabody’s metallurgical coal platform.”
Peabody said Shoal Creek coal “typically prices at or near the high-
vol A index.”
A buyer commented Shoal Creek was recently sold spot on a
fixed-price basis, with the Platts US high-vol A HCC price index prices
as a reference.
Shoal Creek is sold into Europe, Japan and other markets as a mid-
to-high volatile matter coal with higher CSR and fluidity than typical for
the US.
— Hector Forster
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
Monthly and Quarterly Averages for Platts Forward
Benchmark Coal Price Assessments ($/mt)
CV (kcal/kg) Basis Aug-18 Jul-18 Jun-18 Q2-18 Q1-18
NEAT Coal Index 5,750 NAR 83.92 93.68 101.55 95.39 103.35
CIF ARA 6,000 NAR 98.06 100.27 NA NA NA
FOB Richards Bay 5,500 NAR 79.35 87.83 87.83 85.11 78.42
FOB Newcastle 20% Ash 5,500 NAR 64.99 74.36 81.02 75.84 83.26
FOB Newcastle 23% Ash 5,500 NAR 63.32 72.45 78.95 73.90 81.13
FOB Newcastle 6,300 GAR 118.29 120.74 NA NA NA
FOB Kalimantan 5,900 GAR 77.68 82.96 83.46 79.27 85.63
FOB Kalimantan 5,000 GAR 57.44 66.34 67.40 63.98 70.06
FOB Kalimantan 4,200 GAR 39.32 47.24 48.47 44.79 48.34
FOB Kalimantan 3,800 GAR 32.56 38.47 38.41 35.79 38.80
CFR India West 5,500 NAR 93.63 101.49 101.08 97.78 91.44
CFR India West 5,000 GAR 67.76 76.26 77.93 74.22 79.82
CFR India West 4,200 GAR 50.41 58.01 59.85 55.88 58.95
CFR India West 3,800 GAR 44.66 50.51 51.17 48.24 49.57
CFR India East 5,500 NAR 93.98 101.84 101.43 98.13 91.83
CFR India East 5,000 GAR 66.86 75.41 76.88 73.22 78.93
CFR India East 4,200 GAR 48.75 56.31 57.95 54.03 57.21
CFR India East 3,800 GAR 42.58 48.74 49.10 46.31 47.93
CIF Turkey 6,000 NAR 102.10 103.13 99.60 94.50 97.00
FOB Colombia 6,000 NAR 90.10 93.44 89.70 84.25 80.81
Russia Baltic* 6,000 NAR 92.29 95.33 90.76 85.10 80.95
Russia Pacific 6,300 GAR 120.20 121.20 114.00 106.08 102.19
*Assessed on a 6,400 kcal/kg GAR basis before January 2, 2015. See methodology for further details.
Asia met coal prices still soft with
pre-holiday buying expected next week
Singapore —Asia-Pacific spot metallurgical coal prices were weaker
day on day Friday as buying was expected to pick up next week ahead
of Golden Week holidays.
S&P Global Platts assessed Premium Low Vol coal down 25 cents
to $205.25/mt FOB Australia, while the CFR China price fell $2.50/mt to
$212.50/mt Friday.
In China, a tender will be issued next week for Panamax-size
Premium Low Vol and Premium Mid Vol cargoes, for November and
December laycans, according to market sources. The tender is
understood to have sellers’ option to deliver Peak Downs or Saraji for
Premium Low Vol, and Riverside, Goonyella, Goonyella C and Peak
Downs North for Premium Mid Vol. However, no date was heard to be
set for the tender.
Market participants were relatively surprised to hear December
cargo availability so soon. “Maybe this has something to do with the
relaxation of winter [output] cut policies,” a trader said. Tangshan city,
a steelmaking hub in northern China’s Hebei region, has officially
released its output cut plans for the winter season. Mills who had
upgraded their facilities to meet emission standards could be
exempted from the cuts.
With China’s Golden Week holiday drawing nearer, as well as the
Mid- Autumn Festival to be held Monday in the country, restocking
activities could be expected mid- to late next week, market
sources said.
Bids and offers continued to maintain a wide gap Friday, with market
6
Coal Trader International Friday, September 21, 2018

