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COAL TRADER INTERNATIONAL

Volume 21 / Issue 171 / Monday, September 6, 2021

Rains impact Kalimantan thermal coal DAILY PROMPT PHYSICAL THERMAL COAL ASSESSMENTS, SEP 6

production, offer prices shoot north CV (kcal/kg) Window Platts symbol $/mt Chg

Asia-Pacific
■■Kalimantan laycan delayed Northeast Asia
■■Qinhuangdao stockpiles inch lower Platts NEAT 5,750 NAR 15-60 day JKTCA00 136.50 -0.76

■■Indian demand tepid for seaborne coal South Asia

Platts SEAT 4,200 GAR 15-60 day CSEAA00 95.75 -1.20
CFR Pakistan 5,750 NAR 30-60 day TPKCA00 135.00 -0.80
Offer prices for Indonesian thermal coal headed north as heavy rains in CFR Bangladesh 5,000 GAR 30-60 day TCBAN00 129.05 -1.20
South and East Kalimantan provinces disrupted operations at several Sulfur Differential TCSDA00 0.30

thermal coal mines amid existing supply tightness, sources said Sept. 6.
Offers for Indonesian 4,200 kcal/kg GAR coal were heard at $77-
$80/mt FOB levels, on Supramax basis, for September/October-loading
(continued on page 11)
NEWS HEADLINES
China
PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPQ00 94.35 -0.40
PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPP00 124.00 -0.40
PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSC00 148.65 -0.40
Yuan/mt
PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPR00 606.79 -2.01
PCC 6 (VAT included) 3,800 NAR 30-60 day PCCPS00 685.67 -2.27
PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPO00 797.48 -1.83
PCC 7 (VAT included) 4,700 NAR 30-60 day PCCFB00 901.15 -2.07
PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSD00 956.01 -1.69
PCC 8 (Duty & VAT included) 5,500 NAR 15-60 day PCCFA00 1080.29 -1.91

Thermal coal production in South Kalimantan Indonesia

takes a hit amid heavy rain
■■Emergency response status imposed until Sep. 17
■■Pt. Baramega Citra Mulia Persada declares force majeure
FOB Kalimantan (Geared Supramax) 4,200 GAR 7-45 day CSBKI00 77.55 +0.10
FOB Kalimantan (Geared Supramax) 3,800 GAR 7-45 day CSCKJ00 64.05 +0.10
FOB Kalimantan (Geared Supramax) 5,900 GAR 90-day CSAKH00 134.10 +0.10
FOB Kalimantan (Geared Supramax) 5,000 GAR 90-day CSAKI00 107.20 +0.10
Kalimantan Floating Crane AKFCA00 2.00

Australia
Czech coal plant Pocerady’s mercury emission FOB Newcastle 20% Ash 5,500 NAR 7-45 day AAVUW00 101.75 +0.10
exemption confirmed FOB Newcastle 23% Ash 5,500 NAR 7-45 day AAVVB00 99.15 +0.10
FOB Newcastle Ash Differential AAVVA00 0.86
■■Environment ministry confirms exemption
India
■■Deadline for improved performance shortened
CFR India West (Gearless Panamax) 5,500 NAR 30-60 day CIWCI00 128.15 -0.70
CFR India West (Gearless Panamax) 5,000 GAR 30-60 day TCAKP00 128.05 -0.45
China’s carbon price hits record low CFR India West (Gearless Panamax) 4,200 GAR 30-60 day TCAKT00 98.40 -0.45

of $6.92/mt, liquidity falls CFR India East (Gearless Panamax)

CFR India East (Gearless Panamax)
5,500 NAR
5,000 GAR
30-60 day
30-60 day
CIECI00 129.80 -0.70
TCAKJ00 126.25 -0.40
■■Price hit record low at Yuan 44.66/mt ($6.92/mt) on Sept. 2 CFR India East (Gearless Panamax) 4,200 GAR 30-60 day TCAKU00 96.60 -0.40

■■Daily trade volume below 100 mt of CO2 for four consecutive days Atlantic Basin
Europe
DELIVERED INDIA 5,500 kcal/kg NAR CIF ARA 6,000 NAR 15-60 day CSARM01 170.00 +2.00
European Blended Price (EBP) 6,000 NAR 15-60 day TEBPA00 130.25 +0.75
($/mt) EBP/CIF ARA Differential 6,000 NAR 15-60 day TEBPB00 -39.75 -1.25
160
South Africa
140 FOB Richards Bay 5,500 NAR 7-45 day AAXEX00 123.50 +2.05

North America
120 FOB Baltimore 3%S 6,900 NAR 15-60 day CUATB04 NA NA
RB FOB Hampton Roads 1%S 6,000 NAR 15-60 day CUAEA04 NA NA
100 Newcastle FOB New Orleans 3%S 6,000 NAR 15-60 day CUAFA04 NA NA
FOB Long Beach 0.5%S 6,000 NAR 15-60 day CTLBA00 NA NA
80 FOB Oakland 0.5%S 6,000 NAR 15-60 day CTOKA00 NA NA
FOB Vancouver 0.5%S 5,000 NAR 15-60 day CTVCA00 NA NA
60 Note: In the absence of transactional data, these assessments represent theoretical value
for export.
40
Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21

Source: S&P Global Platts

www.platts.com www.twitter.com/PlattsCoal
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021

Thermal coal production in South Kalimantan WEEKLY PROMPT PHYSICAL THERMAL COAL PRICES, SEP 3
Code Kcal/kg Basis Sulfur $/mt Change
takes a hit amid heavy rain CIF Med 75kt CTCMT04 6,000 NAR 0.8% 127.00 +0.50
CIF Med 45kt CTCMA04 6,000 NAR 0.8% 136.25 +0.25
■■Emergency response status imposed until Sep. 17 FOB Colombia CSABZ00 6,000 NAR 0.8% 148.00 +7.00
FOB Russia Baltic CSAKC00 6,000 NAR 0.5% 140.00 +10.00
■■Pt. Baramega Citra Mulia Persada declares force majeure
FOB Russia Pacific CSAKG00 6,300 GAR 0.3% 138.00 +1.00
■■Coal buyers unsure about loading cargo from region

PLATTS PHYSICAL THERMAL COAL NETBACKS, SEP 6

Thermal coal production in Indonesia’s South Kalimantan province has
taken a major hit after heavy rain led to flooding at several mines,
leading to producers requesting delays in loading, sources said Sept. 6.
Tanah Bumbu Regency, a region in South Kalimantan, said it had
declared a status of emergency response in numerous districts from
Sept. 4-17, as per a letter seen by S&P Global Platts. The region has 10
districts.
Market sources said production was impeded significantly and
producers were requesting buyers to reschedule deliveries.
A mid-sized miner in the region, producing as much as 20 million
mt of thermal coal, was said by reportedly declared force majeure
amid the rains and said it is working to mitigate the situation as quickly
Code CV Basis Sulfur $/mt Chg
(kcal/kg)
Coal ($/mt)
CIF ARA CSARM01 6,000 NAR 1.0% 170.00 +2.00
Platts NEAT JKTCA00 5,750 NAR 1.0% 136.50 -0.76
CFR India West CIWCI00 5,500 NAR 0.8% 128.15 -0.70
Panamax Freight ($/mt)
USEC-Rotterdam CDBUR00 20.75 -0.25
Mobile-Rotterdam CDMAR00 27.25 -0.25
Roberts Bank-Japan CDRBK00 29.15 -0.75
Richards Bay-India West CSAKL00 27.30 -0.45
Penalties & Premia ($/mt)
Per 0.1% Sulfur (USGC) COPAP00 NA NANA
Total S discount (USGC) COPBP00 NA NANA

as possible. Netbacks ($/st)

