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1 Join us LinkedIn to network and initiate cversatis with other stakeholders in the India Steel Market Watch group. Click ICMW Updates Headlines of August 2: Soft trend persists in internatial coal markets Power utilities -16 coal import target cut 2% India s July coking coal output dips.3% m-o-m CIL s July washed coking coal output up % m-o-m India s July coal despatches down 1.0% m-o-m India s July pithead vendible stocks up 21% y-o-y Chennai s July steam coal imports double m-o-m July coking coal imports via Chennai at 11 ts Chennai s July pet coke imports drop 1% m-o-m Jul met coke imports via Chennai Port at 12 ts Chennai s July anthracite imports up 2% m-o-m No PCI imports through Chennai Port for mths No pet coke exports through Chennai Port in July Chennai Port gypsum imports surge in July m-o-m No gypsum exports via Chennai Port for mths Soft trend persists in internatial coal markets August 2: Reeling under the impact of the weak Chinese currency and prospects of low demand from the country, spot coal prices in major markets softened further August 26, market sources said. The trend is likely to ctinue at least till the next few weeks, they said. Following are the indicative prices of coal in various markets and indicative freight rates (Panamax vessels) August 26: Descrip ti of Specific ati As, As, Week ago, August 26, August 2, August 1, Price/t (in $ and FOB) 6-mth ago, Year ago, February August 2, 2,

2 South African Steam South African Steam Australi an Steam Inde sian Steam Inde sian Steam Inde sian Steam Inde sian Steam Hard Coking (Austra lian) Premiu m Low Vol 6000 Kcal/kg NAR Kcal/kg NAR Kcal/kg GAR Kcal/kg GAR Kcal/kg GAR Kcal/kg GAR Kcal/kg GAR VM- 20.%, Ash- 10.% VM- 21.%, Ash-.3% Semi Soft Met Coke (CFR India) Freight rates: (in $/t) As As Week ago, 6-mth ago, Year ago, Destinati August 26, August 2, August 1, February 2, August 2, South Africa (RBCT) to India (West Coast)

3 South Africa (RBCT) to India (East Coast) Indesia (Kalimant an) to India (West Coast) Indesia (Kalimant an) to India (East Coast) Australia to India Source: Traders and ICMW database Power utilities -16 coal import target cut 2% August 2: Increased availability of domestic coal has prompted the Central Electricity Authority (CEA) to cut the coal import target for -16 for power utilities by nearly 2%, an official told ICMW. The initial target set at the beginning of the year for -16 for power utilities was 113 milli ts (mt), but it has now been reduced to mt, according to data available with ICMW. The import target has been revised in view of the increased availability of domestic coal, an official of CEA told ICMW. There is practically no shortage of coal at power plants and as such there was a need to reduce the import target. There is no need to push them to go for imports if there is sufficient availability of domestic coal, the official said. Total imports by power utilities during the first four mths of -16 stood at 2. mt, down % compared to mt imported during the correspding period of -1. Imports of coal by utilities like Rosa Power Limited during the first four mths of -16 were down nearly 100% even as imports by NTPC remained higher by % compared to last year s same period. Following the downward revisi in import targets, ICMW understands the total imports by power utilities may decline by 1-20% to a level of - mt in -16 from actual imports of around 2 mt in -1. Following table gives details of plant-wise revised target versus original target (in thousand ts):

4 Board/ PU. P.House Revised Target (- 16) Prerevised Target (- 16) Torrent AEC Ahmedabad Gandhinagar Ukai GSECL Wanakbori Sikka Total Budge-Budge New Cossipore(CESC) CESC Titagarh S. Gen Stn. Haldia Total 100 Reliance Energy Dahanu Panipat HPGCL Yamunanagar RGTPS Total HPGCL IPGCL PSEB I.P. Stati(Rajghat) L.Mohabbat Ropar

5 Bhatinda Total PSEB 00 Vijayawada APGENCO Royalseema Kothagudem Total APGENCO Kolaghat Bandel WBPDCL Sagardihi Santhaldih Bakreshwar Total WBPDCL 00 DPL Durgapur(DPL) Mejia Durgapur DVC Bokaro Chandrapura Total DVC 1000 Obra UPRVUNL Panki Paricha Total UPRVUNL 00 Suratgarh RRVUNL Kota Chabra

6 Total RVNL Nasik Khaperkheda Parli MAHAGENCO Paras Bhusawal Koradih Chandrapur Total MAHAGENCO MPGCL Total MPGCL(Birsingpur, Satpura & Amarkantak) 1200 Ennore Mettur TANGEDCO Tuticorin N.Chennai Total TNEB Bellary KPCL Raichur Total KPCL OPGCL Total OPGCL Dadri Badarpur NTPC Tanda Unchahar Talcher

