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COAL TRADER INTERNATIONAL

Volume 21 / Issue 221 / Monday, November 15, 2021

Lackluster buying interest for Asian thermal DAILY PROMPT PHYSICAL THERMAL COAL ASSESSMENTS, NOV 15

coal even as prices cool CV (kcal/kg) Window Platts symbol $/mt Chg

Asia-Pacific
■■Chinese buyers postpone laycan Northeast Asia
■■Indian buyers await price correction Platts NEAT 5,750 NAR 15-60 day JKTCA00 140.55 +0.01

South Asia
Buyers of Asian thermal coal showed limited interest even as prices Platts SEAT 4,200 GAR 15-60 day CSEAA00 91.50 -2.00
CFR Pakistan 5,750 NAR 30-60 day TPKCA00 199.00 -11.00
edged lower, preferring to wait for prices to stabilize further, sources CFR Bangladesh 5,000 GAR 30-60 day TCBAN00 126.65 -0.25
said Nov. 15. Sulfur Differential TCSDA00 0.30

“There is room for prices to correct as there is not much buying China
interest and China’s domestic production has been improving,” a PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPQ00 92.50 -2.05
PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPP00 125.25 -0.30
Singapore-based trader said. PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSC00 158.80 -0.30
Yuan/mt
(continued on page 14) PCC 6 (CFR South China) 3,800 NAR 30-60 day PCCPR00 587.99 -13.03
PCC 6 (VAT included) 3,800 NAR 30-60 day PCCPS00 664.43 -14.72
PCC 7 (CFR South China) 4,700 NAR 30-60 day PCCPO00 796.16 -1.91
PCC 7 (VAT included) 4,700 NAR 30-60 day PCCFB00 899.66 -2.16
NEWS HEADLINES PCC 8 (CFR South China) 5,500 NAR 15-60 day PCCSD00 1009.43 -1.91
PCC 8 (Duty & VAT included) 5,500 NAR 15-60 day PCCFA00 1140.66 -2.15

Oct thermal coal derivatives volume down 9% Indonesia

FOB Kalimantan (Geared Supramax) 4,200 GAR 7-45 day CSBKI00 79.95 -2.00
on month to 57.6 million mt: LEBA FOB Kalimantan (Geared Supramax) 3,800 GAR 7-45 day CSCKJ00 59.25 -0.25
FOB Kalimantan (Geared Supramax) 5,900 GAR 90-day CSAKH00 148.75 -0.25
■■Jan-Oct volumes down 23% on year
FOB Kalimantan (Geared Supramax) 5,000 GAR 90-day CSAKI00 112.70 -0.25
■■CIF ARA accounts for 73% of all volume Kalimantan Floating Crane AKFCA00 2.00

Australia
CHINA DATA: National carbon market price dips 0.1% FOB Newcastle 20% Ash 5,500 NAR 7-45 day AAVUW00 110.80 0.00
on week to $6.66/mtCO2e FOB Newcastle 23% Ash 5,500 NAR 7-45 day AAVVB00 107.95 0.00
FOB Newcastle Ash Differential AAVVA00 0.94
■■5-day trade volume rises 39% on week to 2,740,012 mtCO2e
India
■■Weekly trade volume seen rising steadily since October
CFR India West (Gearless Panamax) 5,500 NAR 30-60 day CIWCI00 130.75 0.00
CFR India West (Gearless Panamax) 5,000 GAR 30-60 day TCAKP00 128.40 -0.30
COP26: Nations strike deal on international carbon CFR India West (Gearless Panamax) 4,200 GAR 30-60 day TCAKT00 95.65 -2.05

markets at Glasgow summit CFR India East (Gearless Panamax)

CFR India East (Gearless Panamax)
5,500 NAR
5,000 GAR
30-60 day
30-60 day
CIECI00 132.40 0.00
TCAKJ00 127.05 -0.30
■■Countries nail down rules after six years of haggling CFR India East (Gearless Panamax) 4,200 GAR 30-60 day TCAKU00 94.30 -2.05

■■Agreement avoids double counting of emissions reductions Atlantic Basin

Europe
DELIVERED INDIA 5,500 kcal/kg NAR CIF ARA 6,000 NAR 15-60 day CSARM01 132.00 -10.50
European Blended Price (EBP) 6,000 NAR 15-60 day TEBPA00 136.75 -0.25
($/mt) EBP/CIF ARA Differential 6,000 NAR 15-60 day TEBPB00 4.75 +10.25
250
South Africa
FOB Richards Bay 5,500 NAR 7-45 day AAXEX00 100.35 -1.85
200 North America
FOB Baltimore 3%S 6,900 NAR 15-60 day CUATB04 129.40 -9.45
RB FOB Hampton Roads 1%S 6,000 NAR 15-60 day CUAEA04 128.00 0.00
150 Newcastle FOB New Orleans 3%S 6,000 NAR 15-60 day CUAFA04 109.95 -0.05
FOB Long Beach 0.5%S 6,000 NAR 15-60 day CTLBA00 115.90 0.00
FOB Oakland 0.5%S 6,000 NAR 15-60 day CTOKA00 107.50 0.00
100 FOB Vancouver 0.5%S 5,000 NAR 15-60 day CTVCA00 68.85 0.00
Note: In the absence of transactional data, these assessments represent theoretical value
for export.
50
Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21

Source: S&P Global Platts

www.platts.com www.twitter.com/PlattsCoal
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

Indonesia’s Sep thermal coal exports rise 14% WEEKLY PROMPT PHYSICAL THERMAL COAL PRICES, NOV 12
Code Kcal/kg Basis Sulfur $/mt Change
on year to 27.3 mil mt: customs CIF Med 75kt CTCMT04 6,000 NAR 0.8% 193.00 -5.00
CIF Med 45kt CTCMA04 6,000 NAR 0.8% 200.00 -4.00
■■Exports to China remain at record levels FOB Colombia CSABZ00 6,000 NAR 0.8% 175.00 -5.00
FOB Russia Baltic CSAKC00 6,000 NAR 0.5% 168.00 -20.00
■■Demand from India down on year-ago basis
FOB Russia Pacific CSAKG00 6,300 GAR 0.3% 140.00 -10.00

Indonesia exported 27.3 million mt of thermal coal in September, up PLATTS PHYSICAL THERMAL COAL NETBACKS, NOV 15
14% on the year and flat on the month, according to customs data Code CV Basis Sulfur $/mt Chg
published Nov. 15. (kcal/kg)
Coal ($/mt)
This continued strength in export volume – September’s volume
CIF ARA CSARM01 6,000 NAR 1.0% 132.00 -10.50
was the highest of the year alongside August volume – comes despite Platts NEAT JKTCA00 5,750 NAR 1.0% 140.55 +0.01
ongoing rainfall, which had been heard to negatively impact coal CFR India West CIWCI00 5,500 NAR 0.8% 130.75 0.00
production and logistics in the country for most of 2021. Panamax Freight ($/mt)
This could likely be explained by a bullish price environment and USEC-Rotterdam CDBUR00 23.50 0.00
Mobile-Rotterdam CDMAR00 30.00 0.00
which would encourage producers to maximize export volume despite Roberts Bank-Japan CDRBK00 22.15 0.00
these constraints, as well as pressure from the ministry of Mineral Richards Bay-India West CSAKL00 23.35 0.00
Resources pressuring miners to fulfill their domestic market obligations. Penalties & Premia ($/mt)
Exports over January-September were at 236.1 million mt, up 4% Per 0.1% Sulfur (USGC) COPAP00 0.00 -0.16
from the year-ago period. Total S discount (USGC) COPBP00 0.00 -3.04

Of the total export volume in September, 24 million mt was sub- Netbacks ($/st)
FOB US East Coast* COUSC00 12,500 GAR 1.0% 109.37 -10.59
bituminous coal and 3.3 million mt was bituminous. FOB US Gulf Coast* COUGU00 11,500 GAR 2.9% 94.24 -6.95
Exports to China remained strong at 9 million mt, down 17% from FOB Vancouver* COVCU00 8,800 GAR 0.8% 86.13 0.00
August’s record high but up more than five times on the year-ago Netbacks ($/mt)
volume as coal demand was surging in China with insufficient FOB Richards Bay CSEUW00 6,000 NAR 0.8% 122.80 0.00
domestic supply during this time period. * CV = Btu/lb