“Miners will try to get their production back in order as soon as
possible. At the current coal prices they would want to produce and
sell as much as possible,” a Singapore-based trader said.
He expected the situation to improve in the next 10 days.
Officials from Tanah Bumbu Regency were not available for comment.
FOB US East Coast* COUSC00 12,500 GAR 1.0% NA NANA
FOB US Gulf Coast* COUGU00 11,500 GAR 2.9% NA NANA
FOB Vancouver* COVCU00 8,800 GAR 0.8% NA NANA
Netbacks ($/mt)
FOB Richards Bay CSEUW00 6,000 NAR 0.8% 115.18 -0.27
* CV = Btu/lb

Other mines in the region may also declare force majeure under
the prevailing circumstances, sources said.
“Our mine is also facing production problems. The entire region is
affected and there is very little production happening in these areas
but some are not declaring force majeure as they would try and
renegotiate delivery schedule even if they are producing at 10% of their
capacity,” an Indonesia-based producer said.
The heavy rain was expected to further tighten the Indonesian coal
market at a time when domestic demand and seaborne demand has
sent prices to record highs.
“Most mines have low stocks and rains are here and they have to

GLOBAL COAL PHYSICAL PRICE SNAPSHOT, SEPTEMBER 06 $/mt, kcal/kg)

FOB Baltic Russia 6,000 NAR* 140.00

FOB Russia Pacific 138.00
CIF ARA 6,000 NAR 170.00
European Blended Price 6,000 NAR 130.25
FOB Baltimore 6,000 NAR NA
FOB Hampton Roads 6,000 NAR NA CIF Med 75kt 6,000 NAR* 127.00
Platts NEAT 5,750 NAR 136.50
FOB New Orleans 6,000 NAR NA CIF Med 45kt 6,000 NAR* 136.25
FOB Long Beach 6,000 NAR NA
CFR Pakistan 5,750 NAR 135.00 PCC 8 (CFR South China) 5,500 NAR 148.65
FOB Oakland 6,000 NAR NA
CFR India East 5,500 NAR 129.80
FOB Vancouver 5,000 NAR NA CFR Bangladesh 5,000 GAR 129.05
CFR India West 5,500 NAR 128.15
CFR India East 4,200 GAR 96.60 Platts SEAT 4,200 GAR 95.75
CFR India West 4,200 GAR 98.40
FOB Colombia 6,000 NAR* 148.00
FOB Kalimantan 4,200 GAR 77.55

FOB Richards Bay 5,500 NAR 123.50 FOB Newcastle 5,500 NAR 101.75
FOB Richards Bay 6,000 NAR 115.18

* Weekly price, assessed Fridays

Source: S&P Global Platts

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 2
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021

supply to domestic market. So supply is tight,” another Indonesia- SPOT DRY BULK FREIGHT ASSESSMENTS, SEP 6
Platts symbol $/mt Chg
based producer said. Capesize
The 4,200 kcal/kg GAR Indonesian coal was assessed at $77.45/mt Australia-China CDANC00 14.85 -0.95
FOB on Sept. 3 while the 3,800 kcal/kg was assessed at $63.95/mt. Queensland-Japan CIGAJ00 16.55 -1.00

“Indians are interested in buying, but in the current scenario we
cannot be sure about whether loading will happen from Indonesian
ports,” an India-based trader said. “The mines were struggling anyway
to meet targets due to domestic market obligation and this will give
them an exit.”
China and India are major importers of coal from the region and
buyers were worried about the supply from the region.
New South Wales-Korea CINAK00 17.90 -1.10
Bolivar-Rotterdam CIBCR00 19.00 -0.25
Roberts Bank-Japan CDRKJ00 18.15 -1.00
Panamax
Richards Bay-India West CSAKL00 27.30 -0.45
Kalimantan-India West CSAKP00 18.85 -0.55
Richards Bay-India East CSAKN00 28.25 -0.50
Kalimantan-India East CSAKR00 16.25 -0.50

Indonesia produced 400 million mt over January-August, up 6% Ventspils-Rotterdam CILTN00 12.00 0.00
USEC-India CDBUI00 65.75 -0.25
from same period in 2020, government data showed.
USEC-Rotterdam CDBUR00 20.75 -0.25
— Suyash Pande, Rituparna Nath
Mobile-Rotterdam CDMAR00 27.25 -0.25
Roberts Bank-Japan CDRBK00 29.15 -0.75
Australia-China CDBFA00 24.35 -0.80

Czech coal plant Pocerady’s mercury emission Australia-India CDBFAI0 27.50 -0.80

exemption confirmed
■■Environment ministry confirms exemption
■■Deadline for improved performance shortened
■■Environment groups consider legal challenge
The Czech ministry of environment had confirmed exemptions from
EU air quality rules allowing the 1-GW Pocerady coal-fired power station
to continue operations, asset owner Sev.en Energy said Sept. 6.
The ministry has, however, shortened the four-year exemption to
meet mercury emissions limits set out in the industrial emissions
directive.
For two of Pocerady’s five 200 MW units the exemption runs to
mid-2024. For one unit the deadline is end-2024, while for the
Supramax
Richards Bay-Port Qasim CRBPB00 32.60 -0.20
South Kalimantan-Krishnapatnam CISKK00 24.90 -1.25
THERMAL COAL IMPLIED FREIGHT TABLE, SEP 6
Basis 5,500 kcal/kg NAR
Origin/delivery hub NE Asia SE Asia NW Europe India Med South China
FOB Newcastle (20% Ash) 28.82 29.91 54.08 28.05 14.67 46.90
FOB Kalimantan 1.18 2.27 26.44 0.41 -12.97 19.26
FOB Colombia -5.10 -4.01 20.16 -5.87 -19.25 12.98
FOB Russia Baltic 2.24 3.33 27.50 1.47 -11.91 20.32
FOB Russia Pacific 4.07 5.16 29.33 3.30 -10.08 22.15
FOB Richards Bay 7.07 8.16 32.33 6.30 -7.08 25.15
FOB Baltimore 43.17 44.26 68.43 42.40 29.02 61.25
FOB New Orleans 48.07 49.16 73.33 47.30 33.92 66.15
FOB Vancouver 77.00 78.09 102.26 76.23 62.85 95.08

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COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021

