Argus Coal Transportation North American Transportation News and Analysis

Argus Coal Transportation North American transportation news and analysis

Issue 20-49 Tuesday 8 December 2020

Market Summary Key Prices

Colorado rail rates rise Delivered coal price comparison Rail rates from Colorado origins rose this month as coal avail- $/t ± $/mmBtu ± ability tightened, while rates from the Powder River basin Powder River basin (PRB) remained unchanged. fob mine/rail 8,800 0.8 11.60 0.00 0.66 0.00 Colorado coal production has increased since May after to Ercot 43.88 0.00 2.49 0.00 to TVA 4 4.13 0.00 2.51 0.00 output slipped because of the effects of the Covid-19 pan- Illinois basin demic, according to US Energy Information Administration (EIA) Illinois/Indiana mine 11,500 5.0 29.00 0.00 1.26 0.00 data. But production fell in the back half of November after to Florida 65.80 0.00 2.86 0.00 rising slowly since late October. Pittsburgh seam Export conditions for western coal have been shifting in fob mine 13,000 4.5 37.4 0 +0.50 1.44 +0.02 producers’ favor, affecting supply. Prompt two-month ship- to New York 60.70 +0.50 2.33 +0.02 ments of 6,000 kcal/kg coal out of Australia — a benchmark for Central Appalachia rail Big Sandy/CSX rail 12,500 1.6 50.70 0.00 2.03 0.00 western bituminous exports — rose by $5.22/metric tonne last to Carolinas 80.92 0.00 3.24 0.00 week to $70.33/t fob Newcastle on domestic coal shortages in Central Appalachia barge China. Nymex-spec barge 12,000 1% 49.60 0.00 2.07 0.00 That helped drive the price of the western bituminous to southwest Ohio 57.43 0.00 2.39 0.00 prompt quarter coal higher. The price rose last week to Colorado/Utah $28.15/short ton, up by $1.15/st compared with a week earlier. Western bituminous 11,300 28.15 +1.15 1.25 +0.05 That has affected the spot rail rate from Colorado mines. to St. Louis 56.98 +1.20 2.52 +0.05 The rate to haul coal to St Louis, Missouri, increased this month by 5¢/st, to $28.25/st. The rate to take coal to the Tennessee Valley Authority (TVA) rose by the same amount to $32.15/st. Coal freight rates $/st Meanwhile, rail rates this month from PRB mines were unchanged as demand for that coal was limited by pressure on purchases. The rate to haul coal to TVA was unchanged at PRB to St Big Sandy to Louis St Louis 22.70 13.95 Contents

Rail rates 2

Freight and barge rates 3 St Louis to Central App Davant to export Coal markets 4 13.80 26.95 Delivered coal 6 Barge Fundamentals 7 Freight USGC to ARA News 10 Rail $/t 14.25

Market Summary Rail Rates

$29.65/st. The rate to the US southeast was steady at $33/st. Eastern US rail rates, Dec $/st PRB coal demand is likely to remain challenged in coming Rate ± ± weeks. The weather outlook today showed a marginal loss of Central Appalachia to: heating demand next week as colder weather in the southern East Coast Export Terminals 26.95 +0.50 +1.9% Carolinas 29.80 0.00 0.0% US was more than offset by warmer weather in the east, ac- Southwest Ohio 20.55 0.00 0.0% cording to the private forecaster Commodity Weather Group. Florida 33.85 0.00 0.0% Temperatures across much of the country will remain New York 27.75 0.00 0.0% above normal for the next two weeks, curbing gas demand for US southeast 28.05 0.00 0.0% TVA 24.95 0.00 0.0% heating. Warmer-than-normal weather will blanket the north- Pittsburgh Seam: ern US on 13-17 December and cover most of the US on 18-22 Florida 34.90 0.00 0.0% December. New York 22.80 0.00 0.0% Winter spark spreads for 10,000 Btu/kWh coal units in the East coast export terminals 21.00 +0.50 +2.4% Illinois basin: Electric Reliability Council of Texas last week entered negative Southwest Ohio 13.50 0.00 0.0% territory, far below the $8/MWh it began the fourth quarter Illinois basin 11.70 0.00 0.0% with. And margins in the Northern Illinois hub fell by $2.74/ US southeast 32.95 0.00 0.0% MWh from 30 November to $5.41/MWh on 4 December. Florida 35.65 0.00 0.0% Natural gas futures have also tumbled amid mild weather Eastern US rail rates plus fuel surcharges, Jan $/st forecasts and meager consumption. Rate Dec ± The recent drop in natural gas prices runs against expecta- Central Appalachia to: tions some utilities have had that coal consumption would be East coast export terminals 27.37 +26.83 +2.0% stronger in 2021 because the cost of burning natural gas would Carolinas 30.22 +30.18 +0.1% Southwest Ohio 20.82 +20.80 +0.1% be higher. Florida 35.00 +34.90 +0.3% Nymex gas prices for January and February on 7 Decem- New York 28.29 +28.24 +0.2% ber were trading below July and August, suggesting that US US southeast 28.89 +28.81 +0.3% gas market participants do not expect prices to rise to meet TVA 25.81 +25.74 +0.3% Pitt Seam to: winter heating demand. Florida 36.16 +36.04 +0.3% Buyers of PRB coal are understood still to be holding abnor- New York 23.30 +23.26 +0.2% mally high on-site coal inventories, which have required many East coast export terminals 21.31 +20.79 +2.5% to hold off on purchases and delay 2020 shipments for delivery Illinois basin to: Southwest Ohio 13.81 +13.79 +0.1% into the new year. Inventories remain high even though PRB Illinois basin 11.79 +11.79 0.0% coal receipts dropped during the third quarter when coal use US southeast 33.63 +33.57 +0.2% traditionally rises. Florida 36.80 +36.70 +0.3% based on CSX fuel surcharge; estimated 105st/car