Exports to India were 5.6 million mt, up 25% on the month and
down 44% on the year. Import demand from India remained subdued
due to high pricing, despite firm power demand. Domestic coal
production in India will likely be ramped up and utilized to subsidize
this import reluctance.
— Joseph Clarke

GLOBAL COAL PHYSICAL PRICE SNAPSHOT, NOVEMBER 15

$/mt, kcal/kg)

FOB Baltic Russia 6,000 NAR* 168.00

FOB Russia Pacific 140.00
CIF ARA 6,000 NAR 142.50
European Blended Price 6,000 NAR 137.00
FOB Baltimore 6,000 NAR 120.75
FOB Hampton Roads 6,000 NAR 128.00 CIF Med 75kt 6,000 NAR* 193.00
Platts NEAT 5,750 NAR 140.54
FOB New Orleans 6,000 NAR 110.00 CIF Med 45kt 6,000 NAR* 200.00
FOB Long Beach 6,000 NAR 115.90
CFR Pakistan 5,750 NAR 210.00 PCC 8 (CFR South China) 5,500 NAR 159.10
FOB Oakland 6,000 NAR 107.50
CFR India East 5,500 NAR 132.40
FOB Vancouver 5,000 NAR 68.85 CFR Bangladesh 5,000 GAR 126.90
CFR India West 5,500 NAR 130.75
CFR India East 4,200 GAR 96.35 Platts SEAT 4,200 GAR 93.50
CFR India West 4,200 GAR 97.70
FOB Colombia 6,000 NAR* 175.00
FOB Kalimantan 4,200 GAR 81.95

FOB Richards Bay 5,500 NAR 102.20 FOB Newcastle 5,500 NAR 110.80
FOB Richards Bay 6,000 NAR 122.80

* 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, NOVEMBER 15, 2021

SPOT DRY BULK FREIGHT ASSESSMENTS, NOV 15

PLATTS THERMAL COAL INDONESIA DAILY RATIONALE
Platts symbol $/mt Chg
S&P Global Platts assessed the 7-45 day price of FOB Kalimantan 4,200 kcal/kg Capesize
GAR coal at $79.95/mt on Nov. 15 down $2/mt from Nov. 12, amid weak demand Australia-China CDANC00 14.70 -0.30
fundamentals. Queensland-Japan CIGAJ00 16.30 -0.30
No trades were heard before the Platts Markets on Close process. New South Wales-Korea CINAK00 17.80 -0.30
The best offer was heard at $80/mt FOB on Supramax basis for December Bolivar-Rotterdam CIBCR00 16.25 0.00
loading and the best bid was heard at $65/mt FOB. Roberts Bank-Japan CDRKJ00 17.80 -0.30
An offer heard at $75/mt FOB on Supramax basis for November loading was
Panamax
excluded from assessment as it could not be confirmed before the Platts
Richards Bay-India West CSAKL00 23.35 0.00
Markets on Close assessment process.
Kalimantan-India West CSAKP00 13.70 -0.05
The above rationale applies to the FOB Kalimantan 4,200 GAR assessment, with
Richards Bay-India East CSAKN00 24.05 0.00
the associated code: CSBKI00.
Kalimantan-India East CSAKR00 11.60 -0.05
Ventspils-Rotterdam CILTN00 12.25 -0.50
USEC-India CDBUI00 61.75 0.00
USEC-Rotterdam CDBUR00 23.50 0.00
Oct thermal coal derivatives volume down 9% Mobile-Rotterdam CDMAR00 30.00 0.00

on month to 57.6 million mt: LEBA Roberts Bank-Japan

Australia-China
CDRBK00 22.15 0.00
CDBFA00 19.00 0.00

■■Jan-Oct volumes down 23% on year Australia-India CDBFAI0 21.30 0.00

■■CIF ARA accounts for 73% of all volume Supramax

Richards Bay-Port Qasim CRBPB00 21.25 0.00
South Kalimantan-Krishnapatnam CISKK00 16.35 0.00
The volume of thermal coal derivatives traded and cleared in October
totaled 57.6 million mt, down 9% month on month and 3% year on
year, the London Energy Brokers Association, which represents FCA THERMAL COAL IMPLIED FREIGHT TABLE, NOV 15
regulated wholesale market brokers in the over-the-counter and Basis 5,500 kcal/kg NAR
exchange-traded European energy markets, said Nov. 15. Origin/delivery hub NE Asia SE Asia NW Europe India Med South China
January-October volumes were 478.9 million mt, down 23% from FOB Newcastle (20% Ash) 23.64 15.01 10.20 21.60 66.12 48.00
FOB Kalimantan -9.09 -17.72 -22.53 -11.13 33.39 15.27
the year-ago period. The year-to-date total has been lower than 2020 FOB Colombia -25.98 -34.61 -39.42 -28.02 16.50 -1.62
for every month of 2021. FOB Russia Baltic -19.56 -28.19 -33.00 -21.60 22.92 4.80
European CIF ARA derivatives accounted for 73% of all traded FOB Russia Pacific 6.11 -2.52 -7.33 4.07 48.59 30.47
FOB Richards Bay 34.09 25.46 20.65 32.05 76.57 58.45
volume, with 42.2 million mt, down 15% on the month and 5% on FOB Baltimore 31.30 22.67 17.86 29.26 73.78 55.66
the year. FOB New Orleans 33.65 25.02 20.21 31.61 76.13 58.01
FOB Vancouver 58.70 50.07 45.26 56.66 101.18 83.06