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
6-Sep Bid FOB Richards Bay 6000 NAR $148 50,000 October globalCOAL
6-Sep Bid FOB Richards Bay 6000 NAR $150 50,000 November globalCOAL
6-Sep Bid CIF ARA 6000 NAR $170 50,000 October globalCOAL
6-Sep Offer CIF ARA 6000 NAR $170 50,000 October globalCOAL
6-Sep Trade CIF ARA 6000 NAR $170 50,000 October globalCOAL
6-Sep Offer CIF ARA 6000 NAR $172 50,000 October globalCOAL
6-Sep Offer FOB Richards Bay 6000 NAR $152 50,000 October MySteel
6-Sep Bid FOB Richards Bay 6000 NAR $149 50,000 October MySteel
6-Sep Indication FOB Kalimantan 4200 GAR $80 55,000 Sep Producer Supramax
6-Sep Indication FOB Kalimantan 4200 GAR $76 55,000 Sep Producer Supramax
6-Sep Indication FOB Kalimantan 3800 GAR $65-66 55,000 Sep Trader Supramax
6-Sep Indication FOB Kalimantan 4200 GAR $76-77 55,000 Sep Trader Supramax
6-Sep Indication FOB Kalimantan 5000 GAR $110-115 55,000 Sep Trader Supramax
6-Sep Offer FOB Kalimantan 5800 GAR $126 55000/75000 Sep Trader Geared vessel
6-Sep Indication FOB Kalimantan 4200 GAR $80 Unknown Sep Producer Gearless vessel
6-Sep Offer FOB Kalimantan 4200 GAR $80 55000/75000 Sep Producer Geared vessel
6-Sep Offer FOB Kalimantan 5900 GAR $140 Unknown Sep Producer Gearless vessel
6-Sep Offer FOB Kalimantan 5000 GAR $115 55000/75000 Sep Producer Geared vessel
6-Sep Offer FOB Kalimantan 5400 GAR $128 75,000 Oct Trader Panamax
6-Sep Offer FOB Kalimantan 3800 GAR $64 55,000 Oct Trader Supramax
6-Sep Offer FOB Kalimantan 3800 GAR $62.5 55,000 Oct Producer Supramax
6-Sep Offer FOB Kalimantan 4200 GAR $77-78 55,000 Oct Producer Supramax
6-Sep Offer FOB Kalimantan 5800 GAR $128-130 55,000 Oct Producer Supramax
6-Sep Offer FOB Kalimantan 5800 GAR $155 Unknown Sep Trader Gearless vessel
6-Sep Indication FOB Kalimantan 3800 GAR $62 55000/75000 Sep Trader Geared vessel
6-Sep Indication FOB Kalimantan 5800 GAR $130 55000/75000 Sep Trader Geared vessel
6-Sep Indication FOB Kalimantan 5000 GAR $110 55000/75000 Sep Trader Geared vessel
6-Sep Offer FOB Kalimantan 3800 GAR $65 55,000 Sep Trader Supramax
6-Sep Offer FOB Kalimantan 4200 GAR $77 55,000 Sep Trader Supramax
6-Sep Offer FOB Kalimantan 5100 GAR $115 Unknown Sep Trader Gearless vessel
6-Sep Offer FOB Newcastle 5500 NAR $108 130,000 Oct Trader Capesize
6-Sep Trade FOB Kalimantan 4200 GAR $81 75,000 Nov Producer Panamax
6-Sep Indication FOB Kalimantan 4200 GAR $82 75,000 Sep Producer Panamax
6-Sep Indication FOB Kalimantan 3800 GAR $63-64 55,000 Sep Producer Supramax
6-Sep Offer FOB Kalimantan 5700 GAR $130 55,000 Oct Producer Supramax
6-Sep Bid FOB Kalimantan 5700 GAR $126 55,000 Oct Producer Supramax
6-Sep Trade CFR China 5500 NAR $143 55,000 Sep Trader Supramax
6-Sep Offer FOB Kalimantan 5000 GAR $111 75,000 Sep Trader Panamax
3-Sep Offer CIF ARA 6000 NAR $169 50,000 October globalCOAL
3-Sep Bid CIF ARA 6000 NAR $166 50,000 October globalCOAL
3-Sep Bid CIF ARA 6000 NAR $162 50,000 November globalCOAL
3-Sep Offer CIF ARA 6000 NAR $165 50,000 November globalCOAL
3-Sep Bid FOB Richards Bay 6000 NAR $148 50,000 November globalCOAL
3-Sep Bid FOB Richards Bay 6000 NAR $148 50,000 October globalCOAL
3-Sep Offer FOB Richards Bay 6000 NAR $152.5 50,000 October globalCOAL
3-Sep Offer CIF ARA 6000 NAR $177 50,000 October Braemar
3-Sep Bid CIF ARA 6000 NAR $167 50,000 October Braemar
3-Sep Offer FOB Richards Bay 6000 NAR $150.5 50,000 October MySteel
3-Sep Indication FOB NOLA 6000 NAR $100 0 October Broker
3-Sep Indication FOB NOLA 6000 NAR $80 0 October Broker
3-Sep Indication FOB Baltimore 6900 NAR $94 0 October Broker
3-Sep Indication FOB Baltimore 6900 NAR $125.3 0 October Broker
3-Sep Offer FOB Kalimantan 3000 NAR $45 55000/75000 Sep Trader Geared vessel
3-Sep Offer FOB Kalimantan 3400 NAR $63 55000/75000 Sep Trader Geared vessel
3-Sep Offer FOB Kalimantan 3700 NAR $71 55000/75000 Sep Trader Geared vessel
3-Sep Offer FOB Kalimantan 5100 NAR $127 75,000 Oct Trader Panamax
3-Sep Trade FOB Kalimantan 5400 GAR $119 75,000 Sep Trader Panamax

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 4
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021

remaining two the deadline is mid-2025.
The ministry has also called on the company to review its progress
cutting other emissions, including those of sulphur dioxide, by
November 2022 pending a further review of targets.
The ruling followed appeals against the exemption by Czech
environment groups, which said they would consider calling for a legal
review of the decision.
Pocerady, the biggest coal plant in the Czech Republic, was bought
by Sev.en Energy from CEZ at the end of 2020.
The power company plans to invest over Koruna 1 billion ($47 million)
in improving the plant’s emissions performance with a view to continued
operation until around 2036, when proposed new nuclear plant at CEZ’s
Dukovany site is due online.
— Chris Johnstone
China’s carbon price hits record low
of $6.92/mt, liquidity falls
THERMAL COAL FORWARD CURVES, SEP 6
Bid Ask Midpoint* Platts symbol Change* % Change
CIF ARA 6,000 NAR
Oct-21 165.10 165.40 165.25 CSAM001 +2.75 +1.69
Nov-21 161.00 161.30 161.15 CSAM002 +3.50 +2.22
Q4-21 160.85 161.15 161.00 CSAQ001 +3.40 +2.16
Q1-22 143.45 143.75 143.60 CSAQ002 +3.00 +2.13
Q2-22 124.20 124.50 124.35 CSAQ003 +3.00 +2.47
Q3-22 112.95 113.25 113.10 CSAQ004 +2.75 +2.49
2022 121.35 121.65 121.50 CSAY001 +2.75 +2.32
2023 95.85 96.15 96.00 CSAY002 +1.75 +1.86
2024 92.35 92.65 92.50 CSAY003 +1.75 +1.93
*Fields are calculated.
YEARAHEAD TTF vs DUTCH YA COAL SWITCHING PRICE
(Eur/MWh)
35
30

■■Price hit record low at Yuan 44.66/mt ($6.92/mt) on Sept. 2 25 Dutch TTF
CSP
■■Daily trade volume below 100 mt of CO2 for four consecutive days
20

The daily weighted average price of a Carbon Emission Allowance

15
(CEA) under China’s national carbon market fell to its lowest level since
the market was launched in July, to Yuan 44.66/mtCO2e ($6.92/mt 10
CO2e) on Sept. 2, amid a drop in liquidity, according to data from Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21
Shanghai Environment Energy Exchange, the host of the online carbon Efficiency used is 50% for gas plants and 40% for Dutch coal plants. Platts CSPI is the
trading platform. 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.
China’s daily weighted average carbon price ended the week at Source: S&P Global Platts
Yuan 44.67/mt CO2e on Sept. 3, down from Yuan 45.16/mt CO2e at the
start of the week on Aug. 30, while the weekly traded volume dropped
to 658 mt of CO2 from 499,527 mt of CO2 the previous week, falling to GERMAN CLEAN DARK SPREADS vs CLEAN SPARK SPREADS
its lowest since the start of China’s nationwide carbon trading, the (Eur/MWh)
exchange data showed. 40
Daily trading volumes have steadily declined in China’s carbon
market since its opening day when 4.1 million mt of CO2 were traded. 20
CDS 45%
The first day of trade accounted for nearly 50% of total traded volumes CSS 50%
since the market was launched on July 16. CSS 45%
0
— Ivy Yin CDS 35%

-20

CME July coal volumes fall 8% on year

to 14.5 million mt -40
MA MA +1 QA QA +1 YA

■■CIF ARA volume 95% of total Source: S&P Global Platts

■■Jan-Jul volume down 40% on year

The volume of thermal coal derivatives traded and cleared on the CME
electronic trading platform in July was 14.5 million mt, up 33% on the
month but down 8% year on year, exchange data showed Sept. 6.
This was led by a rebound in CIF ARA volumes, which hit a four-
month high, likely due to the continuation of considerable price rallies
which saw prices hit multi-year highs during the month.
January-July volume was 99.8 million mt, down 40.4% from the
POWER PRICE FUNDAMENTALS
06-Sep-21 Change
Brent oil (month ahead – $/b) AAYES00 72.090 -0.930
Coal CIF ARA (year ahead – $/mt) CSAY001 121.500 +2.750
EEX EUA carbon (front December – Eur/mt) EADLP00 62.110 +0.770
UK NBP gas (month ahead – p/th) NGAAE00 133.000 +2.400
Dutch TTF gas (year ahead – Eur/MWh) GTFTZ00 34.925 +0.675