Western US rail rates, Dec $/st Western US rail rates plus fuel surcharges, Jan $/st Rate ± ± BNSF ± UP* ± UP† ±

PRB to: PRB to: ERCOT 30.25 0.00 0.0% Ercot 32.28 +0.3% 30.96 +0.3% 32.28 +0.3% St Louis region 22.70 0.00 0.0% St Louis region 24.48 +0.4% 23.32 +0.4% 24.48 +0.4% US southeast 33.00 0.00 0.0% US southeast 35.67 +0.4% 33.93 +0.4% 35.67 +0.4% Southwest Ohio 27.50 0.00 0.0% Southwest Ohio 29.69 +0.4% 28.27 +0.4% 29.69 +0.4% TVA 29.65 0.00 0.0% TVA 32.53 +0.4% 30.66 +0.5% 32.53 +0.4% Superior Terminal 19.50 0.00 0.0% Superior Terminal 20.86 +0.3% 19.97 +0.3% 20.86 +0.3% Colorado to: Colorado to: TVA 32.15 +0.05 +0.2% TVA 34.18 +0.4% 32.86 +0.5% na na St. Louis region 28.25 +0.05 +0.2% St. Louis region 29.91 +0.4% 28.83 +0.5% na na *for coal trains originating in Colorado, Utah, Illinois, other states or certain con- tracts †for coal trains originating in Wyoming, estimated 118st/car

Freight and barge Rates

Freight rates $/t Spot US barge rates, Nov $/st Current Prior 4-week Bid Ask Mid ± ± week week avg Domestic movements US north of Cape Hatteras to Big Sandy to Pittsburgh 7.80 8.70 8.25 0.00 ARA panamax 13.50 13.75 -0.25 11.75 Port Amherst to Cincinnati 7.45 8.20 7.83 0.00 Japan panamax 28.75 29.25 -0.50 26.75 Port Amherst to Pittsburgh 7.95 8.85 8.40 0.00 ARA capesize 8.75 8.50 +0.25 9.25 Big Sandy to St Louis 12.95 14.95 13.95 0.00 West coast North America to Movements to export terminals ARA panamax 15.00 15.00 0.00 12.50 Big Sandy to Davant 17.30 20.30 18.80 0.00 Japan panamax 13.00 13.00 0.00 11.00 Birmingham to Mobile 12.55 13.55 13.05 0.00 Puerto Bolivar to Louisville to Davant 14.30 16.30 15.30 0.00 ARA panamax 13.30 13.34 -0.04 11.34 Port Amherst to Davant 18.30 21.30 19.80 0.00 US Gulf coast to St Louis to Davant 12.80 14.80 13.80 0.00 ARA panamax 14.25 14.50 -0.25 13.00 Northbound backhauls Richards Bay to Davant to Chicago 18.00 21.00 19.50 0.00 ARA capesize 5.45 6.20 -0.75 6.68 Davant to Cincinnati 17.0 0 19.00 18.00 0.00 ARA panamax 13.60 13.58 +0.02 13.54 Davant to Huntington 24.00 28.00 26.00 0.00 Indonesia to Davant to Pittsburgh 27.0 0 31.00 29.00 0.00 China panamax 8.40 7.99 +0.41 7.27 Davant to St Louis 14.00 15.00 14.50 0.00 Australia to Japan panamax 12.40 12.62 -0.22 9.94

Barge rate comparison $/st Route Fertilizer ± Route Coal ± Route Grain ±

Dubuque * na Mid-Mississippi 22.93 -3.6% Naples through Peoria 18.50 0.0% Lower Illinois river 21.58 +0.5% St Louis 16.50 0.0% St Louis to Davant 13.80 0.0% St Louis 14.88 +6.5% Cincinnati 20.00 0.0% Port Amherst to Cincinnati 7.83 0.0% Cincinnati 22.18 +3.5% Paducah 18.00 0.0% Big Sandy to St Louis 13.95 0.0% Lower Ohio 19.11 +3.5%

* No freight rates available during the winter because of seasonal river closure. Prior fertilizer barge rate was on 5 November 2020.