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COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 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
15-Nov Offer CIF ARA 6000 NAR $131 50,000 January globalCOAL
15-Nov Offer CIF ARA 6000 NAR $126 50,000 January globalCOAL
15-Nov Offer FOB Richards Bay 6000 NAR $121 50,000 January globalCOAL
15-Nov Bid FOB Richards Bay 6000 NAR $123 50,000 January globalCOAL
15-Nov Bid FOB Richards Bay 6000 NAR $127 50,000 December globalCOAL
15-Nov Offer FOB Richards Bay 6000 NAR $131 50,000 December globalCOAL
15-Nov Offer CIF ARA 6000 NAR $140 50,000 December Braemar
15-Nov Bid CIF ARA 6000 NAR $132 50,000 December Braemar
15-Nov Trade CIF ARA 6000 NAR $132 50,000 December Braemar
15-Nov Indication FOB NOLA 6000 NAR $115 0 December Broker
15-Nov Indication FOB NOLA 6000 NAR $104.9 0 December Broker
15-Nov Indication FOB Baltimore 6900 NAR $128.8 0 December Broker
15-Nov Indication FOB Baltimore 6900 NAR $130 0 December Broker
15-Nov Indication FOB Kalimantan 4200 GAR $100 55,000 Dec Producer Supramax
15-Nov Indication FOB Kalimantan 4200 GAR $75-80 55,000 Dec Trader Supramax
15-Nov Indication FOB Kalimantan 5000 GAR $110 55,000 Dec Trader Supramax
15-Nov Indication FOB Kalimantan 6000 NAR $165 55000/75000 Nov Producer Geared vessel
15-Nov Indication FOB Kalimantan 5500 NAR $151 55000/75000 Nov Producer Geared vessel
15-Nov Indication FOB Kalimantan 4700 NAR $130 55000/75000 Nov Producer Geared vessel
15-Nov Indication FOB Kalimantan 4200 GAR $80 55000/75000 Nov Producer Geared vessel
15-Nov Indication FOB Kalimantan 4200 GAR $83 55000/75000 Nov Producer Geared vessel
15-Nov Indication FOB Kalimantan 4200 GAR $75-80 55000/75000 Nov Trader Geared vessel
15-Nov Indication FOB Newcastle 5500 NAR $103-105 55000/75000 Nov Trader Geared vessel
15-Nov Offer FOB Kalimantan 3800 GAR $66 55,000 Nov Trader Supramax
15-Nov Offer FOB Kalimantan 3800 GAR $70 55,000 Dec Trader Supramax
15-Nov Bid FOB Kalimantan 3800 GAR $61-62 55,000 Dec Trader Supramax
15-Nov Offer FOB Kalimantan 3800 NAR $75-80 55,000 Nov Trader Supramax
15-Nov Offer FOB Kalimantan 4200 GAR $80 55,000 Dec Trader Supramax
15-Nov Bid FOB Kalimantan 4200 GAR $65 55,000 Dec Trader Supramax
15-Nov Indication FOB Kalimantan 4200 GAR $75-80 55,000 Nov Trader Supramax
15-Nov Offer FOB Kalimantan 6000 NAR $140 55000/75000 Dec Trader Geared vessel
15-Nov Indication FOB Kalimantan 4100 GAR $100 55,000 Dec Producer Supramax
15-Nov Indication FOB Kalimantan 4200 GAR $94 55,000 Dec Producer Supramax
15-Nov Indication FOB Kalimantan 3800 GAR $50 55,000 Nov Trader Supramax
12-Nov Bid CIF ARA 6000 NAR $139 50,000 December Braemar
12-Nov Offer CIF ARA 6000 NAR $146 50,000 December Braemar
12-Nov Offer CIF ARA 6000 NAR $132 50,000 January globalCOAL
12-Nov Offer CIF ARA 6000 NAR $141 50,000 January globalCOAL
12-Nov Offer CIF ARA 6000 NAR $129 50,000 January globalCOAL
12-Nov Trade FOB Richards Bay 6000 NAR $128 50,000 January globalCOAL
12-Nov Offer FOB Richards Bay 6000 NAR $128 50,000 January globalCOAL
12-Nov Bid FOB Richards Bay 6000 NAR $126 50,000 January globalCOAL
12-Nov Bid FOB Richards Bay 6000 NAR $135 50,000 December globalCOAL
12-Nov Offer FOB Richards Bay 6000 NAR $139 50,000 December globalCOAL
12-Nov Indication FOB Colombia 6000 NAR $175 75,000 December Trader
12-Nov Indication FOB Baltimore 6900 NAR $130 0 December Trader
12-Nov Indication FOB Baltimore 6900 NAR $147.7 0 December Trader
12-Nov Indication FOB NOLA 6000 NAR $115 0 December Trader
12-Nov Indication FOB NOLA 6000 NAR $135.5 0 December Trader
12-Nov Offer FOB Kalimantan 5700 NAR $159 55000/75000 Nov Trader Geared vessel
12-Nov Offer FOB Kalimantan 4700 NAR $115 75,000 Nov Trader Panamax
12-Nov Offer FOB Kalimantan 4400 NAR $115 75,000 Dec Trader Panamax
12-Nov Offer CFR China 3800 NAR $115 55000/75000 Nov Trader Geared vessel
12-Nov Offer FOB Kalimantan 3800 NAR $91 55000/75000 Nov Trader Geared vessel
12-Nov Offer FOB Kalimantan 3800 NAR $85 55000/75000 Nov Trader Geared vessel
12-Nov Offer FOB Kalimantan 3800 NAR $82 55000/75000 Nov Trader Geared vessel

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 4
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

Australian FOB Newcastle volumes totaled 12.7 million mt, up 27% THERMAL COAL FORWARD CURVES, NOV 15
Bid Ask Midpoint* Platts symbol Change* % Change
on the month and 1% on the year.
South African FOB Richards Bay derivatives were 2.8 million mt, CIF ARA 6,000 NAR
Dec-21 124.85 125.15 125.00 CSAM001 +0.05 +0.04
down 27% on the month but up 21% on the year. Jan-22 120.60 120.90 120.75 CSAM002 0.00 0.00
— Sarah Matthews Q1-22 117.35 117.65 117.50 CSAQ001 +1.50 +1.29
Q2-22 106.85 107.15 107.00 CSAQ002 +3.00 +2.88
Q3-22 99.50 99.80 99.65 CSAQ003 +1.15 +1.17
Q4-22 94.70 95.00 94.85 CSAQ004 +1.35 +1.44
CHINA DATA: National carbon market price 2022 104.60 104.90 104.75 CSAY001 +1.75 +1.70

dips 0.1% on week to $6.66/mtCO2e 2023

2024
91.65 91.95 91.80
88.10 88.40 88.25
CSAY002 +0.80 +0.88
CSAY003 +0.80 +0.91
*Fields are calculated.
■■5-day trade volume rises 39% on week to 2,740,012 mtCO2e
■■Weekly trade volume seen rising steadily since October

The daily weighted average price of a Carbon Emission Allowance or

YEARAHEAD TTF vs DUTCH YA COAL SWITCHING PRICE
CEA under China’s national carbon market edged down 0.1% week on
week to Yuan 42.66/mtCO2e (approximately $6.66/mtCO2e) Nov. 12, (Eur/MWh)
70
while the weekly trade volume surged 39% over the same period to
2,740,012 mtCO2e, Shanghai Environment and Energy Exchange data 60

showed. 50
Weekly trade volumes in China’s national carbon market have Dutch TTF
40 CSP
posted steady week-on-week growth since October after most
companies were notified of their emission allowance quotas at the 30
end of September.
Nevertheless, the daily carbon price remains relatively low 20

compared with the CEA price at market launch on July 16 at Yuan 10

51.23/mtCO2e (approximately $8.00/mtCO2e). China’s emission Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21
allowance price was also significantly lower than that in other Efficiency used is 50% for gas plants and 40% for Dutch coal plants. Platts CSPI is the
compliance markets worldwide. 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.
In comparison, European emission allowances were priced at Source: S&P Global Platts
Eur63.34/mtCO2e (approximately $72.54/mtCO2e) Nov. 12, and
California carbon allowances were at $33/mtCO2e in the week to Nov.
11, according to S&P Global Platts assessments. In the Asia-Pacific GERMAN CLEAN DARK SPREADS vs CLEAN SPARK SPREADS
region, South Korea’s Emission Trading Scheme’s daily closing carbon (Eur/MWh)
price was Won 33,100/mtCO2e (approximately $28.07/mtCO2e) Nov. 12, 100
according to official exchange data.
The key reason behind China’s relatively low carbon price was the
CDS 45%
loose allocation method for emissions quotas. Current only the power 50
CSS 50%
generation sector is covered in the national emissions trading scheme, CSS 45%
and the emissions quota allocations for most power suppliers are more CDS 35%
than sufficient because the companies have already adopted modern 0
supercritical or ultra-supercritical coal-fired generation units.
The price and volume data are published by Shanghai Environment
and Energy Exchange, which hosts China’s online carbon trading platform. -50
MA MA +1 QA QA +1 YA
It does not provide information on bid, offers and counterparties.
Meanwhile, highlights in China’s energy transition and carbon Source: S&P Global Platts

market for the week ending Nov. 12 included –

■■The US and China plan to cooperate on reducing methane
emissions and China said it would launch a methane action plan
before COP27 as part of the US-China Joint Glasgow Declaration on POWER PRICE FUNDAMENTALS
Enhancing Climate Action in the 2020s released late Nov. 10 at the 15-Nov-21 Change
26th United Nations Climate Change Conference, or COP26. Brent oil (month ahead – $/b) AAYES00 81.360 -0.950
Coal CIF ARA (year ahead – $/mt) CSAY001 104.750 +1.750
■■The US-China declaration also outlined collaboration in areas like
EEX EUA carbon (front December – Eur/mt) EADLP00 66.350 +3.010
green technologies, the formulation of regulatory frameworks and UK NBP gas (month ahead – p/th) NGAAE00 206.200 +15.200
environmental standards, energy green design, decarbonization and Dutch TTF gas (year ahead – Eur/MWh) GTFTZ00 49.850 +1.900