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 5
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021
year-ago period.
European CIF ARA derivatives trading totaled 13.8 million mt, up
44% on the month and down 6% on the year, the highest volume since
March and accounting for 95% of the total.
South African FOB Richards Bay derivatives were 665,000 mt,
down 46% on the month and 8% from the year-ago month.
Indonesian FOB Kalimantan derivatives were 10,000 mt, down 84%
on the month and 97% on the year.
— Joseph Clarke
China needs $21 trillion investment to achieve
2060 carbon neutrality target: official
■■Value of carbon trading needs to reach $46.48 billion
China needs Yuan 136 trillion ($21.1 trillion) of investments – around
$500 billion a year on average – to reach its target of becoming
carbon-neutral by 2060, while increased volumes of trade on its
recently launched national carbon trading system will be key to
decarbonization, Zhang Shaogang, vice chairman of China Council for
the Promotion of International Trade (CCPIT), said on Sept. 4 at the
China International Fair for Trade in Services or CIFTIS 2021.
Zhang said that achieving carbon neutrality would be a more
challenging task than the target of reaching a peak of carbon
emissions in 2030, given that 60% of the core technologies needed to
get there are still in the conceptual phase and would require huge
capital support for research and development.
The $21 trillion investment target translates into average annual
investment of $500 billion from now to 2060. To put this figure into
context, earlier in May, the International Energy Agency launched a
global net-zero roadmap which said that meeting the net-zero target
required an annual energy investment of $5 trillion globally by 2030.
Despite China’s carbon neutral target being 10 years later than the
IEA’s net-zero 2050 target, China’s investment projection implies that it
will need to account for over 10% of global decarbonization
investments annually.
Zhang said government backing will not be sufficient to produce
this capital flow, and social and market-based solutions are expected
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
5DAYAHEAD TEMPERATURE DEVIATION FORECAST
Source: S&P Global Platts, Custom Weather
to play an increasingly important role.
He said China’s carbon trading industry is “a vast blue ocean” with
a promising future despite the current lack of liquidity.
Since its launch on July 16, China’s national carbon market has
traded Yuan 416.16 million ($64.47 million) worth of CO2, official data
showed, but 51% of the value was transacted on the opening day alone
and trade volumes and prices have nosedived since, with just 10 mt
CO2 traded on Sept. 6.
Zhang said total trading on the carbon market would need to reach
some Yuan 300 billion ($46.5 billion) by 2060, which equates to an
average of more than $1 billion a year over the next 40 years.
Zhang said the China Council for the Promotion of International
Trade, as the national foreign trade and investment promotion agency,
will promote the development of carbon trading rules and regulations
to support the low-carbon economic transition.
— Ivy Yin
Atlantic met coal sees China pricing
continuing to support US exports
■■US prices holding, after recent gains
■■Futures surge, for FOB Australia contracts
■■Prices gain in APAC, on tight availability
Atlantic metallurgical coal markets saw higher China import spot prices
add to upward pressure on Sept. 6, and cargoes on the water were likely
to gain premiums to new sales on the short-term spike in demand.
6
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021

PLATTS DAILY METALLURGICAL COAL ASSESSMENTS, SEP 6

Asia-Pacific coking coal ($/mt)
Platts FOB Australia Change Platts CFR China Change Platts CFR Change
symbol symbol symbol India
HCC Peak Downs Region HCCGA00 280.00 +10.00 HCCGC00 304.25 +9.00 HCCGI00 307.50 +9.20
Premium Low Vol PLVHA00 279.00 +10.00 PLVHC00 460.00 +7.50 PLVHI00 306.50 +9.20
Low Vol HCC HCCAU00 246.00 +10.00 HCCCH00 417.50 +7.50 HCCIN00 273.50 +9.20
Low Vol PCI MCLVA00 208.00 +3.00 MCLVC00 245.00 +3.00 MCLVI00 235.50 +2.20
Mid Vol PCI MCLAA00 207.00 +3.00 MCLAC00 243.00 +3.00 MCVAI00 234.50 +2.20
Semi Soft MCSSA00 207.00 +3.00 MCSSC00 232.50 +2.00 MCSSI00 234.50 +2.20
Premium Low Vol China Netback PLVHD00 435.65 +8.30

TSI coking coal indices ($/mt)

TSI Premium Hard (PHCC) FOB Australia TS01034 279.00 +10.00

Asia-Pacific brand relativities ($/mt)

Platts FOB Australia Spread Platts CFR China Spread Spread
symbol vs PLV symbol vs PLV vs Low Vol HCC
FOB Australia CFR China CFR China
Premium Low Vol PLVHA00 279.00 100.00% PLVHC00 460.00 100.00%
Peak Downs HCPDA00 280.00 100.36% MCBAA00 304.25 66.14%
Saraji HCSAA00 279.00 100.00% MCBAB00 303.25 65.92%
Oaky North HCOKA00 278.50 99.82% MCBAR00 302.75 65.82%
Illawarra HCIWA00 283.00 101.43% MCBAH00 298.25 64.84%
Moranbah North HCMOA00 283.00 101.43% MCBAG00 298.25 64.84%
Goonyella HCGOA00 283.00 101.43% MCBAE00 298.25 64.84%
Peak Downs North HCPNA00 282.00 101.08% MCBAJ00 297.25 64.62%
Goonyella C HCGNA00 282.00 101.08% MCBAI00 297.25 64.62%
Riverside HCRVA00 282.00 101.08% MCRVR00 297.25 64.62%
GLV HCHCA00 276.50 99.10% MCBAF00 295.75 64.29%
Low Vol HCC HCCCH00 417.50 90.76% 100.00%
Lake Vermont HCC MCBAN00 287.75 68.92%
Carborough Downs MCBAO00 285.75 68.44%
Middlemount Coking MCBAP00 277.75 66.53%
Poitrel Semi Hard MCBAQ00 274.75 65.81%
September 6 freight rates. Australia to China: Panamax = $24.35/mt Capesize = $14.85/mt.
For further information about these assessments, please refer to the specifications guide:
https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/metals/metallurgical-coal-methodology or contact PL_CokingCoal@spglobal.com.

Atlantic coking coal ($/mt)

Platts FOB US
symbol East Coast Change VM Ash S
Low Vol HCC AAWWR00 320.00 0.00 19.25% 8.25% 0.95%
High Vol A AAWWS00 300.00 0.00 32.25% 7.5% 0.95%
High Vol B AAWWT00 240.00 0.00 36.00% 8.00% 1.00%
Premium Low Vol HCC CFR NWE PLVHE00 302.75 +9.00 21.50% 9.30% 0.50%
Premium Low Vol FOB Australia PLVHA00 279.00 +10.00 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 3700 PCCMB04 3735 PCCMC04 3950 PLVHJ04 496.54
PCC Met Shanxi High Sulfur Premium Low Vol PCCMD04 3050 PCCME04 3085 PCCMF04 3300 PLVHD04 421.83
PCC Met North China Fat Coal PCCMG04 2800 PCCDG04 356.41
PCC Met Shanxi PCI PCCMH04 1940 PCCMI04 1975 PCCMJ04 2115 MCLCC04 266.78
PCC Met Shandong Semi Soft PCCMK04 1970 PCCML04 1990 MCSSD04 245.15

PCC Met Rail Freight Shanxi – Tangshan PCCMM04 200

PCC Met Truck Freight Shanxi – Tangshan PCCMO04 250
*Weekly (assessed September 1).