7 Talcher STPS Simhadri Ramagunden STPS Kahalga STPS Farakka STPS Sipat STPS Korba STPS Rihand/Singrauli/Vindhyachal Total NTPC LANCO ANPARA C 100 NTPC (JV) IndGandhi Reliance Energy ROSA STERLITE ENERGY (JHASUGUDA) NTPC SAIL POWER Co(BHILAI) TATA (MAITHONRB) NTECL(Vellur) Adani Power(Tirora) Durgapur Steel Bina JPL(Mahatma Gandhi) EMCO ENERGY MAUDA KODARMA MAHADEV PRASAD STPP Vedanta(Star) 100

8 NABHA Power(RAJPURA) Akaltara Shree singhaji TPP Torangallu MOSER BEAR 1000 TALWANDI SABO TPP BARH II 1000 PATHADIH GMR(KAMALANGA) VIPL(Butibori) 00 RATTANTATA(Amravati) TAMNAR TPP 00 TUTICORIN JV HALDIA ENERGY BAJAJ ENERGY 100 PYNAMPURAM KAWAI WARDHA WARORA TOTAL IMPORT(EXCLUDING IMPORT BASED PLANTS) JSW ENERGY UDUPI TPP ADANI POWER(MUNDRA TPS) MUNDRA UMTPP

9 TROMBAY ESSAR SALAYA SIMHAPURI THAMMINAPATNAM IND BARATH (tuticorin) TOTAL (IMPORT BASED PLANTS) TOTAL IMPORT The imports of steam coal by Indian power utilities might decline a bit in the current financial year as against around 2 milli ts (mt) imported in -1, an official from the Central Electricity Authority (CEA) told ICMW. India s July coking coal output dips.3% m-o-m August 2: India s coking coal producti in July stood at.0 milli t (mt), down.3% from.3 mt recorded in June, according to provisial data available with ICMW. Producti targets for the mth of July as well as for -16 were not available. India s coking coal producti in July, however, was up 3.32% from 3.2 mt in the same mth of last year (June ). Coking coal producti in the first four mths (April-July) of the current fiscal (-16) stood at 1.3 mt, down 1.0% from 1. mt recorded in the same period of the previous fiscal. In July, coking coal producti at CIL was up from that of June as well as from that of June. July coking coal producti at CIL stood at 3. mt, up from 3.2 mt produced in the same mth (July) of. CIL s July coking coal output, however, fell short of the target of 3.3 mt set for the mth (June) and was also down from 3.6 mt produced in June. In May, CIL s coking coal producti stood at 3. mt. In April, CIL s coking coal producti stood at.0 from 6.2 mt produced in March. In February, CIL s coking coal producti

10 stood at.20 mt while in January, the same stood at. mt. In December, CIL s coking coal producti stood at. mt, in November at.30 mt and.01 mt in October. CIL s coking coal producti in September stood at 3.6 mt, while in August it was at 3. mt. In July it stood at 3.36 mt, in June, producti of the same stood at 3.2 mt. In May, coking coal producti by CIL was at 3.2 mt while the same was 3.3 mt in April. CIL s July washed coking coal output up % m-o-m August 2: Washed coking coal producti by India Limited (CIL) in July stood at 0.1 milli ts (mt) against 0.12 mt in June, registering a rise of.61%, according to provisial data available with ICMW. For July, washed coking coal producti by CIL increased 20.% from mt in the same mth a year ago (July ). CIL s washed coking coal output target for the mth of July was.6% of 0.16 mt set for the mth. Washed coking coal producti by India Limited (CIL) in the first four mths (April- July) of the current fiscal (-16) stood at mt against 0.62 mt seen in the same period of the previous fiscal, registering a drop of 1.%. Washed coking coal producti by CIL was 6.% of the target of 0.26 mt set for the period. India s July coal despatches down 1.0% m-o-m August 2: India s coal despatches in the mth of July stood at.01 milli ts (mt), down 1.0% from. mt recorded in June, according to provisial data available with ICMW. India s July coal despatches registered a growth of 2.% from.0 mt recorded in the same mth a year ago. despatches in the first four mths (April-July) of the current fiscal (-16) stood at.3 milli ts (mt), up 3.1% from 1.1 mt recorded in the same period of the previous fiscal. India s coal despatches from April to July, -16 were.20% of the mt target set for the period. Of the total coal despatched in July, CIL s share stood at 0. mt, up from 3.6 mt in the same mth a year ago. The coal despatch target for the mth of July was.1 mt for CIL. despatches from Singareni Collieries Company Limited (SCCL) and captive blocks stood at.0 mt and 3.0 mt respectively in July, up from.10 mt and down from.6 mt in the previous fiscal respectively. despatches target for the mth of July were.0 mt and.3 mt for SCCL and captive blocks respectively.