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 5
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

the electrification of end-use sectors, renewables and technologies 5DAYAHEAD TEMPERATURE DEVIATION FORECAST
like carbon capture.
■■China’s national compliance carbon market could be rolled out in
the country’s refining and petrochemical sector as early as 2022-
2023, in a move that will introduce carbon pricing in one of the most
energy-intensive sectors. The earlier-than-expected rollout by the
environment ministry was mentioned by Zhang Gao, Vice President
of Carbon Emission Allowance Registration and Settlement
Company, at the 10th China International Oil and Gas Trade Congress
Nov. 8. The Wuhan, Hubei-based company currently hosts China’s
national carbon market’s registration and settlement systems.
■■China’s national carbon market had been operating for 69 trading
days and completed 2,004 transactions as of Oct. 31, with a total
trade volume of 20.20 million mtCO2e and trade value of Yuan 908
million ($142 million), Zhang said at the same event.
■■China’s hydrogen-powered Fuel Cell Electric Vehicles or FCEVs
are expected to be cost-competitive in 2030 compared with
conventional vehicles powered by gasoline or gasoil, in terms
of both the purchasing price and fuel costs, Jiang Ning, chief
specialist with Sinopec Marketing, said at the same event on Nov. 8.
“By 2025, when the green hydrogen [renewables-based hydrogen]
cost is expected to be lower than Yuan 30/kg [approximately $4.69/
kg] and the gasoil price around Yuan 6.7/liter [74 cents/liter before
taxes], hydrogen-powered trucks’ fuel cost will be competitive
Source: S&P Global Platts, Custom Weather
against gasoil-fueled ones,” Jiang said, sharing the results of the
company’s recent study.
— Ivy Yin
The decisions made at the COP26 summit in Glasgow provide the
tools needed for a robust, transparent and accountable carbon market,
COP26: Nations strike deal on international allowing governments to trade emissions reductions to provide flexibility
carbon markets at Glasgow summit in how they meet their national climate goals, according to EDF.
“The decision eliminates double counting for compliance markets
■■Countries nail down rules after six years of haggling and establishes a strong framework to ensure appropriate accounting
■■Agreement avoids double counting of emissions reductions for voluntary carbon markets that also supports emissions reductions
■■Article 6 deal set to boost confidence in emissions markets in countries hosting carbon market activities,” said Kizzier.

Negotiators from almost 200 governments have reached a final deal on CDM carryover
the rules governing the international trade of emissions reduction units Crucially, negotiators agreed to limit the use of pre-2020 credits
after six years of haggling that had held up the Paris Agreement rulebook. from the UN’s Clean Development Mechanism in the Paris architecture,
Representatives struck a final deal on Article 6 of the 2015 Paris avoiding a wholesale flooding of the market for carbon credits that
Agreement at the UN Climate Change Conference Nov. 13 as part of the could have sent their price plummeting.
Glasgow Climate Pact, in a move that is likely to unlock billions of The final text states that only CDM credits registered after Jan. 1,
dollars of investment in carbon reduction projects around the world. 2013 may be used for national targets under the Paris system.
“The agreed Article 6 rules give countries the tools they need for “The carryover of credits left over from the Clean Development
environmental integrity, to avoid double counting and ultimately to Mechanism is restricted to some 120 million mt and their use is
clear a path to get private capital flowing to developing countries,” said restricted to the first cycle of national commitments,” said Kizzier.
Kelley Kizzier, vice president for global climate at US-based non- CORSIA-eligible carbon credit (CEC) prices have increased by 944%
governmental group Environmental Defense Fund. this year and were assessed at $8.35/mt CO2e at the close Nov. 12,
“The carbon market rules allow countries to focus their efforts on according to S&P Global Platts assessments, compared with 80 cents/
ambitious implementation of their emissions-cutting targets,” she said mt when the assessment was launched Jan. 4.
in a statement Nov. 13. Meanwhile, nature-based credit (CNC) prices have increased by
Agreement on Article 6 was critical because it was holding back 181% this year and were pegged at $13.05/mt CO2e at the close Nov. 12,
agreement on the wider rulebook that sets out how the Paris according to Platts assessments, compared with $4.65/mt when they
Agreement will operate. were launched on June 14.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 6
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

PLATTS DAILY METALLURGICAL COAL ASSESSMENTS, NOV 15

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 373.00 -26.50 HCCGC00 392.00 -26.50 HCCGI00 394.30 -26.50
Premium Low Vol PLVHA00 372.00 -26.50 PLVHC00 502.00 -10.00 PLVHI00 393.30 -26.50
Low Vol HCC HCCAU00 307.75 -26.00 HCCCH00 426.00 -10.00 HCCIN00 329.05 -26.00
Low Vol PCI MCLVA00 230.00 -15.00 MCLVC00 233.50 -10.00 MCLVI00 251.30 -15.00
Mid Vol PCI MCLAA00 229.00 -15.00 MCLAC00 231.50 -10.00 MCVAI00 250.30 -15.00
Semi Soft MCSSA00 206.50 -20.00 MCSSC00 172.00 -10.00 MCSSI00 227.80 -20.00
Premium Low Vol China Netback PLVHD00 483.00 -10.00

TSI coking coal indices ($/mt)

TSI Premium Hard (PHCC) FOB Australia TS01034 372.00 -26.50

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 372.00 100.00% PLVHC00 502.00 100.00%
Peak Downs HCPDA00 373.00 100.27% MCBAA00 392.00 78.09%
Saraji HCSAA00 372.00 100.00% MCBAB00 391.00 77.89%
Oaky North HCOKA00 371.50 99.87% MCBAR00 390.50 77.79%
Illawarra HCIWA00 376.00 101.08% MCBAH00 386.00 76.89%
Moranbah North HCMOA00 376.00 101.08% MCBAG00 386.00 76.89%
Goonyella HCGOA00 376.00 101.08% MCBAE00 386.00 76.89%
Peak Downs North HCPNA00 375.00 100.81% MCBAJ00 385.00 76.69%
Goonyella C HCGNA00 375.00 100.81% MCBAI00 385.00 76.69%
Riverside HCRVA00 375.00 100.81% MCRVR00 385.00 76.69%
GLV HCHCA00 369.50 99.33% MCBAF00 383.50 76.39%
Low Vol HCC HCCCH00 426.00 84.86% 100.00%
Lake Vermont HCC MCBAN00 375.50 88.15%
Carborough Downs MCBAO00 373.50 87.68%
Middlemount Coking MCBAP00 365.50 85.80%
Poitrel Semi Hard MCBAQ00 362.50 85.09%
November 15 freight rates. Australia to China: Panamax = $19.00/mt Capesize = $14.70/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 385.00 -15.00 19.25% 8.25% 0.95%
High Vol A AAWWS00 385.00 -10.00 32.25% 7.5% 0.95%
High Vol B AAWWT00 320.00 0.00 36.00% 8.00% 1.00%
Premium Low Vol
$/mt Change VM Ash S
Premium Low Vol HCC CFR NWE PLVHE00 393.80 -26.50 21.50% 9.30% 0.50%
Premium Low Vol FOB Australia PLVHA00 372.00 -26.50 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 3590 PCCMB04 3625 PCCMC04 3910 PLVHJ04 497.04
PCC Met Shanxi High Sulfur Premium Low Vol PCCMD04 3200 PCCME04 3235 PCCMF04 3520 PLVHD04 455.77
PCC Met North China Fat Coal PCCMG04 3200 PCCDG04 413.42
PCC Met Shanxi PCI PCCMH04 2200 PCCMI04 2235 PCCMJ04 2445 MCLCC04 313.51
PCC Met Shandong Semi Soft PCCMK04 2100 PCCML04 2120 MCSSD04 265.16

PCC Met Rail Freight Shanxi – Tangshan PCCMM04 200

PCC Met Truck Freight Shanxi – Tangshan PCCMO04 320
*Weekly (assessed November 10).