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 3650.00 AAWZO00 481.63
Low Vol HCC* AAWZP00 3290.00 AAWZQ00 433.73
*Weekly (assessed September 3), 20-day delivery from date. **Ex-stock price, net of port charges, import tax and VAT.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 7
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021

PLATTS DAILY METALLURGICAL COAL ASSESSMENTS (continued)

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
Low Vol HCC 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
Per 1% CSR 67-74% CPCSA00 0.00% CPCSP00 0.00
Per 1% VM (air dried) 18-27% CPVPA00 0.25% CPVMP00 0.70
Per 1% TM (as received) 8-11% CPTPA00 -1.00% CPTMP00 -2.79
Per 1% Ash (air dried) 7-10.5% CPAPA00 -0.25% CPPAP00 -0.70
Per 0.1%S (air dried) 0.3-1% CPSPA00 -0.25% CPSPV00 -0.70

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
Per 1% CSR 50-64% CPPBA00 0.10% CPPBB00 0.32
40-49% CPPBC00 0.10% CPPBD00 0.32
Per 0.1% S 0.70-1.05% CPPBE00 0.85% CPPBF00 2.72
1.06-1.25% CPPBG00 1.60% CPPBH00 5.12
Per 1% TM (as received) 6-11% CPPBK00 1.00% CPPBL00 3.20
Per 1% Ash 5-10% CPPBI00 1.50% CPPBJ00 4.80

US weekly brand relativities ($/mt), September 3

Platts FOB Spread vs US LV
symbol
Blue Creek No. 7 MCAPB04 350.00
Blue Creek No. 4 MCAPC04 320.00
Beckley MCAPD04 326.50 102.03%
Low Vol FOB USEC AAWWR00 320.00 100.00%
Windber MCAPE04 319.50 99.84%
Buchanan MCAPF04 326.50 102.03%
September 3 Panamax freight rates. Hampton Roads to Rotterdam = $21.00/mt, Hampton Roads to Brazil = $22.75/mt, Mobile to Rotterdam = $27.50/mt.
For further information about these assessments, please refer to the specifications guide:
https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/metals/metallurgical-coal-methodology or contact PL_CokingCoal@spglobal.com.

Source: S&P Global Platts

COKING COAL DERIVATIVES ASSESSMENTS, SEP 6 METALLURGICAL COKE, SEP 6

Platts symbol $/mt Chg % Chg
TSI Premium Hard Coking Coal Australia Export FOB East Coast Port
Oct-21 MCPLM01 293.250 +14.750 +5.296
Nov-21 MCPLM02 286.000 +14.500 +5.341
Dec-21 MCPLM03 280.000 +18.500 +7.075
Q4-21 MCPLQ01 286.500 +16.000 +5.915
Q1-22 MCPLQ02 248.000 +11.500 +4.863
Q2-22 MCPLQ03 223.000 +6.000 +2.765
2022 MCPLY01 219.750 +7.250 +3.412
2023 MCPLY02 199.750 +5.000 +2.567
PLATTS CHINA PLV, MET COKE PRICE DIFFERENTIALS, SEP 6
Price spreads Platts symbol $/mt
Seaborne
% CSR Platts symbol $/mt Chg % Chg
FOB North China 66/65 MCCNC00 624.00 +12.00 +1.96
65/63 MCCHB00 594.00 +12.00 +2.06
64/62 AAWVL00 580.00 +12.00 +2.11
62/60 MCCHA00 575.00 +12.00 +2.13
CFR India 66/65 MCCNI00 521.00 +10.00 +1.96
65/63 MCINB00 500.00 +10.00 +2.04
64/62 MCCEI00 489.00 +10.00 +2.09
62/60 MCINA00 484.00 +10.00 +2.11
Domestic
Yuan/mt
DDP North China (weekly) 62 AAWVJ00 3750.00 +260.00 +7.45

Import-Shanxi Premium Low Vol CFR China PLVHK04 -65.04 $/mt

Import-port stock Premium Low Vol CFR China PLVHL04 -29.13 FOB North China equivalent (DDP weekly) 62 PLVHM04 587.36 +41.12 +7.00
62% CSR coke export-domestic FOB North China PLVHN04 -32.36

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 8
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021
HYDROGEN & CARBON
NORTH AMERICA HYDROGEN ASSESSMENTS, SEPTEMBER 3*
Excluding Capex Including Capex
Production Pathway $/kg Change $/kg Change
Alberta (C$/kg)
SMR w/o CCS NA NA NA NA
Alkaline Electrolysis NA NA NA NA
PEM Electrolysis NA NA NA NA
Appalachia
SMR w/o CCS 0.5463 -0.0496 1.1416 -0.0497
Alkaline Electrolysis 1.6892 -0.0275 2.5686 -0.0275
PEM Electrolysis 1.9513 -0.0318 3.5269 -0.0317
Gulf Coast
SMR w/o CCS 0.7334 +0.0021 1.2375 +0.0021
Alkaline Electrolysis 1.9931 +0.0851 2.8255 +0.0852
PEM Electrolysis 2.3023 +0.0983 3.7937 +0.0983
Midcontinent
SMR w/o CCS 0.6923 +0.0038 1.2236 +0.0038
Alkaline Electrolysis 2.0983 +0.2038 2.9521 +0.2037
PEM Electrolysis 2.4238 +0.2353 3.9537 +0.2354
Northeast
SMR w/o CCS 0.5457 -0.0535 1.1804 -0.0534
Alkaline Electrolysis 1.7720 -0.0628 2.6766 -0.0628
PEM Electrolysis 2.0469 -0.0726 3.6677 -0.0726
Northern California
SMR w/o CCS 0.9067 +0.0105 1.6370 +0.0105
Alkaline Electrolysis 2.6871 +0.0683 3.6734 +0.0683
PEM Electrolysis 3.1041 +0.0789 4.8711 +0.0789
Northwest
SMR w/o CCS 0.7693 +0.0505 1.3519 +0.0505
Alkaline Electrolysis 4.1160 +1.7676 5.0121 +1.7676
PEM Electrolysis 4.7546 +2.0419 6.3602 +2.0419
Rockies
VOLUNTARY CARBON CREDITS, SEPTEMBER 6
$/mtCO2e Change Eur/mtCO2e Change
Platts CEC 7.300 +0.300 6.155 +0.259
Note: The Platts CEC assessment reflects the value of CORSIA-eligible credits in the voluntary
carbon market, and is not a component of Platts hydrogen assessments.
UK HYDROGEN ASSESSMENTS, SEPTEMBER 6
Production Pathway GBP/kg Change GBP/KWh Change
ATR w CCS 2.7087 +0.0501 0.0813 +0.0015
ATR w CCS (inc. Capex & Carbon) 3.0279 +0.0501 0.0908 +0.0015
Alkaline Electrolysis 6.5030 +0.1442 0.1951 +0.0043
Alkaline Electrolysis (inc. Capex) 7.1053 +0.1461 0.2132 +0.0044
PEM Electrolysis 7.5094 +0.1666 0.2253 +0.0050
PEM Electrolysis (inc. Capex) 8.5885 +0.1700 0.2577 +0.0051
NETHERLANDS HYDROGEN ASSESSMENTS, SEPTEMBER 6
Production Pathway Eur/kg Change Eur/KWh Change
SMR w/o CCS 2.4054 +0.0458 0.0722 +0.0014
SMR w/o CCS (inc. Capex) 2.8303 +0.0464 0.0849 +0.0014
SMR w/o CCS (inc. Carbon) 2.9581 +0.0526 0.0888 +0.0016
SMR w/o CCS (inc. Capex & Carbon) 3.3831 +0.0533 0.1015 +0.0016
SMR w CCS 2.9876 +0.0545 0.0896 +0.0016
SMR w CCS (inc. Capex) 3.6757 +0.0555 0.1103 +0.0017
SMR w CCS (inc. Carbon) 3.0429 +0.0552 0.0913 +0.0017
SMR w CCS (inc. Capex & Carbon) 3.7310 +0.0562 0.1119 +0.0016
Alkaline Electrolysis 6.3751 +0.0768 0.1913 +0.0023
Alkaline Electrolysis (inc. Capex) 7.0769 +0.0779 0.2123 +0.0023
PEM Electrolysis 7.3615 +0.0888 0.2209 +0.0027
PEM Electrolysis (inc. Capex) 8.6189 +0.0907 0.2586 +0.0027
SMR w/o CCS 0.7329 +0.0300 1.2911 +0.0300 NETHERLANDS HYDROGEN INCLUDING CAPEX
Alkaline Electrolysis 3.6484 +1.4427 4.5150 +1.4427
(Eur/kg)
PEM Electrolysis 4.2145 +1.6665 5.7671 +1.6665
10
Southeast
SMR w/o CCS 0.7392 +0.0075 1.2589 +0.0076 PEM
Alkaline Electrolysis 2.3052 +0.4006 3.1599 +0.4006 8 Electrolysis
PEM Electrolysis 2.6629 +0.4628 4.1942 +0.4628 Alkaline
Southern California Electrolysis
SMR w/o CCS 0.9271 +0.0772 1.6279 +0.0772 6
SMR w CCS
Alkaline Electrolysis 2.6410 +0.0827 3.6069 +0.0827
(inc. carbon)
PEM Electrolysis 3.0508 +0.0956 4.7814 +0.0956
month ahead
Upper Midwest 4
SMR w/o CCS
SMR w/o CCS 0.6986 -0.0004 1.2671 -0.0003
(inc. carbon)
Alkaline Electrolysis 1.8963 -0.0980 2.8027 -0.0980
month ahead
PEM Electrolysis 2.1905 -0.1132 3.8144 -0.1132 2
26-Jul 30-Jul 05-Aug 11-Aug 17-Aug 23-Aug 27-Aug 03-Sep
*Assessed previous day
Source: S&P Global Platts
JAPAN HYDROGEN ASSESSMENTS, SEPTEMBER 6
Excluding Capex Including Capex CALIFORNIA ELECTROLYSIS INCLUDING CAPEX
Production Pathway Yen/kg Change Yen/kg Change ($/kg)
SMR w/o CCS 346.6813 +4.4191 429.7508 +4.3435 9
Alkaline Electrolysis 393.0291 -32.3351 530.2102 -32.4600
PEM Electrolysis 454.0111 -37.3526 699.7990 -37.5763 8
N. Calif.
PEM
7
S. Calif.
ASSESSMENT RATIONALE 6 PEM
The S&P Global Platts hydrogen prices are daily valuations that incorporate the cost N. Calif.
of variable natural gas, electricity, and carbon inputs, where applicable. A second set 5 Alkaline
of valuations include fixed assumptions for capital and operating expenses. The
4 S. Calif.
Platts hydrogen prices are not based on observed or reported market transactions.
Alkaline
Details on the Platts hydrogen methodology can be found at:
https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/ 3
27-Jul 02-Aug 06-Aug 12-Aug 18-Aug 24-Aug 30-Aug 03-Sep
energy-transition/hydrogen-methodology
Source: S&P Global Platts

