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Monthly J
U
Coal N
Update 21
2 J. M. Baxi & Co. COAL Update | June 2021
June 2021 | J. M. Baxi & Co. COAL Update 3
Contents
Port Anlaysis
COAL & COKE TRAFFIC AT INDIAN PORTS (QTY IN MT)
MAJOR COAL & COKE IMPORTERS (QTY IN MT)
MAJOR COAL & COKE ORIGIN COUNTRYWISE IMPORTS (QTY IN MT)
Market Overview And Trends
Highlights
Disclaimer: The information contained in this market update is drawn from wide range of newspapers, business and trade magazines,
government, company and industry association websites. While all possible care is taken to verify the correctness and authenticity of
information contained in this compilation, no claim to independent authorship of articles is implied or intended. Readers are expected
to make their own independent evaluation and verification of information for their use. While all information contained in this report
are believed to be correct, the editors of this compilation or J. M. Baxi & Co. do not guarantee the quotes or other data and the same is
provided only in good faith.
www.jmbaxi.com
4 J. M. Baxi & Co. COAL Update | June 2021 COAL TRAFFIC AT INDIAN PORTS
June 2021 | J. M. Baxi & Co. COAL Update 5
COAL & COKE TRAFFIC AT INDIAN PORTS (QTY IN MT)
PORT NAME Apr - 21 Apr - 20 VARIANCE
BEDI 0 52000 -52000
BHAVNAGAR 198740 94220 104520
DAHEJ 346282 296004 50278
DHAMRA 1365350 1148613 216737
DIAMOND HARBOUR 0 53143 -53143
DHARAMTAR 457501 116318 341183
ENNORE 1969627 1281831 687796
GANGAVARAM 1444641 1554549 -109908
GOPALPUR 267576 0 267576
HALDIA 1295615 937509 358106
HAZIRA 829839 412667 417172
JAIGAD 555536 541717 13819
KAKINADA 214410 216300 -1890
KANDLA 1069306 1460229 -390923
KARAIKAL 787008 630238 156770
KOLKATA 2214 0 2214
KRISHNAPATNAM 2419588 2378003 41585
MAGDALLA 428193 380811 47382
MANGALORE 467178 229909 237269
MORMUGAO 660005 910822 -250817
MUMBAI 120947 245030 -124083
MUNDRA 2976617 2231704 744913
NAVLAKHI 1079975 449793 630182
OKHA 306348 276686 29662
PARADIP 3999368 3643975 355393
PIPAVAV 252201 169800 82401
PORBANDAR 13809 41600 -27791
RANPAR 0 55000 -55000
TUNA 738319 592076 146243
TUTICORIN 1160710 1204215 -43505
VISAKHAPATNAM 1154926 846621 308305
Grand Total 26581828 22451383 4130445
www.jmbaxi.com6 J. M. Baxi & Co. COAL Update | June 2021
MAJOR COAL & COKE IMPORTERS (QTY IN MT)
IMPORTERS May - 2021
ADANI ENTERPRISES LTD. 2590867
ADANI POWER LTD. 1831441
STEEL AUTHORITY OF INDIA LTD. 1116491
TATA STEEL LTD. 987097
JINDAL STEEL AND POWER LTD. 883989
RASHTRIYA ISPAT NIGAM LTD. 784452
SEMBCORP ENERGY INDIA LTD. 732349
ARCELOR MITTAL NIPPON STEEL INDIA LTD. 536993
AGARWAL COAL CORPN. 535161
COASTAL GUJARAT POWER LTD. 380925
BHUSAN POWER & STEEL LTD. 330191
ADANI EXPORT LTD. 326973
RUNGTA MININGS LTD. 283431
SHREE CEMENT LTD. 254990
JSW ENERGY LTD. 252119
UDUPI POWER CORPN. LTD. 225815
TATA STEEL BSL LTD. 212478
ORISSA METALIKS PVT. LTD. 185890
MOHIT MINERALS PVT. LTD. 180751
GRASIM INDUSTRIES LTD. 170760
www.jmbaxi.comJune 2021 | J. M. Baxi & Co. COAL Update 7
MAJOR COAL & COKE ORIGIN COUNTRYWISE IMPORTS (QTY IN MT)
COUNTRIES May - 2021
INDONESIA 6786979
AUSTRALIA 5719544
SOUTH AFRICA 2739468
CHINA 546035
UNITED STATES 463468
RUSSIA 418208
EGYPT 174531
MOZAMBIQUE 168400
POLAND 114918
SAUDI ARABIA 109620
CANADA 75523
TAIWAN 73748
OMAN 60380
MALAYSIA 58680
IRAN 56000
U.A.E. 53850
BRAZIL 45000
SOUTH KOREA 36317
VIRGINIA 34251
UNITED KINGDOM 31217
BELGIUM 29839
COLOMBIA 28446
JAPAN 22000
VIETNAM 16500
PHILIPPINES 8700
www.jmbaxi.com8 J. M. Baxi & Co. COAL Update | June 2021 TRENDS & MARKET OVERVIEW
June 2021 | J. M. Baxi & Co. COAL Update 9
10 J. M. Baxi & Co. COAL Update | June 2021
HIGHLIGHTS
01
India offering 67 coal mines in second
commercial auction tranche
02
Coal India allows exports to trim high
stocks
www.jmbaxi.comJune 2021 | J. M. Baxi & Co. COAL Update 11
03
Coal India, EMIL and Adani coal
project contribute to India’s rising coal
production
04
Australia exports record high thermal
coal to India
05
Ministry may give green nod to Adani’s
coal-to-PVC plant
www.jmbaxi.com12 J. M. Baxi & Co. COAL Update | June 2021
India offering 67 coal mines in second
commercial auction tranchetonnes in April
01 2021
“
In the largest ever coal mine auction, being auctioned, while 37 are fully