Platts daily metallurgical coal assessments, Sep 21

Asia-Pacific coking coal ($/mt)
Platts FOB Change Platts CFR Change Platts CFR Change
symbol Australia symbol China symbol India
HCC Peak Downs Region HCCGA00 207.25 -0.25 HCCGC00 214.50 -2.50 HCCGI00 223.50 -0.25
Premium Low Vol PLVHA00 205.25 -0.25 PLVHC00 212.50 -2.50 PLVHI00 221.50 -0.25
HCC 64 Mid Vol HCCAU00 178.60 -1.00 HCCCH00 193.00 -1.00 HCCIN00 194.85 -1.00
Low Vol PCI MCLVA00 130.10 -0.50 MCLVC00 144.50 -0.50 MCLVI00 146.35 -0.50
Mid Tier PCI MCLAA00 129.10 -0.50 MCLAC00 143.50 -0.50 MCVAI00 145.35 -0.50
Semi Soft MCSSA00 123.35 -0.25 MCSSC00 137.75 -0.25 MCSSI00 139.60 -0.25
TSI coking coal indices ($/mt)
TSI Premium Hard (PHCC) FOB Australia TS01034 204.80 +0.80
TSI Hard FOB Australia TS01035 178.60 -1.00
TSI Prem JM25 CFR Jingtang TS01044 212.50 -2.50
TSI Hard JM25 CFR Jingtang TS01045 193.00 -1.00
Atlantic coking coal ($/mt)
Platts FOB US
symbol East Coast Change VM Ash S
Low Vol HCC AAWWR00 192.00 0.00 19% 8% 0.80%
High Vol A AAWWS00 201.00 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 218.25 -0.25 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 1590 PCCMB04 1625 PCCMC04 1850 PLVHJ04 215.11
PCC Met Shanxi High Sulfur Premium Low Vol PCCMD04 1150 PCCME04 1185 PCCMF04 1410
PCC Met North China Fat Coal — — PCCMG04 1510
PCC Met Shanxi PCI PCCMH04 930 PCCMI04 965 PCCMJ04 1155
PCC Met Shandong Semi Soft PCCMK04 1010 PCCML04 1030 —

PCC Met Rail Freight Shanxi – Tangshan PCCMM04 230

PCC Met Truck Freight Shanxi – Tangshan PCCMO04 260
*Weekly (assessed September 19).

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 1650.00 AAWZO00 204.30
HCC 64 Mid Vol* AAWZP00 1540.00 AAWZQ00 190.43
*Weekly (assessed September 21), 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 1.03
Per 1% VM (air dried) 18-27% CPVPA00 0.50% CPVMP00 1.03
Per 1% TM (as received) 8-11% CPTPA00 1.00% CPTMP00 2.05
Per 1% Ash (air dried) 7-10.5% CPAPA00 1.50% CPPAP00 3.08
Per 0.1%S (air dried) 0.3-1% CPSPA00 1.00% CPSPV00 2.05
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 0.96
40-49% CPPBC00 0.35% CPPBD00 0.67
Per 0.1% S 0.70-1.05% CPPBE00 0.75% CPPBF00 1.44
1.06-1.25% CPPBG00 1.10% CPPBH00 2.11
Per 1% TM (as received) 6-11% CPPBK00 1.00% CPPBL00 1.92
Per 1% Ash 5-10% CPPBI00 1.75% CPPBJ00 3.36
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 Friday, September 21, 2018

Platts daily Asia Pacific metallurgical coal relativities – September 21, 2018
September 21 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 71 214.50* 100.94%
*Peak Downs FOB Australia (China netback) after accounting for Haypoint-Qingdao Panamax freight = $200.10/mt
Saraji 72 18.50 10.00 10.50 0.60 0.03 160 66 212.50 100.00%
Premium Low Vol 71 21.50 9.70 9.30 0.50 0.045 500 65 212.50** 100.00%
**Premium Low Vol FOB Australia (China netback) after accounting for Haypoint-Qingdao Panamax freight = $198.10/mt
German Creek 70 19.00 10.50 9.50 0.54 0.06 180 70 212.00 99.76%
Illawarra 73 23.50 10.00 9.50 0.45 0.06 2000 58 207.50 97.65%
Moranbah North 68 23.30 10.00 8.50 0.50 0.04 1800 58 207.50 97.65%
Oaky North 70 20.50 10.00 9.50 0.65 0.065 700 80 211.25 99.41%
Goonyella 68 23.40 10.00 8.90 0.52 0.03 1100 62 207.50 97.65%
Goonyella C 70 23.50 10.00 9.80 0.55 0.04 1200 62 204.50 96.24%
Peak Downs North 68 22.80 10.50 9.80 0.51 0.05 900 63 204.50 96.24% 105.96%
Standard 70 22.50 9.00 9.50 0.45 0.06 150 53 205.00 96.47% 106.22%
Premium 70 25.50 9.00 8.80 0.50 0.07 300 56 205.00 96.47% 106.22%
Hail Creek 69 20.50 10.00 10.00 0.30 0.07 300 54 201.50 94.82%
HCC 64 Mid Vol 62 21.50 10.50 8.00 0.450 0.06 100 52 193.00 90.82% 100.00%
Lake Vermont HCC 62 21.50 11.00 7.50 0.44 0.07 120 50 193.00 100.00%
Carborough Downs 58 22.50 11.00 8.00 0.35 0.04 30 44 191.50 99.22%
Middlemount Coking 57 19.00 10.00 10.00 0.50 0.045 50 183.00 94.82%
Poitrel Semi Hard 45 24.00 12.00 8.00 0.43 0.05 300 54 181.00 93.78%
September 21 freight rates. Australia to China: Panamax = $14.40/mt Capesize = $8.95/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