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 9
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021
With the US shut for a holiday Sept. 6, it was early to see any
strengthening in US export offers and bids for new positions, with
limited availability already reported for fourth-quarter loading
positions. After a run of strong price increases, whether the Chinese
market would be willing to bid off current delivered spot PLV prices of
$460/mt CFR to take on new positions for US cargo arriving in 2022
was yet to be seen. US coking coals are already at premiums to PLV
FOB Australia, limiting some interest for US sale into other markets
with optionality on coal grades and origins.
The Platts US East Coast Low-Vol HCC benchmark assessment was
stable at $320/mt FOB Hampton Roads. The assessment is based on
58% CSR, 19.25% volatile matter, 8.25% ash and 0.95% sulfur.
Earlier in Asia, US low-vol Buchanan, which has low ash and sulfur,
was reported as offered Sept. 6 from a China-based trader at $425/mt
CFR China, for a 75,000-mt cargo on a Panamax vessel. S&P Global
Platts assessed Buchanan at $326.50/mt FOB on Sept. 3.
Panamax rates from US Hampton Roads to China were pegged on
the day at $70/mt, for October loading. Sales of cargoes already sailing
to China or loading promptly may be able to command a premium,
given US low-vol is limited for new cargo stems. Affinity is reportedly
sold out to 2022. Many US sales to China have been loaded onto
Capesizes, offering lower delivered coal costs per ton.
The Platts US High-Vol A index remained at $300/mt FOB USEC, based
on 32.25% volatile matter, 1.05% reflectance (MMR), 220% dilatation, 7.5%
ash, 0.95% sulfur, 30,000 ddpm and CSR typically in the low-60s.
The Platts US High-Vol B benchmark was stable at $240/mt FOB
USEC, based on 36% VM unblended product with 0.95% MMR, 160%
dilatation, 8% ash, 1% sulfur and 25,000 ddpm fluidity.
Futures saw strong gains across the curve, with prompt months
pulling away from the spot physical index. The TSI Premium HCC index,
used for settlement on the SGX, rose $10 to $279/mt FOB Australia.
The October contract rose 5.3%, or $14.75/mt, to $293.25/mt, while
Q4 2021 rose 5.9% to $286.50/mt, according to Platts assessments at
the close in Singapore.
— Hector Forster
Asia met coal prices continue to rise
on tight supply
■■Incremental bids fail to entice firm offer in ex-China market
■■Supply tightness persist across the PHCC markets
Asia met coal prices continued to push higher Sept. 6, on limited spot
availability.
S&P Global Platts assessed Premium Low Vol up $10.00/mt to
$279.00/mt FOB Australia, and CFR China up $7.50/mt at $460.00/mt
Sept. 6.
In the ex-China PLV market, thin trading activity was observed as
incremental firm bids seen in the PHCC market failed to entice any
selling interest.
The highest incremental bid was heard at $275/mt FOB Australia
for 75,000mt of globalCOAL HCCLV Peak Downs, with an October
laycan. Market participants also placed several tradeable levels at
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
around $280/mt FOB Australia for an Australian premium low vol Saraji.
“The fact that so many strong bids have failed to yet entice any
offers could be a sign of the supply tightness that is a bit worrying.”
said an international trader.
Supply tightness showed no signs of improvement in Australia and
the earliest available spot cargoes were understood to be in late
October, industry sources said.
In the CFR China market, price indications were supported on the
news of the closure of a major coking coal mine in Shanxi. The coal
mine, Wang Jialing, is understood to be one of the major producers of
high-CSR and low-ash hard coking coal in the Shanxi province. Market
participants anticipated a 400,000 mt/month supply shortage over the
mine closure, adding that “this could further tighten the domestic
supply that’s already stressed especially in the higher-grade segments.”
The DCE futures market reacted positively to this news with the
January coking coal contract closing up 6% and January coke futures
up 4.5% on Sept. 6.
An offer was indicated at $470/mt CFR China for a Panamax
volume of US low vol Oak Grove. In the second-tier hard coking coal
segment, an offer was heard indicated at $425/mt CFR China for a US
low vol Buchanan.
Most market participants, however, chose to adopt a wait-and-see
approach towards the seaborne premium hard coking coal, given the
high price levels.
“We are off the imported coal market for now as the current prices
are too high,” a Chinese end-user said. “But we expect the prices to
remain at the high level for this month as the domestic prices are
increasing as well.”
In both the Indian and Chinese coke markets, coke prices
continued the upward trend on rising coal prices.
“With such fast-rising coal prices, we are left with no choice but to
increase the coke price,” said a market participant.
— Tiankuo Jiang, Jeffery Lu
PLATTS HARD COKING COAL PREMIUM LOW VOL CFR CHINA
DAILY RATIONALE
S&P Global Platts assessed Premium Low-Vol HCC up $7.50/mt at $460/mt CFR
China Sept. 6.
An offer was indicated at $470/mt CFR China for a Panamax volume of US low
vol Oak Grove. This was for a coal assessed at a $2/mt discount to 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 HARD COKING COAL PREMIUM LOW VOL FOB
AUSTRALIA DAILY RATIONALE
S&P Global Platts assessed Premium Low-Vol HCC up $10/mt at $279/mt FOB
Australia Sept. 6.
The highest incremental bid was heard at $275/mt FOB Australia for 75,000 mt
of globalCOAL HCCLV Peak Downs, with an October laycan. This was for a coal
assessed at a $1/mt premium 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
10
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021
HYDROGEN
Wrightbus boss launches $1.4 billion hydrogen
investment fund to boost UK industry
■■Hycap fund to develop UK hydrogen value chain
■■Aims to cut cities’ transport budget by 25%
Green entrepreneur Jo Bamford and Vedra Partners have launched a
GBP1 billion ($1.38 billion) hydrogen investment fund to accelerate
renewable hydrogen production in the UK.
The Hycap investment fund has so far raised GBP200 million, and
would largely focus on UK businesses, it said in a statement Sept. 6.
Hycap would invest across the hydrogen value chain and aims to
save up to 25% of cities’ transport budget when fully deployed.
“With the government’s relentless pursuit of net-zero targets and
the publication of the damning IPCC report, it is our belief that hydrogen
holds the key to reducing emissions, and there is a growing sense of
urgency to act now,” Bamford, who is the chairman of Wrightbus and
CEO of renewable hydrogen company Ryze, said in the statement.
“The UK has missed the boat on batteries, a sector dominated by
China and the Far East, but we can be global leaders in the production
and supply of hydrogen, an economy said to be worth $2.5 trillion in
revenues by 2050,” Bamford added.
Bamford said the fund would help the UK hydrogen sector to
compete with other countries, and had identified over 40 companies it
would evaluate for investment.
“The fund will be investing across the entire value chain, focusing
on production, manufacture and supply, in order to put the UK firmly on
the map when it comes to hydrogen,” Vedra Partners founder Max
Gottschalk said in the statement.
“By striking meaningful commercial partnerships and developing
intelligent go-to-market strategies it is clear Hycap’s maiden fund can
add strategic, operational and financial value to the ecosystem while
creating entrepreneurial growth businesses.”
S&P Global Platts assessed the cost of producing hydrogen via
alkaline electrolysis in the UK (including capex) at GBP6.96/kg ($9.64/
kg) Sept. 3. PEM electrolysis production was assessed at GBP8.42/kg,
while blue hydrogen production by autothermal reforming was
GBP2.98/kg (including capex, CCS and carbon).
— James Burgess
Linde, Hydrogen Utopia to deploy plastic
waste-to-hydrogen technology in Poland
■■Waste plastic to produce 3 mt/day hydrogen
■■Targets $3.50/kg hydrogen sales price
■■First syngas production proof of concept in 2022
Industrial gas and chemicals company Linde has signed an agreement
with Hydrogen Utopia International to use its plastic waste-to-
hydrogen technology in Poland, HUI said Sept. 6.
HUI is targeting a Eur3/kg ($3.56/kg) hydrogen sales price,
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved.
producing 3 mt/day of the gas from 40 mt/day of waste plastic, the
company told S&P Global Platts. First production is expected in 2022,
and costs are expected to fall in the future, it said.
Linde has finalized a technical feasibility evaluation to deploy
Powerhouse Energy Distributed Modular Generation syngas clean-up