India is bidding out 67 mines with a explored, the balance 30 have been
total resource base of 36 billion tonnes partially explored. These mines
of fossil fuel in the second tranche are spread across Chhattisgarh,
Starting form of commercial coal mine auctions. Jharkhand, Odisha, Madhya Pradesh,
this tranche, the Also, starting form this tranche, the Maharashtra and Andhra Pradesh.
government is government is introducing a rolling “The commencement of sale of
auction mechanism “wherein any tender document started from 25th
introducing a rolling
un-auctioned mine shall remain March 2021 and the bid due date is
auction mechanism
available for auction on the portal, 24th June 2021," the statement said.
‘wherein any un-
with more mines being added as and The two-stage auction process allows
auctioned mine bidders to quote the percentage
when available," said M. Nagaraju,
shall remain additional secretary in the union coal revenue share over the reserve price.
available for auction ministry, and the nominated authority Besides there will be no restriction
on the portal, with for these auctions in a ministry’ on the sale and utilization of coal
“
more mines being
added as and when
available’
statement on Thursday.
India has the world’s fourth largest
reserves and is the second-largest
from the mines. Earlier, blocks were
allocated to companies on payment
of fixed amounts per tonne. "The
producer of coal. With global shift auction shall be held online through
to green energy to address growing a transparent 2 stage process. Key
environmental concerns, the Indian highlights of this auction process are
government is trying to harness - market linked mechanism wherein
coal reserves within the next three bidding shall be based on Percentage
decades. “We are offering 67 mines Revenue Share, National Coal Index
with a total resource of almost 36 linked payments, ease in participation
bn and explored mines PRCs of with no restriction for prior coal
about 150 million tonnes (mt) during mining experience, optimized
2nd tranche auctions of coal mines payment structures, efficiency
for commercial mining. This is the promotion through incentives for
biggest ever offer of coal mines early production and use of clean
in the country," Nagaraju added in technology, flexible operating terms
the statement. Of the 67 blocks etc.," the statement added
Source: Live Mint
www.jmbaxi.comJune 2021 | J. M. Baxi & Co. COAL Update 13
02 Coal India allows exports to trim high stocks
“
CIL, which meets more than 80pc Authority data. The country's coal-
of India's coal needs, removed the fired generation rose from a year
embargo on coal exports purchased earlier for eight straight months until
State-controlled through e-auctions, the company April. But a surge in Covid-19 cases
said. India has historically been a and resulting restriction across
producer Coal
coal importer, exports of which have the country has weighed on power
India (CIL) is
largely been restricted. The company demand and prompted the build in
permitting
amended the rules earlier this week coal inventories. CIL, which raised its
exports of coal to allow exports of coal sold under May output by 700,000t or 1.7pc to
sold through future auctions. Buyers that intend 42.1mn t from a year earlier, has been
its electronic or to export coal must comply with holding regular auctions to bring down
e-auctions in a standard regulatory requirements inventories and discourage imports.
move aiming
“
to trim its high
inventories.
and guidelines for exports. CIL will
not be responsible for these. CIL sold
124mn t of coal through e-auctions in
India is a net importer of coal, although
it exports small quantities to nearby
markets like Nepal and Bhutan. Of
the 2020-21 fiscal year that ended 31 the 731mn t coal produced in 2019-
March, up by 88pc from a year earlier. 20, just 139,000t of thermal coal
Out of the e-auctioned volume, power was exported to Nepal and Bhutan,
and non-power sector consumers according to India's commerce
took the majority. Some of these ministry. The two countries imported
auctions were also open for trading about 68,000t of Indian thermal coal
firms, which primarily may evaluate in the first 11 months of 2020-21.