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 4020.00 AAWZO00 535.10
Low Vol HCC* AAWZP00 3480.00 AAWZQ00 462.68
*Weekly (assessed November 12), 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, NOVEMBER 15, 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 0.93
Per 1% TM (as received) 8-11% CPTPA00 -1.00% CPTMP00 -3.72
Per 1% Ash (air dried) 7-10.5% CPAPA00 -0.25% CPPAP00 -0.93
Per 0.1%S (air dried) 0.3-1% CPSPA00 -0.25% CPSPV00 -0.93

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 0.20% CPPBB00 0.77
40-49% CPPBC00 0.20% CPPBD00 0.77
Per 0.1% S 0.70-1.05% CPPBE00 0.85% CPPBF00 3.27
1.06-1.25% CPPBG00 1.60% CPPBH00 6.16
Per 1% TM (as received) 6-11% CPPBK00 1.00% CPPBL00 3.85
Per 1% Ash 5-10% CPPBI00 1.50% CPPBJ00 5.78

US weekly brand relativities ($/mt), November 12

Platts FOB Spread vs US LV
symbol
Blue Creek No. 7 MCAPB04 450.00
Blue Creek No. 4 MCAPC04 420.00
Beckley MCAPD04 405.00 101.25%
Low Vol FOB USEC AAWWR00 400.00 100.00%
Windber MCAPE04 397.25 99.31%
Buchanan MCAPF04 404.50 101.13%
November 12 Panamax freight rates. Hampton Roads to Rotterdam = $23.50/mt, Hampton Roads to Brazil = $25.25/mt, Mobile to Rotterdam = $30.00/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, NOV 15 METALLURGICAL COKE, NOV 15

Platts symbol $/mt Chg % Chg Seaborne
TSI Premium Hard Coking Coal Australia Export FOB East Coast Port % CSR Platts symbol $/mt Chg % Chg
Dec-21 MCPLM01 334.250 -0.750 -0.224 FOB North China 66/65 MCCNC00 657.00 -10.00 -1.50
Jan-22 MCPLM02 301.750 -1.750 -0.577 65/63 MCCHB00 619.00 -13.00 -2.06
Feb-22 MCPLM03 275.750 -1.750 -0.631 64/62 AAWVL00 605.00 -13.00 -2.10
Q1-22 MCPLQ01 276.000 -1.500 -0.541 62/60 MCCHA00 600.00 -13.00 -2.12
Q2-22 MCPLQ02 223.500 -1.250 -0.556 CFR India 66/65 MCCNI00 663.00 -15.00 -2.21
Q3-22 MCPLQ03 196.500 -1.500 -0.758 65/63 MCINB00 642.00 -15.00 -2.28
2022 MCPLY01 218.750 -1.500 -0.681 64/62 MCCEI00 631.00 -15.00 -2.32
2023 MCPLY02 184.250 -1.000 -0.540 62/60 MCINA00 626.00 -15.00 -2.34
Domestic
PLATTS CHINA PLV, MET COKE PRICE DIFFERENTIALS, NOV 15 Yuan/mt
Price spreads Platts symbol $/mt DDP North China (weekly) 62 AAWVJ00 3710.00 -400.00 -9.73

Import-Shanxi Premium Low Vol CFR China PLVHK04 42.96 $/mt

Import-port stock Premium Low Vol CFR China PLVHL04 -23.10 FOB North China equivalent (DDP weekly) 62 PLVHM04 585.13 -62.58 -10.70
62% CSR coke export-domestic FOB North China PLVHN04 27.87

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 8
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

HYDROGEN & CARBON

NORTH AMERICA HYDROGEN ASSESSMENTS, NOVEMBER 12* VOLUNTARY CARBON CREDITS, NOVEMBER 15
Excluding Capex Including Capex $/mtCO2e Change Eur/mtCO2e Change
Production Pathway $/kg Change $/kg Change Platts CEC 8.550 +0.200 7.467 +0.174
Alberta (C$/kg) 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.
SMR w/o CCS 0.7600 +0.0554 1.4883 +0.0619
Alkaline Electrolysis 5.0183 +1.4867 6.2211 +1.4976
PEM Electrolysis 5.7970 +1.7175 7.9519 +1.7368
UK HYDROGEN ASSESSMENTS, NOVEMBER 15
Appalachia
Production Pathway GBP/kg Change GBP/KWh Change
SMR w/o CCS 0.6959 +0.0716 1.2912 +0.0716
ATR w CCS 4.2484 +0.3112 0.1275 +0.0094
Alkaline Electrolysis 2.6991 +0.0101 3.5784 +0.0100
ATR w CCS (inc. Capex & Carbon) 4.5676 +0.3112 0.1370 +0.0093
PEM Electrolysis 3.1178 +0.0116 4.6934 +0.0117
Alkaline Electrolysis 11.2103 +0.8407 0.3363 +0.0252
Gulf Coast Alkaline Electrolysis (inc. Capex) 11.8298 +0.8397 0.3549 +0.0252
SMR w/o CCS 0.7343 +0.0018 1.2384 +0.0019 PEM Electrolysis 12.9471 +0.9711 0.3885 +0.0292
Alkaline Electrolysis 2.0423 -0.1608 2.8747 -0.1608 PEM Electrolysis (inc. Capex) 14.0572 +0.9694 0.4218 +0.0291
PEM Electrolysis 2.3592 -0.1857 3.8506 -0.1857
Midcontinent
SMR w/o CCS 0.6933 +0.0006 1.2246 +0.0006 NETHERLANDS HYDROGEN ASSESSMENTS, NOVEMBER 15
Alkaline Electrolysis 1.5000 +0.1555 2.3539 +0.1556
PEM Electrolysis 1.7328 +0.1797 3.2626 +0.1797 Production Pathway Eur/kg Change Eur/KWh Change
SMR w/o CCS 3.6808 +0.2690 0.1104 +0.0080
Northeast
SMR w/o CCS (inc. Capex) 4.1220 +0.2700 0.1237 +0.0081
SMR w/o CCS 0.7569 +0.0944 1.3916 +0.0944 SMR w/o CCS (inc. Carbon) 4.2713 +0.2958 0.1282 +0.0089
Alkaline Electrolysis 2.2498 -0.1158 3.1544 -0.1158
SMR w/o CCS (inc. Capex & Carbon) 4.7125 +0.2967 0.1414 +0.0089
PEM Electrolysis 2.5988 -0.1339 4.2196 -0.1338
SMR w CCS 4.5949 +0.3238 0.1379 +0.0098
Northern California SMR w CCS (inc. Capex) 5.3094 +0.3254 0.1593 +0.0098
SMR w/o CCS 0.8938 -0.0251 1.6241 -0.0251 SMR w CCS (inc. Carbon) 4.6540 +0.3265 0.1396 +0.0098
Alkaline Electrolysis 2.8669 -0.0990 3.8531 -0.0990 SMR w CCS (inc. Capex & Carbon) 5.3684 +0.3280 0.1611 +0.0099
PEM Electrolysis 3.3117 -0.1143 5.0787 -0.1144 Alkaline Electrolysis 10.1491 +0.5109 0.3045 +0.0153
Northwest Alkaline Electrolysis (inc. Capex) 10.8778 +0.5125 0.3264 +0.0154
SMR w/o CCS 0.6449 -0.0965 1.2275 -0.0965 PEM Electrolysis 11.7211 +0.5901 0.3517 +0.0177
Alkaline Electrolysis 1.7458 -0.5507 2.6419 -0.5507 PEM Electrolysis (inc. Capex) 13.0267 +0.5931 0.3908 +0.0178
PEM Electrolysis 2.0166 -0.6362 3.6222 -0.6362
Rockies
SMR w/o CCS 0.6987 -0.0204 1.2569 -0.0203 NETHERLANDS HYDROGEN INCLUDING CAPEX
Alkaline Electrolysis 1.7746 -0.8291 2.6412 -0.8291
(Eur/kg)
PEM Electrolysis 2.0500 -0.9577 3.6026 -0.9577
25
Southeast
SMR w/o CCS 0.7848 +0.0528 1.3045 +0.0528 PEM
Alkaline Electrolysis 2.4296 +0.2985 3.2843 +0.2985 20 Electrolysis
PEM Electrolysis 2.8066 +0.3448 4.3378 +0.3448 Alkaline
Southern California 15 Electrolysis
SMR w/o CCS 0.7984 -0.1321 1.4992 -0.1321
SMR w CCS
Alkaline Electrolysis 3.1562 +0.0213 4.1221 +0.0213 10 (inc. carbon)
PEM Electrolysis 3.6460 +0.0248 5.3766 +0.0247
month ahead
Upper Midwest
5 SMR w/o CCS
SMR w/o CCS 0.7361 -0.0057 1.3045 -0.0057
(inc. carbon)
Alkaline Electrolysis 2.5560 -0.2998 3.4623 -0.2998
month ahead
PEM Electrolysis 2.9525 -0.3464 4.5764 -0.3464 0
05-Oct 11-Oct 15-Oct 21-Oct 27-Oct 02-Nov 08-Nov 12-Nov
*Assessed previous day
Source: S&P Global Platts
JAPAN HYDROGEN ASSESSMENTS, NOVEMBER 15
Excluding Capex Including Capex CALIFORNIA ELECTROLYSIS INCLUDING CAPEX
Production Pathway Yen/kg Change Yen/kg Change ($/kg)
SMR w/o CCS 564.2392 +15.2530 650.3481 +15.1321 7
Alkaline Electrolysis 941.2330 +1.9899 1083.4334 +1.7901
PEM Electrolysis 1087.2811 +2.2986 1342.0621 +1.9407
N. Calif.
6 PEM
S. Calif.
ASSESSMENT RATIONALE 5 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 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
05-Oct 11-Oct 15-Oct 21-Oct 27-Oct 02-Nov 08-Nov 12-Nov
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, NOVEMBER 15, 2021