and hydrogen extraction technology in Konin, central Poland.
“We at Linde are very happy to contribute our gas cleaning and
hydrogen technologies to this forward-looking project,” Selas-Linde
Managing Director Harald Ranke said in a statement. “Producing
hydrogen from plastic waste will help to solve an environmental problem
and at the same time foster decentralized hydrogen utilization.”
The sales price of Eur3/kg compares with Platts’ alkaline
electrolyzer-based cost of hydrogen production assessments in
Europe of Eur7.00/kg Sept. 3 (Netherlands, including capex).
PEM electrolysis production was assessed at Eur8.53/kg, while
blue hydrogen production by steam methane reforming (including
carbon, CCS and capex) was Eur3.67/kg.
HUI and Linde are now in the final stage of signing a contract for
the syngas clean-up, HUI said in the statement.
The feasibility study envisages a plant to be jointly developed by
Linde, HUI and Powerhouse Energy in Konin. Hydrogen from the plant
will be used to fuel city buses and other heavy-duty vehicles, as well as
passenger cars.
HUI has the exclusive rights to the Powerhouse DMG system in
Poland, Hungary and Greece.
The project is subject to funding approval by the EU’s Just
Transition Fund, part of its Green New Deal package, and will be
matched by funds from the Polish government.
Poland’s hydrogen strategy targets having 500 Polish-
manufactured hydrogen fuel cell buses on the country’s streets by
2025 and 2,000 by 2030, together with 32 refueling stations. The
strategy envisages the use of low emission hydrogen in petrochemical
and fertilizer production as well as the creation of a stable regulatory
framework to facilitate hydrogen projects.
UK-based Powerhouse Energy’s DMG is an advanced thermal
conversion technology which can produce electrical power and
hydrogen from waste plastics that cannot be recycled, the company
said on its website.
DMG is a “sub-stoichiometric, endothermic gasification process,”
where large amounts of heat are applied to waste plastics, causing
them to break down into constituent molecules. A series of
endothermic reactions then produces syngas.
Powerhouse said the process was significantly more efficient than
incineration or combustion processes.
The DMG system will also provide heat to Konin residents.
— James Burgess
Rains impact Kalimantan thermal coal
production, offer prices shoot north ...from page 1
cargoes, up $3-$4/mt from Aug. 30.
“Our production has slowed down due to rains and we are not
making offers at present as there are no certainties about loading. So
11
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021
we will make offers only when the rains get better,” an Indonesia-
based producer said.
Some miners were heard to have been delaying laycans by about a
week due to heavy rains.
“Demand is strong [for seaborne coal] and it is raining heavily in
South Kalimantan and there is no scope of increasing production this
year. In fact, the production might decrease,” an Indonesia-based
trader said.
Buyers in Vietnam and Thailand stayed on the sidelines as they
waited amid possible production disruption in South Kalimantan,
sources said.
Coal buyers in Vietnam have been on the sidelines for the last few
months because of high prices and freight rates. Buyers are relying on
long-term contracts that were signed earlier or domestic coal
inventories. Traders said that some buyers have been relying on barges
from Indonesia for their requirements.
Chinese inquiries pick up
Traders were heard to have been making inquiries for seaborne
coal, suggesting strong demand, while domestic prices remained
upbeat, according to sources.
“China is definitely making a lot of inquiries. Buyers are also asking
for Columbian and US coal,” a Singapore-based trader said.
Traders in China said that domestic prices remained stable as the
government has directed miners to lower offer prices.
“Some mines are lowering prices, but not all,” a China-based trader
said.
Chinese domestic coal prices remained resilient with offers for
Qinhuangdao 5,500 kcal/kg NAR coal heard at around Yuan 1,170-1,200
[$165.74/mt], while offers for 5,000 kcal/kg NAR coal were heard at
around Yuan 1,050/mt [$162.65/mt], according to sources Sept. 6.
Qinhuangdao port stock levels decreased marginally by 1,000 mt
SUBSCRIBER NOTES
Platts proposes to change cargo size for 2 Asia Pacific Supramax thermal
coal freight assessments
S&P Global Platts proposes to amend the cargo sizes reflected on its Supramax
thermal coal freight assessments for East Kalimantan, Indonesia to Guangzhou,
China, and Richards Bay, South Africa to Port Qasim, Pakistan to 55,000 mt (plus/
minus 10%), from 50,000 mt (plus/minus 10%) currently, effective Nov. 1, 2021.
The proposed change is to more accurately reflect the typical thermal coal
cargo volumes shipped on these routes. Ultramax and Supramax vessels
typically compete for similar sized stems as both vessel classes reflect geared
and grabbed ships, and Platts understands that Ultramaxes have become the
preferred tonnage given their increased availability in the spot market, higher
cargo carrying capacity and better fuel economics.
Almost two-thirds of Supramax/Ultramax thermal coal spot fixtures from South
Africa to Pakistan observed by Platts from January 2020 to July 2021 were basis
55,000 mt (plus/minus 10%). In addition, more than 50% of thermal coal exported
from South Africa to Pakistan over the same period has been on Ultramax class
bulkers, based on data from Platts trade analytics software cFlow.
On the thermal coal route from Indonesia to China, spot fixtures concluded
basis 55,000 mt (plus/minus 10%) have almost quadrupled during the first half
of 2021, compared with the same period in 2020. By comparison, the total
number of spot fixtures on the thermal coal route from Indonesia to China have
© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 12
day on day Sept. 3, with inventories at 3.83 million mt. As many as 36
vessels were in queue, with 10 more expected, sources said.
Indian traders remain on sidelines
Traders in India said that they were reluctant to place orders for
Indonesian coal amid worries about mines declaring force majeure and
concerns about whether vessels would be allowed to load cargoes.
Sources said that availability of the low-CV coal loaded from South
Kalimantan area may be affected due to the heavy rains in the region
and so buyers from India may stay on the sidelines for now.
“Stock-and-sale traders can anyway not take a call in this kind of
market,” an India-based trader said.
A tender that was scheduled to close last week by a South-Indian
power plant was extended further after the plant did not receive
sufficient interest at the desired price, sources said.
Traders said that the plant may not be able to afford coal at the
prevailing market price because they have an agreement with the
government to sell power at a fixed price.
— Rituparna Nath, Suyash Pande
PLATTS THERMAL COAL INDONESIA DAILY RATIONALE
S&P Global Platts assessed the 7-45 day price of FOB Kalimantan 4,200 kcal/kg
GAR coal at $77.55/mt on Sept. 6, up 10 cents from Sept. 3, amid strong demand
and supply tightness.
No trades or bids were heard before the Platts Market on Close assessment
process.
The best offer was heard at $78/mt FOB on Supramax basis, for October-
loading cargo, while a higher offer was heard at $80/mt FOB for September-
loading cargo.
An offer heard at $77/mt FOB on Supramax basis for September-loading cargo
was excluded from assessment as it could not be confirmed before the Platts
Market on Close assessment process.
The above rationale applies to the FOB Kalimantan 4,200 GAR assessment, with
the associated code: CSBKI00
just doubled over the same period, reflecting an increasing market share of
55,000 mt cargo sizes being transported on this route.
Platts may publish pricing data and fixtures reflecting other cargo sizes, but
these may be normalized for assessment purposes.
The affected assessments are:
Assessment name Code
Richards Bay, South Africa to Port Qasim, Pakistan (daily) CRBPB00
Richards Bay, South Africa to Port Qasim, Pakistan (monthly) CRBPB03
Richards Bay, South Africa to Port Qasim, Pakistan Cargo size CRBPBSZ
East Kalimantan, Indonesia to Guangzhou, China (daily) CRYAD00
East Kalimantan, Indonesia to Guangzhou, China (monthly) CRYAD03
East Kalimantan, Indonesia to Guangzhou, China Cargo size CRYADSZ
These assessments are published in the Platts Dry Freight Wire, on Platts
Shipping Alert pages 628,629,630 and 631, and in the Platts price database
under the codes above.
Please send all comments or questions by Sept. 17 to shipping@spglobal.com
and 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
COAL TRADER INTERNATIONAL MONDAY, SEPTEMBER 6, 2021