export opportunities that are likely India's thermal coal imports rose
to be to nearby destinations such as by 2.88mn t from a year earlier to
Bangladesh, said a market participant. 14.04mn t in April, according to data
CIL's inventories fell to 74.3mn t as from shipbroker Interocean. But the
of 31 May from 87.12mn t at the end increase in April was from a low base
of April but are still historically high. a year earlier when the country's
Utilities across the country held total Covid-19 lockdown restrictions
inventories of 28.66mn t as of 30 significantly reduced the country's
May, up from 23.87mn t at the end of import demand
April, according to Central Electricity
Source: Argus Media
www.jmbaxi.com14 J. M. Baxi & Co. COAL Update | June 2021
Coal India, EMIL and Adani coal project
03 contribute to India’s rising coal production
“
2020 was a tumultuous year for to the prediction. Coal Secretary
everyone. The economy suffered Anil Jain said, “We are on track to
greatly as industries grinded to a producing 700 million tonnes of coal
halt. However, certain sectors held in 2020-21 fiscal. We will be able to
MDO operations up better than the rest and even cut substitutable coal imports with
showed stable performances. One this rise in production.” The Centre’s
undertaken by EMIL,
such sector is the Indian coal mining. decision to hold auctions for coal
Dilip Buildcon, VPR
mines also turned out favorably for
Mining and Adani Coal India Ltd(CIL), the largest coal- players like Adani Group and Vedanta,
coal project will producing company in the world, where they made significant gains for
prove indispensable accounts for almost 82% of the total their future coal projects. Adani, in
“
if India is to reduce
its coal imports
production with the rest contributed
by the Vedanta, Emil, Dilip Buildcon
and AdaniCoal Project. Coal
particular, made successful bids for
a number of mines, with Gondulpara
mine in Jharkhand and Dhirauli
production in India was 730.87 million mine in Madhya Pradesh being the
tonnes in 2019-20 as compared to notable ones. On the completion
728.72million tonnes in 2018-19, of preliminary operations, every
which shows a modest growth of single Adani coal project will start
0.30%. Out of total, CIL produced production in earnest. This will add to
602.15 MT in 2019-20 despite the India’s total coal production, relieving
pandemic. It had previously recorded the pressure of the ever-growing
606.89 MT. While most MDO domestic demand. Additionally, CIL
companies have recently entered has identified 15 mining projects
the coal industry, their coal projects for MDO operations in an effort to
have been churning out impressive increase the production. MDOs are
figures. For example, EMIL produced becoming the preferred model for coal
an impressive 11.44 MnTe of coal mining with at least 28 mines being
just a year after it commenced operated by them.MDO operations
operations. Similarly, Adani’s Parsa undertaken by EMIL, Dilip Buildcon,
East & Kanta Basan coal block has VPR Mining and Adani coal project
a peak capacity of 15 MMTPA. One will prove indispensable if India is to
can certainly expect the Adani coal reduce its coal imports. Coal-fired
project to pump out huge numbers power plants supply the country with
too. India imports 235 million tonnes almost 80% of its electricity. Domestic
of coal annually. Almost half of the demands will slowly be met by every
imported coal is non-substitutable EMIL, Hindalco, VFR and Adani coal
as its grades are not available in the project, rendering coal imports
country. However, the increasing redundant. The Home Minister had
production from every single EMIL, earlier said that the coal sector
VFR and Adani Coal Project means would be a valuable contributor to
that this figure could be cut in half. India’s growing economy. This bodes
India’s coal imports have already well for the sector as the CIL, EMIL,
fallen by 14% to 196.13 million in Vedanta and Adani coal projects can
the last fiscal, lending legitimacy expect ample investments
Source: DNA
www.jmbaxi.comJune 2021 | J. M. Baxi & Co. COAL Update 15
Australia exports record high thermal coal to
04 India
Australia's thermal coal exports of 2020 following Covid-19 shutdowns
15.24mn t in April increased by 14pc that slowed industrial activity. India,
from the eight-year low in March which is in the midst of a Covid-19
Australia but declined by 7pc from April 2020, surge, has more than compensated
exported according to data from the Australian for lower imports in the first half of
record high Bureau of Statistics (ABS) supplied 2020 and Australian exports to the
volumes of 05 through GTT. There were no shipments nation hit a record high of 2.46mn t
to China for the fourth consecutive in April. This may reflect a larger than
thermal coal to
month, with initial shipping data average discount for low grade 5,500
India in April,
suggesting this continues into early kcal/kg NAR Australian coal export
as changing
June. Shipments to Vietnam have also prices compared to similar grade
trade flows declined this year, and together these South African export prices in April.