Platts weekly metallurgical coal relativities table September 21, 2018

CSR VM TM Ash S P Fluidity Vit % September 21, FOB Spread
d ar d d d ddpm Hampton Roads vs US LV

Oak Grove 70.5 21.75 8 9.3 0.56 900 65.2 206.00 107.29%
Blue Creek No. 7 72 21 9 9.75 0.8 0.04 1,100 69.6 206.00 107.29%
Blue Creek No. 4 66 25.25 9 9.75 0.8 0.035 12,000 69 203.00 105.73%
Beckley 62 16.75 7.5 7 0.82 50 68.6 196.00 102.08%
Low Vol FOB USEC* 58 19.38 8 8.16 0.82 192.00 100.00%
Windber 51.2
16.5 8 7 1 25 188.00 97.92%
Buchanan 40 18.68 7 5.26 0.73 100 189.00 98.44%
Pinnacle 43 15.8 8 7 1 0.014 7 68 187.00 97.40%
September 21 Panamax freight rates. Hampton Roads to Rotterdam = $12.00/mt, Hampton Roads to Brazil = $12.00/mt, Mobile to Rotterdam = $16.00/mt.
d = dry; ar = as received; CSR = coke strength after reaction; ddpm = dial divisions per minute. *assumes inherent moisture of 2% for ad/d conversion.
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 Friday, September 21, 2018
participants hoping to get more clarity from the tender results next week.
Markets outside of China were relatively quiet Friday, with the
highest bid indicated at $200/mt FOB Australia for Premium Mid Vol
Illawarra. Market participants also said they did not see any strong
demand from India.
PCI offer at $145/mt CFR China
In the PCI segment, an offer was indicated around $145/mt CFR
China for an 80,000 mt cargo of Low Vol PCI Coppabella, October 5-14.
The highest bid indicated was at $140/mt CFR China for the same type
of PCI. A buyer said despite the closure of domestic wash plants, he
does not expect this situation to affect his procurement price.
In the met coke segment, two trades were concluded around
$342-$343/mt FOB China for Chinese 62/60% coke, 25,000 mt cargo
each, with a mid- to late October laycan. Market participants had mixed
reactions to the repeatability and representativeness of the trade, with
a seller source placing a $10/mt spread between Chinese 62/60% coke
and Chinese 64/62% coke.
A seller source said with coke prices softening, he would indicatively
offer Chinese 64/62% coke at $360/mt FOB China. Another seller source
would indicatively offer Chinese 65% coke around $375/mt FOB China.
Buyer sources also said a tradable value would be at $358-$370/mt
FOB China for Chinese 65% coke.
Meanwhile, steel mills in northern China proposed to drop met coke
prices by Yuan 100/mt. This brings the total price cut of two rounds to
Yuan 200/mt.
— Yi Le Weng
Hard Coking Coal (Premium Low Vol)
FOB Australia Assessment Rationale
Platts assessed Premium Low-Vol HCC down 25 cents to $205.25/mt FOB
Australia Friday.The highest bid indicated was at $200/mt FOB Australia for an
Australian Premium Mid-Vol Illawarra. This was for a coal assessed at $1.25/mt
discount to 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
Hard Coking Coal (Premium Low Vol)
CFR China Assessment Rationale
Platts assessed Premium Low-Vol HCC down $2.50/mt to $212.50/mt CFR China
Friday. The most competitive offer indicated was at $210/mt CFR China for an
Australian Semi-Premium Peak Downs North, 85,000 mt, with October 1-20
laycan. This was for a coal assessed at $8/mt discount to Platts PLV CFR China.
The highest bid indicated was at $200/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)
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© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
PCC assessments publishing
schedule for Mid-Autumn Festival
Due to the Mid-Autumn Festival holiday in China on Monday, September 24,
2018, the Platts China Coal, or PCC, assessments will not be published on that
day as these prices, according to S&P Global Platts methodology, are assessed
on a Beijing timestamp basis.
Normal PCC publishing schedule will resume on Tuesday, September 25.
For full details of Platts publishing schedule and services affected, refer to
http://www.platts.com/holiday.
For queries, please contact support@platts.com.
Platts decides to replace German/Austrian power
futures with Germany-only futures from Oct 1, 2018
Following industry consultation, S&P Global Platts has decided to replace the
use of EEX German/Austrian (DE/AT) power price component in several tables
and publications with Germany-only (DE-only Phelix) settlement prices from
October 1, 2018 due to the German/Austrian price zone split and a shift to the
DE-only futures as the new German reference exchange product. Platts has
decided to use DE-only Phelix power prices to derive the German Spark and
Clean Spark spreads, German Dark and Clean Dark spreads, Generating Fuel
Costs Comparisons and Platts West Africa Crude Market Parity Price. All the
affected fixed pages are listed below:
EP0067, EP0068: European Energy Exchange Phelix Futures (Eur/MWh)
EP0503: Efficiency-adjusted Platts Cross-Fuel Comparisons
EP0220, GC0900, EP0222, GC0902: Platts German Dark Spreads (Eur/MWh)
EP0641, NG0834, EP0668, NG0835: Platts German spark spreads (Eur/MWh)
EP0502: Efficiency-adjusted Platts Cross-Fuel Comparisons
MH1270: Platts West Africa Crude Market Parity Price
The spark and dark spread indicators are published in European Power Daily,