Corresponding adjustments work by cancelling units from an emissions registry and ensuring they
The final Article 6 rules allow a country hosting an emissions could not be transferred or used for any purpose.
reduction project to decide if the reductions will be counted towards Recent increases in climate ambition from governments have
its own target or sold elsewhere for other purposes, and the country supported carbon prices worldwide.
must notify a UN supervisory board accordingly. “In the lead-up to COP26, carbon markets surged in many
The Article 6.4 text states that voluntary emissions reductions may jurisdictions, as businesses contemplated the enhanced ambitions of
only be used towards a country’s Nationally Determined Contribution if many countries,” IETA said.
they are authorized by the UN, and the host country must apply a “This included growth in every carbon market in 2021, with a near
corresponding adjustment for any units sold abroad. This measure doubling of voluntary market transactions and the launch of China’s
avoids one emissions reduction being counted by two countries. national ETS. Markets in Europe, California, Quebec, New Zealand,
Other observers said the final deal on Article 6 clears the way for Australia and RGGI have seen record prices in the past month,” the
an expansion of emissions trading under the Paris Agreement. group said.
“The guidance for Article 6 sets up a new structure for carbon — Frank Watson
markets to work in the service of the Paris Agreement goals,” the
International Emissions Trading Association said in a statement Nov. 13.
“The decisions provide clear accounting guidance for emissions COP26: Nations strike deal in Glasgow after
trades between countries and launch a new crediting mechanism that late watering-down of coal phase-out clause
will give market access to all countries interested in attracting green
investment through the global carbon market,” IETA said. ■■India initiates late change to ‘phase-down’ coal
“This is a solid and ambitious outcome, because it establishes an ■■Developing countries ‘entitled to fossil fuel use’
integrity framework to support the expansion of carbon markets to ■■Rules on carbon markets, common timeframes adopted
help governments and businesses deliver higher climate ambitions,”
said IETA CEO Dirk Forrister. A final deal was approved at the UN’s Climate Conference in Glasgow
Nov. 13 after a late objection by India on the phase out of coal-fired
power was reluctantly accepted.
The final text now calls on countries to accelerate the “phase-
down” of unabated coal-fired power rather than its “phase-out” after
both India and China lobbied for the change. Coal makes up 65% of
China’s and 71% of India’s power generation mix.
“Developing countries have a right to their fair share of the global
carbon budget and are entitled to the responsible use of fossil fuels,”
Indian Environment Minister Bhupender Yadav told the conference in a
late intervention.
“How can anyone expect developing countries to make promises
about phasing out coal and subsidies for fossil fuels when those
countries have still to deal with their development agendas?” the
minister asked.
India’s policy, for instance, included “much-needed” subsidies for
Share of Proceeds liquid petroleum gas use in low-income households, reducing the
The final Article 6 text also included agreement on the so-called dangerous use of biomass burning for cooking, Yadav said.
Share of Proceeds – a fixed tariff on emissions trading that aims to
generate funding for climate adaptation in developing countries. Decisions on mitigation
Negotiators agreed this will be set at 5% of all emissions In other significant commitments, the final text of the Glasgow
reductions created under Article 6.4 of the Paris Agreement, levied at Climate Pact confirmed a call for the accelerated phase-out “of
the point of issuance. inefficient fossil fuel subsidies”.
However, in order to find overall agreement, negotiators had to On carbon abatement efforts, meanwhile, parties to the deal
reach a compromise in which the share of proceeds would only apply decided to establish a work program “to urgently scale up mitigation
to the trade of voluntary emissions credits, but not on national ambition and implementation in this critical decade.”
transfers under Article 6.2. They also decided to convene “an annual high-level ministerial
“Instead, countries using Article 6.2 are encouraged to contribute round table on pre-2030 ambition,” beginning next year.
to the Adaptation Fund,” IETA said. On finance, the text noted “with deep regret that the goal of
The rules also included a measure that would cancel 2% of all developed country Parties to mobilize jointly $100 billion per year by
emissions reduction units generated under Article 6.4 – a move that 2020 in the context of meaningful mitigation actions and transparency
aims to ensure an overall mitigation in global emissions. This would on implementation has not yet been met.”

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 10
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

The latest assessment by the UN is that the Paris Agreement’s $100 Loadings in the latest week were 11.1% higher than the year-ago week.
billion finance pledge may only be met in 2023. The funding, to help Northern Appalachia loadings rose by 11.1% from the previous
emerging and developing nations combat climate change, was pledged week, the most significant week-on-week margin nationwide. NAPP
each year between 2020 and 2025. The amount is to increase thereafter. loadings averaged 9.2 trains/d, down 6.7% from the year-ago week.
Other than NAPP, the Powder River Basin was the only major coal-
Weak pulse producing region to increase loadings on the week. PRB averaged
Formally gaveling through the Glasgow Climate Pact, COP26 47.5 trains/d, up 7.2% from the previous week and 26.3% from the
President Alok Sharma said he understood the “deep disappointment” year-ago week.
of most countries at the climb-down on coal, but this was “vital” to
protect the overall package.
This included a request for all countries “to revisit and strengthen the
2030 targets in their nationally determined contributions as necessary to
align with the Paris Agreement temperature goal by the end of 2022.”
The need to return almost immediately to the table underlined the
fact that the Glasgow package was just work-in-progress with much
more needed to be done, Sharma said.
“I believe 1.5 degrees remains in reach but its pulse is weak and it
will only survive if we keep our promises, translate commitments into
rapid action and close the vast gap that remains,” he said.