reflect Beijing's two factors have lowered January- This premium widened in early to mid-
ban on imports April total shipments by 10pc on the May but has since shrunk. Australian
of Australian year. This decline has been partially exports continued to move to smaller
coal. offset by increased shipments to markets for its coal such as Indonesia,
India, South Korea, Taiwan and Thailand, the Netherlands, Malaysia,
Japan in January-April. The higher United Arab Emirates, the Philippines
shipments to South Korea, Taiwan and Pakistan, as suppliers continue
and Japan are related to lower than to look to diversify in response to
average coal buying in the first half of Beijing's import ban
Source: Argus Media
www.jmbaxi.com16 J. M. Baxi & Co. COAL Update | June 2021
Ministry may give green nod to Adani’s coal-
05 to-PVC plant
“
2020 was a tumultuous year for coal, is not suitable for use in plastics.
everyone. The economy suffered It is suitable for use in energy and
greatly as industries grinded to a electricity generation and has always
halt. However, certain sectors held been intended for that use.” It added
The environment up better than the rest and even that “India will be a foundation
showed stable performances. One
ministry’s impact customer for the Carmichael Project
such sector is the Indian coal mining. and is the fourth largest global user
assessment division
of electricity as well as the source of
granted standard Union environment ministry is the biggest growth in global energy
terms of reference considering granting environmental demand (source International Energy
(TOR) to the plant clearance to a coal-to-PVC plant that Agency).” According to documents
on April 17. The will come up in Gujarat’s Kachchh on Parivesh website, no change in
grant of TOR is one district, said people familiar with land use will be required as 278.79
of the first steps in the matter. The unit that is being set
“
the environmental
clearance process.
up by Adani Enterprises will have a
poly-vinyl-chloride (PVC) production
capacity of 2000 KTPA (Kilo Tons
ha of identified land for the project
belongs to the Adani Ports and SEZ
(APSEZ) and is already designated for
industrial purpose. Forest clearance
Per Annum) requiring 3.1 million for 1840 ha of forest land was granted
metric tonnes per annum (MTPA) in 2009. The rationale for the project
of coal that will be imported from according to Adani Enterprises’
Australia, Russia and other countries. submission to the environment
The environment ministry’s impact ministry is that PVC demand in India
assessment division granted is around 3.5 MTPA which is growing
standard terms of reference (TOR) at the rate of 7% year on year. With
to the plant on April 17. The grant of stagnancy in domestic production of
TOR is one of the first steps in the PVC at 1.4 MTPA, India is dependent
environmental clearance process. on imports to keep pace with the
The project will come up at a cost demand. “Adani Group is the largest
of ₹29,000 crores (US $ 4 billion). private power producer in India.
Coal is likely to be blended with pet Power is an important raw material
coke , and blending of other coals for powering extensive plants such
such as Anthracite Coal is also being as coal to PVC. In this context, Adani
explored for the project according to group is planning to come up with
documents on environment ministry’s a coal-to-PVC project at Mundra,
Parivesh website, seen by HT. A report Bhuj, Gujarat. The proposed project
in the Guardian published on June 18 will reduce import dependency of
suggested that the PVC unit will be polymers and promote domestic
using coal from Bravus Mining and manufacturing of polymers, in
Resources’ (formerly Adani Australia) line with the Atmanirbhar Bharat
Carmichael coal mine which is mired initiative,” the pre-feasibility report
in environmental controversies of the project states. In response to
and litigation. Bravus Mining and a questionnaire from HT, an Adani
Resources, however, put out a spokesperson said: “At the outset,
statement on Friday that “Carmichael coal from the Carmichael Project in
coal, like any other traditional thermal Australia is not suitable for the PVC
www.jmbaxi.comJune 2021 | J. M. Baxi & Co. COAL Update 17
plant. Secondly, it is widely proven that The member secretary (Industrial
using coal as a chemical feedstock Projects) of the expert appraisal
to produce PVC is less polluting as committee assessing the project
compared to conventional methods was not available for comment on
such as petrochemical refinery and Friday, his secretary said. A senior
ethylene cracker. Further, PVC is not environment ministry official said
toxic or single-use plastic, but an “all the information is available on
infrastructure material with a life span the website. We have nothing else
of several decades.” “Thirdly, given to add.” According to an Overview
that the project is energy-intensive , on Plastic Waste released by the
the Adani Group’s massive renewable Central Pollution Control Board in
capacity of 24+ GW will enable it to 2013, during polymerization process
make this a low carbon-intensive fugitive emissions are released.
project,” the spokesperson added.
Source: Hindustan TimesOther Reports for June 2021
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