Power in Europe, European Gas Daily, Coal Trader International.
For further information regarding the exchange symbols or for any comments
and queries, please contact Platts at power@spglobal.com with copy to
pricegroup@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.
Yuan weakness weighs
on China imports market ... from page 1
holiday on Monday, sources said Friday.
The yuan slipped to Yuan 6.8 to $1 on Friday from Yuan 6.3 in April, and
this has affected the buying power of Chinese importers, sources said.
“So, if the [yuan] depreciates further you could have a situation
where FOB denominated prices do not benefit to the same extent,” a
market source said.
The weaker yuan may persuade Chinese buyers to source thermal
coal from the domestic market, but higher local prices may reduce the
competitiveness of domestic coal, sources said.
“With domestic levels going higher, how much of a knock-on effect
it will have on imports needs to be seen,” a market source said.
There are signs of an uptick in domestic thermal coal prices in
China as offers reached Yuan 640/mt FOB Qinhuangdao for the 5,500
kcal/kg NAR grade, after dipping midweek, sources said.
“Even at Yuan 635/mt, it’s expensive,” a trader said.
9
Coal Trader International Friday, September 21, 2018
Restrictions at Qinhuangdao port are causing some supply
tightness for the domestic thermal coal market as is some routine
maintenance on the Datong-Qinhuangdao rail link.
A source said that this was bullish for the domestic thermal coal
market as were adequate stocks at power plants, the onset of winter,
mine safety and environmental checks.
“The sense I got was that most buyers feel prices could go higher,”
a market source said.
As a result, it could be a question of when, rather than if, China will
decide to relax its stringent controls on imports of thermal coal at
some of its ports, sources said.
Australian cargoes
Buying interest from China for Australian thermal coal was steady
on Friday ahead of next week’s public holiday.
Australian 5,500 kcal/kg NAR thermal coal for shipment in late
October to November saw bids from China at $65/mt, almost flat on
the day, sources said.
A Singapore-based trader said that while the number of offers for
Indonesian cargoes had increased, inquiries were fewer.
“The 3,800 NAR market will not collapse, but it’s just surviving,”
he said.
Another Singapore-based trader said that demand was picking up
in Vietnam and India.
“In Vietnam, they are buying the 4,200 GAR grade as prices are
now lower, but it’s still not easy for bigger miners to go into Vietnam
due to logistics [issues],” he said
A Thai trader said that he had concluded a deal for two geared
vessel shipments of 5,100 kcal/kg GAR coal with 5% ash and 0.4%
sulfur for loading in October and November at $58.10/mt FOB.
“These are premium coals, so we always pay a few dollars
premium,” he said, though market sources put $58.10/mt FOB as much
above current levels.
Kalimantan prices
A major Indonesian producer pegged the price of 5,000 kcal/kg
GAR coal at about $57.65/mt FOB and 5,900 kcal/kg GAR coal at about
© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
$78.30/mt FOB, both flat week on week.
An Indonesia-based trader said that he hoped to close a deal for a
1.6% sulfur, geared vessel cargo of 5,000 kcal/kg GAR for October
loading at about $52.50/mt FOB.
Demand for lower-cv coal was also strong, with offers for 4,200
kcal/kg GAR coal at $40/mt FOB levels, he said.
“The weak Indian rupee is playing a major role in deterring spot
deals,” a trader in India said.
He had bought a cargo of 5,100 kcal/kg GAR with 1.2% sulfur at
$54/mt FOB Kalimantan, he said, but did not provide additional details.
Tenders issued by various Indian utilities add up to about 20 million
mt of potential thermal coal demand, and were yet to be awarded, he
said.
South African 5,500 kcal/kg NAR coal was being offered at a
discount of $17-$18/mt to 6,000 kcal/kg NAR price, while 4,800 kcal/kg
NAR was offered at minus $29-$30/mt, he added.
— Michael Cooper, Hui Min Lee, Deepak Kannan
Platts Coal NEAT Index Daily Assessment Rationale
Singapore—The Northeast Asia Thermal coal index was assessed Friday at
$89.38/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 $66.50/mt FOB Newcastle, and the Newcastle 5,500 kcal/kg NAR price
on a 20% ash basis at $68.25/mt FOB. Platts used its ash differential for this
Australian thermal coal, which has a current market value of 58 cents per 1%
ash basis, to derive a price for 5,750 kcal/kg NAR coal with 15% ash at about
$74.16/mt FOB. Panamax freight from Newcastle to Kinuura was indicated at
$15.22/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 Daily Rationale
Singapore—S&P Global Platts assessed the 7-45 day price of FOB Kalimantan
4,200 kcal/kg GAR coal at $38.40/mt Friday, unchanged from Thursday.
Offers for geared vessel cargoes loading in October were heard at $39-$40/mt
FOB, while no firm bids were reported during Asian trade hours.
No data was excluded from the assessment.This rationale applies to the
symbol: CSBKI00
10
Coal Trader International Friday, September 21, 2018