Paris Rulebook approved

Also approved at the COP26 talks were key rules on global carbon
markets, on common timeframes and on transparency. The remaining US coal basins decreased coal train loadings from
“These put in place the rules and systems to keep us accountable the previous week, with non-primary basins losing the most significant
and support increased ambition. Their resolution will unleash the full percentage of loadings nationwide. Non-primary loadings fell 8.2% from
force of what was agreed in Paris,” Sharma said. the previous week to 5.6 trains/d, down 17.6% from the year-ago week.
While final texts were still to be published, final drafts showed the It was a five-week low for coal train loadings in non-primary basins.
use of Clean Development Mechanism credits (CERs) would be limited to Illinois Basin coal loadings dropped 2.6% on the week to 3.3
those issued from 2013 onwards, with a mandatory use of 5% of carbon trains/d, down 33.9% from the year-ago week. Central Appalachia coal
credit proceeds for adaptation purposes in developing countries. train loadings dropped 1.3% on the week to 12 trains/d, a 12-week low.
“The current deal limits the carry over of CDM to credits from the CAPP loadings were 13.3% higher than the year-ago week.
second commitment period of the Kyoto Protocol and limits their use to
the first NDC cycle,” said Kelley Kizzier, vice president for global climate
at US-based non-governmental group Environmental Defense Fund.
The end result was about 100 million credits carried over, Kizzier
told S&P Global Platts – “not an ideal result, but not the worst trade off
to get robust international accounting rules in place.”
Final texts also included a package preventing all forms of double
counting of carbon credits for compliance markets, Kizzier said.
CORSIA-eligible carbon credit (CEC) prices have increased by 944%
this year and were assessed at $8.35/mt CO2e at the close Nov. 12,
according to S&P Global Platts assessments, compared with 80 cents/
mt when the assessment was launched Jan. 4.
— Henry Edwardes-Evans

— Morgan Snook
US coal train loadings rise 4.5% on week: STB
■■Total nationwide loadings at six-week high Podcasts USKeeping
oncoal
you up to speed
production
the big-picture trendsdrops
■■NAPP coal trains increase by highest margin in country
0.1% on week:
affecting EIAcommodities
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Average daily US coal train loadings rose 4.5% on the week to 77.6 ■■IB output falls by most significant margin nationwide
Click here for more!
trains/d in the week ended Nov. 5, according to Nov. 12 Surface ■■CAPP production decreases 2.5% from previous week
Transportation Board data.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 11
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

Weekly US coal production fell 0.1% from the previous week to 11.56 Underground mine production as at 18.67 million mt in Q3,
million st in the week ended Nov. 6, according to Energy Information compared with 20.39 million in Q2 and 22.01 million st in Q1. In the
Administration data released Nov. 12. year-ago quarter, underground production totaled 17.67 million st.
On an annualized basis, US coal production totaled 591.79 million st,
according to EIA data.
The Powder River Basin was the only major coal-producing region
to increase tonnage from the previous week. PRB production was at
5.17 million st, up 1.8% from the previous week and 10.7% higher than
the year-ago week. Year-to-date PRB production was 221.53 million st,
up 6.7% from the same period in 2020.
Northern Appalachia coal production was flat on the week at 1.95
million st, and up 26.6% from the year-ago week. Year to date, NAPP
coal production totaled 80.39 million st, up 26.5% from the 2020 period.

Consol Energy’s Bailey mine in Greene County, Pennsylvania,

overtook American Consolidated Natural Resources’ Marshall County
mine as the largest mine in the region in the third quarter. Consol’s
Bailey Mine produced 2.28 million st in Q3, down 24.6% from the
previous quarter but 26% higher than Q3 2020.
After Consol’s Bailey Mine, ACNR’s Marshall County mine in West
Virginia produced the most tonnage in the region at 2.24 million st,
down 30.5% from the previous quarter and 15.3% from the year-ago
quarter.

Illinois Basin coal production fell by the most significant week-on-

week margin nationwide. IB production totaled 1.54 million st, down
4.3% on the week but 23.4% higher than the year-ago week. Year-to-
date IB production was 65.97 million st, up 14.4% from the same period
in 2020.
Central Appalachia coal production fell 2.5% on the week to 1.23
million st, up 13.2% on the year. Year-to-date CAPP production was up
5.7% from the year-ago period at 54.91 million st.
— Morgan Snook

Northern Appalachia Q3 production falls 10%

on quarter: MSHA
■■Top-producing Q3 mine drops 24.6% from previous quarter Rounding out the top three was Alliance Resource Partners’ Tunney
■■Consol bumps American Consolidated Natural Resources Ridge mine, which produced 1.88 million st, up 19.6% on the quarter
as top producer and 37.7% on the year.
ACNR remained the largest NAPP coal producer despite one of its
Northern Appalachia coal production in the third quarter fell to 21.02 larger mines closing in the third quarter. ACNR’s Monongalia mine,
million st, down 10% from Q2, but 6.3% higher than the year-ago which produced 1.2 million st in the previous quarter, was idled before
quarter, data from the US Mines Safety and Health Administration producing 149,733 st in the third quarter. In Q3,
showed Nov. 12. ACNR produced a total 7.11 million st, with three of its four top-
About 96.3% of the production, or 20.26 million st, was bituminous producing mines posting quarter-on-quarter gains.
coal, while the remaining 759,234 was anthracite. In the previous After ACNR, Consol was the top NAPP producer in the third
quarter, bituminous coal made up 98.1% of the production, or 22.84 quarter. Consol produced 5.29 million st in Q3, compared with 5.91
million st, while the remaining 453,461 st was anthracite. million st in Q2.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 12
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

Alliance rounded out the top three NAPP coal producers at 2.22 PLATTS HARD COKING COAL PREMIUM LOW VOL FOB
million st, up from 1.98 million st in the previous quarter. AUSTRALIA DAILY RATIONALE
— Morgan Snook
S&P Global Platts assessed Premium Low-Vol HCC down $26.50/mt to $372/mt
FOB Australia Nov. 15.
A trade was concluded Nov 15 at $375/mt FOB Australia for 35,000 mt of an
Met coal PLV FOB falls sharply on weaker Australian premium mid vol Riverside, with a Dec. 1-10 laycan. This was for a
coal assessed at a $3/mt premium to Platts PLV FOB Australia. The highest bid
demand was indicated at $370/mt FOB Australia for an Australian premium mid vol
Goonyella, assessed at a $4/mt premium to Platts PLV FOB Australia. An offer
Asia-Pacific metallurgical coal prices continued to fall across the board was indicated at $401/mt FOB Australia for the same coal. In addition, market
Nov. 15, with both PLV FOB Australia and CFR China declining over participants placed tradable levels between $370/mt and $400/mt FOB
market concerns of weaker demand. Australia for Australian premium mid vol Goonyella and Riverside, assessed at a
$4/mt and $3/mt premium, respectively, to Platts PLV FOB Australia. No data
S&P Global Platts assessed premium low vol down $26.50/mt at was excluded from this assessment.
$372.00/mt FOB Australia, and CFR China down $10/mt at $502/mt The above rationale applies to Platts Premium Low Vol FOB Australia
Nov. 15. assessment (PLVHA00) & TSI Premium Hard Coking Coal Australia Export FOB
In the PHCC FOB Australia market, Indian steelmaker Tata Steel East Coast Port (TS01034)
reported a transaction for 35,000 mt of Australian premium mid-vol
Riverside with a Dec. 1-10 laycan at $375/mt FOB Australia Nov. 15. PLATTS HARD COKING COAL PREMIUM LOW VOL CFR CHINA
The $100/mt fall on the week in PLV CFR China last week mounted DAILY RATIONALE
downward pressure on the FOB Australia market, sources told Platts. S&P Global Platts assessed Premium Low-Vol HCC down $10/mt to $502/mt
Aside from the trade, the highest bid was indicated at $370/mt FOB CFR China Nov. 15.
Australia for Australian premium mid vol Goonyella while an offer was The highest bid was indicated at $500/mt CFR China for US low vol Blue Creek
No.7. This was for a coal assessed at a $2/mt discount to PLV CFR China.
indicated at $401/mt FOB Australia for the same grade of coal.
Tradeable values were placed between $500-$510/mt CFR China for the same
Market participants also placed tradable levels between $370/mt type of coal. No data was excluded from this assessment.
and $400/mt FOB Australia for Australian premium mid vol Goonyella The above rationale applies to Platts premium low vol CFR China assessment
and Riverside. (PLVHC00) & TSI Prem JM25 CFR Jingtang (TS01044)
“The demand has weakened to the extent that it seems to have
overweighed a still-tight supply in the near term,” an Indian end-user said.
In China, prices continued to slide across the ferrous market, from
HYDROGEN
steel to coke and domestic coal. A major steel mill said that with the
current profit margin sitting in negative territory, some mills were H2 Green to develop hydrogen and ammonia
already cutting production to minimize their output and loss. hub in Shoreham, UK, to decarbonize port
Chinese steel mill margins are estimated at around -$11/mt and
-$8.63/mt for rebar and HRC, respectively, as of Nov. 15, according to ■■Potential to fuel 800 trucks per day
Platts data. ■■20-MW of hydrogen capacity once at scale
“It is a challenging time when the steel prices are so weak and the ■■Eyes ammonia import facility
winter heating season cut also commences through mid of March,
which won’t help the raw material demand during the period,” said a H2 Green is to develop a renewable energy hub at the port of Shoreham
domestic Chinese trader. on the south coast of the UK, including hydrogen and ammonia
Offers for spot US low vol coking coals on CFR China basis were production and new onshore wind and solar generation to decarbonize
reportedly withdrawn while indicative bids ranged from $400-$500/mt port operations, parent company Getech said in a statement Nov. 15.
CFR China. The project will initially provide renewable hydrogen and electricity
A Southern Chinese end-user said that the negative steel margin to the port’s 39 heavy forklift trucks and 12 heavy trucks, with potential
gave no incentive to steel mills to improve their production to optimal to expand supplies beyond the port.
levels, which would cause the demand for coking coals to continue In a second phase, the project could decarbonize the 800 trucks
weakening. a day that pass through the port, and could fuel port and coastal
In China’s coke market, the fourth round of price cut by Yuan 200/mt marine craft.
was concluded and the fifth round of price cut by Yuan 200/mt was H2 Green plans to develop an ammonia import facility in a third phase.
proposed by a steel mill in Hebei, citing negative steel margins and a “By bringing together the building blocks of green hydrogen
weakening domestic coking coal market. If concluded, this would bring production, renewable power investment, ammonia import, and
the cumulative amount to Yuan 1,000/mt. mobilizing a wide range of stakeholders, H2 Green will provide the
“Coking margins are currently in the red and we would expect most flexible, reliable, and cost-effective green energy solution for the
pressures to remain through mid of December,” added a coke producer Port, its customers and the wider region,” Getech CEO Jonathan Copus
based in Hebei. said in the statement.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 13
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