11 The annual and mthly despatch targets for -16 and July were at 6.63 mt and 6.0 mt respectively. The following chart provides mthly coal despatch volumes in FY16, FY1 and FY1, (in milli ts): Mth April May June July August September October November December. 1.1 January. 3.3 February March.1.1 Total (Apr-Jul) Total (Apr-Mar) India s July pithead vendible stocks up 21% y-o-y August 2: India s pithead vendible coal stocks were up 20.6% to.3 milli ts (mt) as the last day of July against 36. mt as the last day of July, according to provisial data available with ICMW. However, a mth--mth basis, India s pithead vendible coal stocks fell from 1.0 mt recorded as the last day of June. The increase could be attributed to higher pithead vendible stocks of India (CIL) subsidiaries such as South Eastern fields Limited (SECL), Eastern fields Limited (ECL), Bharat Coking Limited (BCCL), Central fields Limited (CCL) and Northern fields (NCL) where inventories rose to.2 mt, 1. mt, 3. mt, 6.1 mt and.23 mt respectively as July 31, as against.3 mt, 1.1 mt, 3.30 mt,.16 mt and 2. mt respectively as July 31,. The following table gives detailed break-up of pithead vendible coal stocks with coal companies as of July 31,, June 30,, May 31,, April 30,, March 31,, February 2,, January 31,, April 30, and June 30, (in milli ts): Sl. No. Name of the compa ny PITHEAD VENDIBLE CLOSING STOCK (company-wise) July 31 June 30 May 31 April 30, Marc h 31, Feb 2, Jan 31, April 30, July 31 June 30,

12 1 ECL 2 BCCL 3 CCL NCL WCL 6 SECL MCL NEC CIL SCCL.3 11 TOT AL OTHER S** Source : CIL,SCCL and Public and Pvt. companies ** Excluding Meghalaya Chennai s July steam coal imports double m-o-m August 2: Steam coal import volumes through Chennai Port in July more than doubled to 20 ts. A volume of 100 ts had been imported in June this year as well as in May, as per provisial informati available with ICMW. There were no imports of the fuel from August till April. In July, imports included 132 ts from Colombia at a range of Rs 21,600 Rs 21,60 per t ($23) and ts from the Netherland at a unit price of Rs 21,1 ($33). June imports included 2 ts from Australia, Rs 1,321/t ($23), 1 ts from the Netherland at a unit price of Rs 21,1 ($32) and 2 ts from Russia at a unit price of Rs 13,061 ($202). It may be noted that coal handling at Chennai Port has been suspended since October 2 following a ban imposed by the Madras High Court handling of dirty cargo of coal and ir ore at the port with effect from October 1, 1. The court order came following the hearing of public interest litigati (PIL). However, old stocks are getting cleared.

13 July coking coal imports via Chennai at 11 ts August 2: Coking coal imports through the port of Chennai in July were at 11 ts. However, the port saw nil imports of the material in June and May, while April saw a mere ts, as per provisial informati available with ICMW. In July, all csignments arrived from the UK at price range of Rs 2,63 Rs 30,262 ($62-6) per t. It may be noted that coal handling at Chennai Port has been suspended since October 2 following a ban imposed by the Madras High Court handling of dirty cargo of coal and ir ore at the port with effect from October 1, 1. The court order came following the hearing of public interest litigati (PIL). However, old stocks are getting cleared. Chennai s July pet coke imports drop 1% m-o-m August 2: Pet coke imports through Chennai Port were at a volume of 32 ts in July while in June these were at 2 ts, dropping 0.1% mth--mth, as per provisial informati available with ICMW. Imports of the material in July stood at 612 ts. Total imports of the material in the first four mths (April-July) of -16 stood at 1,6 ts against 1,0 ts recorded in the same period of the previous fiscal. Imports of pet coke through the port in financial year -1 stood at 3,2 ts. The following table ctains mth-wise import figures of pet coke via Chennai Port during -16 and -1:

14 Mth -16 (in ts) -1 (in ts) April May June July August 16 September 3 October November 1,03 December 10 January 32 February 110 March 0 Total April to March 1,6 3,2 July imports comprised 33 ts from China in a range of Rs 22,01 Rs 6,00 per t ($33-1), 2 ts from Germany at a price of Rs 0,3 ($636)/t, 1 ts from Sweden at Rs 3,32/t ($1,11), 3 ts from Japan at a price range of Rs 1,06,30 ($2,-,001) and 0.10 t from Switzerland at Rs 33,6/t ($11,36). June imports comprised 2 ts from China in a range of Rs 21,3 Rs,3 per t ($331-3), 2 ts from Germany at a price range of Rs 1,001 1,1 ($633-60), 1 ts from Sweden at Rs 3,61/t ($1,11), 0 ts from Hg Kg at a price range of Rs 22,02 22,23 ($33-3), 1 ts from Japan at a price range of Rs 1, 2,1 ($303-,26), and a mere t from the UK at Rs 2,6/t ($13). handling at Chennai Port has been suspended since October 2 following a ban imposed by the Madras High Court handling of dirty cargo of coal and ir ore at the port with effect from October 1, 1. The court order came following the hearing of public interest litigati (PIL). However, old stocks are getting cleared. Jul met coke imports via Chennai Port at 12 ts August 2: Met coke imports through Chennai Port in July were at 12 ts while there were no imports from February- June,. A mere 36 ts were imported in January, as per provisial informati available with ICMW. In July, a volume of 12 ts arrived from China at a unit price of Rs 1,2 ($26) and 1 t from the US at Rs 2,3/t ($26). Chennai s July anthracite imports up 2% m-o-m August 2: Anthracite coal imports via Chennai Port increased by 2.16% to 1,20 ts in July against 60 ts in June, as per provisial data available with ICMW.

15 In July, all the csignments arrived from China at a price range of Rs 1,06 -Rs 2,26 ($26-36) per t. In June, all the csignments arrived from China at a price range of Rs 20, -Rs 2,130 ($316-3) per t. No PCI imports through Chennai Port for mths August 2: There have been no PCI coal imports through Chennai Port in January - July,, according to provisial data available with ICMW. In December, the entire csignment arrived from UK at a price range of Rs 2,- Rs 2,03 ($6) per t. No pet coke exports through Chennai Port in July August 2: There were no pet coke exports through Chennai Port in July while in June these were at a negligible 6 ts, as per provisial informati available with ICMW. In June, the csignments were sent to Oman in a band of Rs 30,012 Rs 31,121 per t. Chennai Port gypsum imports surge in July m-o-m August 2: Gypsum imports through Chennai Port surged to,1 ts in July against a much lower 2,3 ts in June, as per provisial informati available with ICMW. Imports of the material in July stood at an equally low figure of 1, ts. Total gypsum imports through the port in the first four mths (April-July) of -16 stood at 10,06 ts against a much more modest 2,13 ts in the same period of the previous fiscal. Imports of gypsum through the port in financial year -1 stood at 21,0 ts. The following table ctains the mth-wise import figures of gypsum via Chennai Port during -16 and -1: Port CHENNAI GYPSUM IMPORT, CHENNAI Mth QTY APR 31,663 1,1 MAY 1,0 1, JUN 2,3 JUL,1 1,

16 AUG 2,66 SEP 2,66 OCT 6,30 NOV 2, DEC 2,63 JAN 1,66 FEB 26,2 MAR,012 CHENNAI APRIL TO JULY TOTAL 10,06 2,13 CHENNAI APRIL TO MARCH TOTAL 21,0 July imports comprised a volume of ts from China at a price range of Rs 13,13 Rs 2,3 ($20-36) per t, ts from Denmark at a price range of Rs,020 Rs, ($1,202-1,36), 1,2 ts from Iran at a range of Rs 3, Rs,3 ($60-6), 3 ts from the UAE at Rs,03-Rs, ($-$1) per t, 1 ts from Thailand at a price range of Rs,-Rs 36,20 ($13-6) per t, 1,0 ts from Vietnam at a price band of Rs 10,30-Rs 11,3 ($162-$1) per t and 10 ts from the US in a range of Rs,,3 ($0-06) per t. June imports comprised a volume of 106 ts from China at a price range of Rs 1,2 Rs 2,636 ($221-3) per t, 26 ts from Iran at a unit price of Rs 3,6 ($60), 1 ts from the UAE at a price range of Rs,22-Rs,601 ($3-$1) per t, 66 ts from Thailand at a price range of Rs,0-Rs 12,0 ($1-1) per t, 600 ts from Vietnam at a price range of Rs 11,-Rs 11,3 ($1-$1) per t, amgst others. No gypsum exports via Chennai Port for mths August 2: There have been no gypsum exports through the port of Chennai from January- July, while the material fell sharply to a mere 3 ts in December, as per provisial informati available with ICMW. In December a single csignment went to Oman at a unit price of Rs 2,3.