Current Vessel Fixtures

Vessel Quantity (Mt) Origin/Destination Loading Dates Rate Charterer
Australia
GNS TBN 140,000 Newcastle/Dangjin Oct 10-19 11.33 KEPCO
GNS TBN 140,000 Gladstone/Dangjin Oct 16-25 9.93 KEPCO
GNS TBN 140,000 Newcastle/Dangjin Oct 16-25 11.33 KEPCO
GNS TBN 140,000 Gladstone/Dangjin Oct 21-30 9.93 KEPCO
TBN 130,000 Newcastle/Zhoushan Oct 1-10 10.80 China Coal Solution
TBN 75,000 Gladstone/East Coast India Sep 27- Oct 6 17.80 SAIL
Canada
TBN 75,000 Vancouver/Gangavaram Sep 26-Oct 5 20.90 RINL
TBN 75,000 Vancouver/East Coast India Sep 17-26 22.85 SAIL
Navios Azimuth 150,000 Roberts Bank/Huadong Aug 31-4 Sep 14.42 KEPCO
Panocean TBN 160,000 Roberts Bank/Dangjin Aug 15-24 13.36 KEPCO
Genco Commodus 165,000 Neptune Terminal/Pohang Aug 1-10 11.11 POSCO
CCL TBN 150,000 Roberts Bank/Mailiao Jul 5-14 10.10 Pacific Bulk
Colombia
Cargill Tbn 160,000 Puerto Bolivar/Carboneras end Sept/early Oct C7 linked Endesa
Berge Weisshorn 160,000 Puerto Bolivar/Gijon Sep 1-10 11.90 Jera
NYK TBN 160,000 Puerto Bolivar/Rotterdam Aug 21-30 12.50 Uniper
ECTP TBN 150,000 Puerto Bolivar/Rotterdam Aug 4-13 12.25 Oldendorff
NYK TBN 160,000 Puerto Bolivar/Rotterdam Aug 1-10 12.60 Glencore
Indonesia
TBN 75,000 Taboneo/East India Oct 1-10 9.95 SAIL
TBN 75,000 Taboneo/Dalian Sep 18-22 8.75 CNBM
TBN 75,000 Taboneo/Gangavaram Sep 21-30 8.10 RINL
TBN 70,000 Indonesia/Mauban Aug 20-29 5.40 LSD Bulk
TBN 70,000 Samarinda/Yuhuan Jul 21-30 6.65 Leading Resource
TBN 70,000 East Kalimantan/West Coast India Jul 15-19 9.00 LSS
Latvia
Panther Max 75,000 Riga/Hansaport Sep 13-17 7.95 Vattenfall
Swiss Marine TBN 70,000 Riga/Ijuiden Sep 15-19 7.60 TS Global Procurement
Mondial Iris 75,000 Riga/North China Jul 7-10 31.00 Sibanthracite
Nordic TBN 75,000 Riga/Hansaport Jun 18-22 6.50 Vattenfall
Norway
Uniper 60,000 Mo-I-Rana/Imjuiden Sep 28- Oct 2 7.30 TS Global Procurement
Swiss Marine TBN 60,000 Mo-I-Rana/Imjuiden Jul 31- Aug 5 8.10 TS Global
South Africa
Bunge TBN 150,000 Richards Bay/ Gangavram Aug 10-19 10.50 Tata
Oldendorff TBN 150,000 Richards Bay/ Gangavram Aug 10-19 12.10 Trafigura
Golden Nimbus 150,000 Richards Bay/Krishnapatnam Jul 10-19 10.25 DHL