The company expects hydrogen production to expand to around 8 autothermal reforming was less than half the price GBP4.26/kg
mt/day over a period of five to seven years, with first production (including capex, CCS and carbon).
expected in late 2023 or early 2024, H2 Green told S&P Global Platts in — James Burgess
an email Nov. 15.
Hydrogen will be produced by a 20-MW electrolyzer once at full Lackluster buying interest for Asian thermal
scale, powered by renewable energy. coal even as prices cool ...from page 1
The hydrogen production facility will be optimized with new solar
and onshore wind facilities. Producers, however, were of the view that upcoming winter
Production could further expand to over 15 mt/day, once all heavy heating demand will support prices going forward and hence were in
vehicles in the port are converted to run on hydrogen, H2 Green said. no hurry to sell the few remaining cargoes.
A final investment decision is expected in the second half of 2022. Traders believe that buyers are waiting for prices to correct further
H2 Green has a two-year exclusive agreement with the port to before concluding deals.
develop the hub. The parties will now carry out detailed planning and “There is demand [from China] and buyers are bargaining,” another
scheduling for each element of the proposed facility. Shoreham Port Singapore-based trader said.
Authority has committed to convert all suitable vehicles to run on Deals were also being renegotiated, market sources said. In
hydrogen or electricity, Getech said. addition, laycans were being postponed for Chinese buyers, while
H2 Green said the project would remove around 45,000 mt/year of heavy rains in Kalimantan affected output.
CO2 emissions from the port’s fleet of trucks, and could catalyze the China’s seaborne demand remained firm with coal-fired utilities
decarbonization of the wider region. issuing tenders to procure prompt loading cargoes.
The company sees the potential demand for renewable hydrogen, Offers for Qinhuangdao 5,500 kcal/kg NAR were heard at Yuan
power and by-products such as oxygen and heat from nearby 1,150/mt FOB [$180.21/mt], while that of 5,000 kcal/kg NAR was heard
industries, including gas-fired power generation, timber and steel at Yuan 1,000/mt FOB [$156.71/mt], sources said Nov. 15.
handling, and water treatment projects. Qinhuangdao port stock inventories increased by 10,000 mt day on
day to 5.66 million mt on Nov.12. As many as 55 vessels were in queue,
Scalable model while 14 ships are expected, sources said.
Getech said the model of integrating a decarbonized port and
industrial cluster could be scaled and replicated across the country India’s buying sentiment
and internationally. Indian buyers were on the sidelines as they continued to assess
H2 Green plans to develop a network of localized hydrogen supply, the market in anticipation of further correction in seaborne coal prices,
storage and distribution hubs in the UK, the first of its kind in the country. sources said.
The company has an exclusive option to redevelop redundant In absence of purchases from Chinese buyers, Indian buyers may
gas infrastructure assets owned by SGN Commercial Services in wait for prices to fall further before buying coal, the sources said.
Scotland and southern England for hydrogen distribution around the Indian end-users have been relying on domestic coal production by
UK, H2 Green managing director Luke Johnson told Platts in an state-owned Coal India. An increase in the company’s production and a
interview in May. rise in dispatch rate has allowed thermal power plants to ride out the
Getech is a geoscience and geospatial technology company coal shortage, sources said.
focused on energy transition projects, and bought H2 Green in March. “We get low market activity on Mondays and people will try and bid
Calculated costs for green hydrogen production are currently at low levels and if someone is desperate, they will hit the bid,
above those for blue hydrogen produced from fossil fuels with carbon otherwise activity should remain lulled till Wednesday [Nov. 17],” an
capture and storage. But costs are expected to fall dramatically this Indonesia-based trader said.
decade. Indians may be interested in purchasing low-CV Indonesian coal
Platts assessed the cost of producing hydrogen via alkaline and Australian coal soon, market sources said. Indian buyers will be
electrolysis in the UK (including capex) at GBP10.99/kg ($14.75/kg) Nov. interested if they can get the 5,500 kcal/kg NAR Australian coal below
12, based on month-ahead power prices. PEM electrolysis production $130/mt CFR India.
was assessed at GBP13.09/kg, while blue hydrogen production by — Rituparna Nath, Suyash Pande

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 14
COAL TRADER INTERNATIONAL MONDAY, NOVEMBER 15, 2021

SUBSCRIBER NOTES
Platts to discontinue FOB Richards Bay 6,000 kcal/kg NAR thermal coal Please send all comments or questions to coal@spglobal.com and
netback Jan. 5 pricegroup@spglobal.com
S&P Global Platts has decided to discontinue the daily FOB Richards Bay 6,000 For written comments, please provide a clear indication if comments are not
kcal/kg NAR netback thermal coal calculation, effective Jan. 5, 2022. intended for publication by Platts for public viewing.
Platts has observed a shift towards thermal coals with lower calorific values, Platts will consider all comments received and will make comments not marked
with the 6,000 kcal/kg NAR coal of South African origin no longer commonly as confidential available to the public upon request.
traded in the region.
US Thanksgiving holiday publishing schedule for US thermal coal
Platts opened a formal proposal on Sept. 22 in a subscriber note available here:
S&P Global Platts offices in the US are closed Thursday, Nov. 25 and Friday, Nov.
https://www.spglobal.com/platts/en/our-methodology/subscriber-
26, in observance of the Thanksgiving holiday and there will not be any thermal
notes/092221-platts-proposes-to-discontinue-fob-richards-bay-6000-kcalkg-
coal assessments or Platts Coal Trader published on these days
nar-thermal-coal-netback-on-dec-17-2021
Platts Coal Trader will resume publishing on Monday, Nov. 29.
The FOB Richards Bay 6,000 kcal/kg NAR 7-45 Day price is published on the
For full details of Platts publishing schedule and services affected, refer to
fixed page 230 of the Platts real-time alert, in the Coal Trader, Power in Europe
http://www.platts.com/HolidayHome. For inquiries, please contact
publications, and in the Platts price database under the code CSEUW00.
support@platts.com.

© 2021 S&P Global Platts, a division of S&P Global Inc. All rights reserved. 15