comments received and will make comments not marked as confidential ly/3zlCmD6), and all Platts FOB Australia metallurgical coal assessments will
available to the public upon request. represent cargoes loading in 7-60 days, and the delivery timing for the
assessments with CFR China incoterms to delivery in 20-75 days. Currently, the
Platts renames Mid Tier PCI to Mid Vol PCI and changes specifications
timing specifications of FOB Australia assessments represent cargoes loading
Following a period of market feedback, S&P Global Platts has renamed the Mid
7-45 days, and the delivery timing for the assessments with CFR China
Tier PCI assessments to Mid Vol PCI, and changed the specifications of the
incoterms to delivery in 20-65 days.
assessments, effective Sept. 1, 2021.
The change of timing specifications of assessments aims to better align the
The renaming of the assessments aims to better align the names of the
loading and delivery timing of various metallurgical coal price assessments with
assessments with the underlying specifications defined in Platts methodology.
the specifications of Platts Premium Low Vol HCC FOB Australia and Platts
The changes in the specifications aim to better reflect the specifications of PCI
Premium Low Vol HCC CFR China defined in the Platts methodology. On April 1,
coals that have been actively traded in the spot market in recent five years.
2021, timing specifications of PLV FOB Australia assessments were adjusted to
The new basis specifications of Mid Vol PCI are:
represent cargoes loading in 7-60 days, and delivery timing for the assessments
Current New with CFR China incoterms to delivery in 20-75 days. The subscriber note can be
VM (AD) 15 19 viewed at: https://bit.ly/3eVMbAp.
Ash (AD) 12 10 Affected price series:
Sulfur (AD) 0.55 0.5 FOB Australia CFR China
CV GAD 7800 7600 Low Vol HCC HCCAU00 HCCCH00
TM (AR) 10 10 Low Vol PCI MCLVA00 MCLVC00
HGI 78 78 Mid Vol PCI MCLAA00 MCLAC00
CSN 1 1 Semi Soft MCSSA00 MCSSC00
Carbon (DAF) 90.50% 85% Peak Downs HCPDA00 MCBAA00
The change will affect the following assessments and all their averages: Saraji HCSAA00 MCBAB00
Oaky North HCOKA00 MCBAR00
Current description Realigned description Symbol
Illawarra HCIWA00 MCBAH00
Mid Tier PCI FOB Australia Mid Vol PCI FOB Australia MCLAA00
Moranbah North HCMOA00 MCBAG00
Mid Tier PCI FOB Australia Mavg Mid Vol PCI FOB Australia Mavg MCLAA03
Goonyella HCGOA00 MCBAE00
Mid Tier PCI CFR China Mid Vol PCI CFR China MCLAC00
Peak Downs North HCPNA00 MCBAJ00
Mid Tier PCI CFR China Mavg Mid Vol PCI CFR China Mavg MCLAC03
Goonyella C HCGNA00 MCBAI00
Mid Tier PCI CFR India Mid Vol PCI CFR India MCVAI00
Riverside HCRVA00 MCRVR00
Mid Tier PCI CFR India Mavg Mid Vol PCI CFR India Mavg MCVAI03
GLV HCHCA00 MCBAF00
The renamed assessments will continue to be published in SBB Steel Markets
Lake Vermont HCC MCBAN00
Daily, Coal Trader International, on the real-time Platts Metals Alert and Platts
Steel, Raw Materials Alert on fixed pages 1051 and 205, and in the Platts price Carborough Downs MCBAO00
database under the symbol mentioned above. Middlemount Coking MCBAP00
Please send comments, questions and other feedback to Poitrel Semi Hard MCBAQ00
pl_cokingcoal@spglobal.com and pricegroup@spglobal.com. The assessments are published in SBB Steel Markets Daily, Coal Trader
For written comments, please provide a clear indication if comments are not International, on the real-time Platts Steel, Raw Materials Alert on fixed pages
intended for publication by Platts for public viewing. Platts will consider all 1064, 205, 1051, 1062, and in the Platts price database under the symbols
comments received and will make comments not marked as confidential mentioned above.
available upon request. Please send comments, questions and other feedback on this decision to
pl_cokingcoal@spglobal.com and pricegroup@spglobal.com.
Platts to align timing specifications of Asian met coal assessments
For written comments, please provide a clear indication if comments are not
Following industry feedback, S&P Global Platts has decided to align the timing
intended for publication by Platts for public viewing. Platts will consider all
specifications of Asian metallurgical coal assessments across varying grades,
comments received and will make comments not marked as confidential
effective Sept. 14, 2021.
The industry feedback received was supportive of the proposal (https://bit. available upon request.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 13