Swiss Marine TBN 150,000 Richards Bay/Krishnapatnam Jul 10-19 10.75 Tata
Dong-A Tanker TBN 140,000 Richards Bay/Dangjin Jun 21-25 12.67 KEPCO
United States
NYK TBN 130,000 Baltimore/Kwangyang Oct 8-17 35.48 POSCO
SwissMarine TBN 120,000 Baltimore/Kandla Sep 28-Oct 10 28.00 Uniper
TBN 75,000 Hampton Roads/Ijmuiden Sep 23-27 12.05 TS Global Procurement
TBN 75,000 CMT/Rotterdam Sep 16-20 15.75 Uniper
Cargill TBN 75,000 Mobile/Rotterdam Sep 15-25 15.10 TKSE
Gencore TBN 70,000 Mobile/Hamburg Sep 5-15 17.25 Salzgitter
Mozambique
TBN 38,000 Beira/East Coast India Sep 18-23 26.20 SAIL
TBN 38,000 Beira/East Coast India Sep 15-20 27.25 SAIL
Japanese TBN 165,000 Nacala/Japan Jul 27-31 17.35 Vale
Brazil
Oldendorff TBN 180,000 Ponta Da Madeira/Rotterdam Jun 20-Jul 3 6.80 TKSE
Russia
TBN 75,000 Ust Luga/Rotterdam Sep 23-25 7.50 Suek
GNS 145,000 Vanino/Hadong Aug 26-30 6.25 KEPCO
Oldendorf TBN 80,000 Vostochny/Hazira Sep 1-10 12.10 Avani
TBN 75,000 Murmansk/Rotterdam Aug 17-19 7.25 Suek
TBN=To be nominated. PPT=Prompt

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 11
COAL TRADER INTERNATIONAL ANALYTICS
Friday, September 21, 2018

Global coal demand remains robust, with persistent Y/Y growth in European coal burn despite elevated carbon pricing. Strength in European gas
and power pricing has fostered sizable growth in coal demand in all major Western European coal markets, particularly in Germany. Stockpiles at
ARA are well above prior-year levels, although this build-up has largely been a result of low water levels on the Rhine, limiting transportation from
the port, although there has been a surge in off-spec coal flowing into the European market. Coal consumption has also been strong in China,
although stockpiles at both ports and key power plants remain well above prior-year levels. Similar to Europe, the increase in port stockpiles in
China has been driven by logistical constraints, with a recent cap being placed on coal loadings at Qinhuangdao.

The reopening of the port of Hampton Roads in the U.S. following Hurricane Florence will see U.S. supply volumes move back to elevated levels as
the most U.S. coals can price into the seaborne thermal coal market.

ASIA
GUANGZHOU STOCKPILES ('000 mt) QINHUANGDAO STOCKPILES ('000 mt)

CHINA STOCKPILES ('000 mt)

Port 14-Sep 15-Sep 16-Sep 17-Sep 18-Sep 19-Sep 20-Sep MoM Change YoY Change
Qinhuangdao 6,420 6,420 6,420 7,075 7,210 7,690 7,800 1,395 2,260
Guangzhou 2,375 2,375 2,375 2,375 2,199 2,208 2,128 -223 -305
TOTAL 8,795 8,795 8,795 9,450 9,409 9,898 9,928 1,172 1,955

SCHEDULED EXPORTS FROM KALIMANTAN, TOP DEPARTURE DESTINATIONS FROM KALIMANTAN,

INDONESIA ('000 mt) INDONESIA ('000 mt)

SCHEDULED EXPORTS FROM KALIMANTAN BY DESTINATION ('000 mt)

08-Sep 09-Sep 10-Sep 11-Sep 12-Sep 13-Sep 14-Sep Week Total WoW Change
CHINA 94 184 86 207 212 169 166 1,118 809
INDIA 146 118 152 105 55 219 267 1,062 813
INDONESIA 70 0 63 107 105 66 71 481 306
KOREA 0 77 0 168 0 81 0 326 250
MALAYSIA 0 74 0 77 0 70 0 221 148
VIETNAM 0 0 52 31 56 0 0 139 139
TOTAL 322 475 436 788 494 676 570 3,760 2,566
Source: PT Indo Dharma Transport Does not include Tanjung Bara Coal Terminal

ANALYTICS REPORT
COAL TRADER INTERNATIONAL

ASIA CONTINUED
INDIA COAL IMPORTS/ARRIVALS ('000 mt) INDIA COAL IMPORTS BY TYPE ('000 mt)

INDIA TOP RECEIVERS ('000 mt) INDIA COAL IMPORTS BY TYPE ('000 mt)
Week YoY
09-Sep 10-Sep 11-Sep 12-Sep 13-Sep 14-Sep 15-Sep Total Change
Anthracite 78 0 35 0 0 0 0 113 0
Coking Coal 88 179 111 115 106 0 327 925 95
Petcoke 22 51 0 38 0 0 0 111 0
Steam Coal 409 743 648 378 511 323 529 3,542 292
TOTAL 597 973 794 531 617 323 856 4,691 387

AUSTRALIA
SCHEDULED EXPORTS FROM AUSTRALIA BY PORT/COAL TERMINAL ('000 mt)

Port 21-Sep 22-Sep 23-Sep 24-Sep 25-Sep 26-Sep 27-Sep Week Total WoW Change
ABBOT POINT 160.175 141.232 183.742 0 0 0 0 485 73
BRISBANE 79.6 60.15 0 0 0 55 0 195 126
GLADSTONE 169.435 370.9 82.287 182.05 0 0 0 805 -340
HAY POINT & DBCT 224.5 420.732 338.823 357.536 545.528 338.6 482 2,708 294
NEWCASTLE 279.286 454.03 362.249 320.879 503.072 256.509 544.982 2,721 597
PORT KEMBLA 0 0 0 70 75 0 0 145 -90
TOTAL 912.996 1,447.044 967.101 930.465 1,123.6 650.109 1,026.982 7,058 660

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 2
COAL TRADER INTERNATIONAL

EUROPE
EMO ROTTERDAM STOCKPILES ('000 mt) OBA AMSTERDAM STOCKPILES ('000 mt)

OVET VLISSINGEN STOCKPILES ('000 mt) ATLANTIC MARKET STOCKPILES ('000 mt)
WoW
20-Aug 27-Aug 03-Sep 10-Sep 17-Sep Change YoY Change
EMO Rotterdam 3,500 3,400 3,300 3,300 3,300 0 900
OBA Amsterdam 1,600 1,600 1,590 1,700 1,750 50 0
OVET Vlissingen 325 480 510 475 430 -45 150
Total Stocks 5,425 5,480 5,400 5,475 5,480 5 1,050

EUROPEAN COAL FIRED GENERATION (MWh)

EUROPEAN COAL FIRED GENERATION (MWh)

Port 13-Sep 14-Sep 15-Sep 16-Sep 17-Sep 18-Sep 19-Sep Week Total WoW Change YoY Change
Czech 42,796 51,088 43,647 52,710 54,027 52,651 53,749 352,717 94,888 -89,779
France -161 -232 7,134 11,972 12,098 15,322 21,262 67,395 46,114 5,652
Germany 711,114 631,314 479,652 501,722 625,722 606,777 619,460 4,205,099 166,999 216,743
Netherlands 62,421 61,679 55,303 46,861 57,284 63,773 71,451 422,294 20,337 125,056
UK 20,731 13,886 13,824 16,600 19,552 15,350 8,714 125,108 26,496 8,352

source: EEX, BMRS, RTE

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 3
COAL TRADER INTERNATIONAL

WEATHER
WEATHER FORECAST
Supply Center 22-Sep 23-Sep 24-Sep 25-Sep 26-Sep 27-Sep 28-Sep
AUSTRALIA - New South Wales
High Temperatures 21.8 21 16.7 17.2 19.2 21.1 20.5
Low Temperatures 5.3 7.4 8 7 6.2 8.1 8.6
Precipitation 0 0.002 0.002 0.005 0.005 0 0
AUSTRALIA - Queensland
High Temperatures 26.7 27.1 27.3 26.8 27.6 27.7 28.6
Low Temperatures 17.2 17.3 16.9 18.1 18.2 18.2 18.8
Precipitation 0 0 0 0.002 0 0.006 0
COLOMBIA - La Guajira
High Temperatures 31.1 30.2 31 30.6 31.2 31.2 28.8
Low Temperatures 26.3 26.1 26 26.3 25.5 25.4 25.2
Precipitation 0.03 0.03 0.01 0.01 0.01 0.04 0.05
INDONESIA - Kalimantan
High Temperatures 32.8 31.8 31.4 31.1 31 31.5 30.8
Low Temperatures 24 24.3 24.5 24.7 24.7 24.8 24.9
Precipitation 0.002 0.012 0.02 0.027 0.022 0.022 0.03
NORTH CHINA
High Temperatures 22.6 23 22.7 22.7 22.6 22.8 23.5
Low Temperatures 11.9 12.2 13.4 14 14.7 14.5 13.8
Precipitation 0.002 0.002 0 0 0.002 0.004 0
RUSSIA EAST
High Temperatures 16.3 16.7 16.4 15.9 17.4 18.7 18.8
Low Temperatures 10.4 8.9 8 6.8 5.9 6.8 9
Precipitation 0.015 0.025 0.015 0.005 0 0 0.005
RUSSIA WEST
High Temperatures 16.1 11.3 7.7 5.2 7.3 7.7 6.8
Low Temperatures 8.1 7.9 3.9 1.5 0.9 4.1 2.7
Precipitation 0.02 0 0 0.01 0 0.01 0

TEMPERATURES / HDD / CDD

Demand Center 22-Sep 23-Sep 24-Sep 25-Sep 26-Sep 27-Sep 28-Sep
CHINA SOUTH
High Temperatures 31 30 30 29 29 30 30
Low Temperatures 25 25 25 24 23 23 24
HDD 0 0 0 0 0 0 0
CDD 17 16 15 14 14 14 15
INDIA EAST
High Temperatures 32 32 33 32 32 33 33
Low Temperatures 26 26 28 28 28 28 28
HDD 0 0 0 0 0 0 0
CDD 18 19 21 21 21 21 21
INDIA NORTH
High Temperatures 26 30 31 31 32 36 35
Low Temperatures 23 25 25 25 25 26 27
HDD 0 0 0 0 0 0 0
CDD 11 16 17 17 18 22 23
INDIA WEST
High Temperatures 30 29 30 31 32 33 33
Low Temperatures 28 26 26 26 27 27 27
HDD 0 0 0 0 0 0 0
CDD 18 16 17 18 19 20 20
NORTH WEST EUROPE
High Temperatures 17 20 17 18 21 21 19
Low Temperatures 10 11 10 9 10 12 11
HDD 9 7 10 9 5 4 6
CDD 1 1 1 0 1 1 1

This report is based on data that S&P Global Platts Analytics considers reliable at the time it is distributed, but S&P Global Platts Analytics does not represent it is accurate or complete, and it should not be relied on as
such. Assumptions, estimates and opinions expressed in the report constitute S&P Global Platts Analytics' judgment as of the date the report is distributed, and they are subject to change without notice. S&P Global
Platts Analytics disclaims any responsibility or liability to the fullest extent permitted by applicable law, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage
arising from any reliance on or the use of the report in any way. This report does not constitute the provision of investment advice.

© 2018 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 4