Grain rates rise are shipped safely from one state to another,” senator John Most grain barge rates rose slightly last week, while fertilizer Barrasso (R-Wyoming). rates were steady, as the harvest shipping season neared an Ohio river coal shipments will slow for a few days. The end. corps today began a partial closure of the Smithland lock and Spot northbound fertilize shipments were limited as barge dam on the Ohio river near Brookport, Illinois. operators prioritized remaining grain shipping demand. The lock will be closed during daylight hours until 12 De- The US House of Representatives today approved legisla- cember to make repairs, the corps said. tion reauthorizing the Water Resources Development Act, Additional work will slow export coal barge shipments on which allows the Army Corps of Engineers to conduct vital the Mississippi river. waterway infrastructure projects, including lock and dam The lower Mississippi river will be closed to southbound maintenance, port expansions and dredging. barges at milepost 356 near Natchez, Mississippi, during day- The US Senate has not approved the legislation. light hours until 14 December for river grading, according to “By deepening coastal ports and improving inland water- barge operator American Commercial Barge Line. ways, the legislation will help ensure American-made goods

Coal markets

Coal prices mixed amid rising heating demand Weekly prompt-quarter physical coal markets, 1Q21 $/st Direct-delivered US coal prices were flat to higher last week as Price ± colder weather stoked electricity demand in some regions. Powder River basin Coal-fired generation in major US electric grids rose last fob mine/rail 8,800 0.8lb SO2 11.60 0.00 fob mine/rail 8,400 0.8lb SO2 8.73 0.00 week amid colder temperatures. But a decrease in natural gas Illinois basin futures and forecasts for warmer weather in the middle of the Illinois/Indiana mine 11,500 5lb SO2 29.00 0.00 month suggest coal market challenges remain. Illinois/Indiana mine 11,000 6lb SO2 26.00 0.00 Some Northern Appalachia coal prices rose amid stronger Pittsburgh Seam fob mine 13,000 3.5lb SO2 37.70 +0.50 demand and higher regional natural gas and export prices. fob mine 13,000 4.5lb SO2 37.4 0 +0.50 Illinois basin coal prices were unchanged amid shifting fun- Central Appalachia damentals. Buyers were rethinking how much coal they should NYMEX-spec barge 12,000 1% 49.60 0.00 buy for 2021 as forward natural gas prices fell again. But near- CSX rail 12,000 1.67lb SO2 47.90 0.00 CSX rail 12,500 1.6lb SO2 50.70 0.00 term coal demand increased on higher heating demand. Colorado/Utah Powder River basin prices were unchanged as headwinds Western bituminous 11,300 <1% 28.15 +1.15 against coal consumption rose. Weather forecasts are calling Uinta basin, Utah 11,700 <1% 34.00 0.00 for warmer-than-average temperatures in mid-December that International $/t could curb electricity demand. Next 60 days Energy Sulfur Price ±

Atlantic basin coal prices jumped on tight supply and Northwest Europe (cif ARA) 6,000 kcal <1% 63.49 +1.93 steady demand. Colombian and some US coal prices reached Colombia (fob Puerto Bolivar) 11,300 Btu <1% 55.50 +2.25 their highest levels in more than 18 months. South Africa (fob Richards Bay) 6,000 kcal <1% 80.52 -1.25

Delivered coal prices $/st

Powder River basin Price Pittsburgh seam fob mine/rail 8,800 0.8 11.60 to Ercot 43.88 Price to TVA 4 4.13 fob mine 13,000 4.5 37.4 0 to New York 60.70

Illinois basin Central Appalachia Colorado/Utah Price Price Price Illinois/Indiana mine 11,500 5.0 29.00 Big Sandy/CSX rail 12,500 1.6 50.70 Western bituminous 11,300 28.15 to Florida 65.80 to Carolinas 80.92 to St Louis 56.98 Nymex-spec barge 12,000 1% 49.60 to southwest Ohio 57.43

Coal markets

Lighthouse, White Stallion file for Chapter 11 under an agreement with the Sierra Club and the National Two US coal producers filed for Chapter 11 bankruptcy court Parks Conservation Association. protection last week amid ongoing challenging market con- Rutledge, along with CURAD and the affordable energy ditions, including low natural gas prices and dwindling coal coalition, in December 2018 asked the court to review the demand. settlement. They argued Entergy would pass on the costs of Illinois basin coal producer White Stallion Energy filed for the early retirements to Arkansas ratepayers. Chapter 11 on 2 December with the US Bankruptcy Court for the District of Delaware, after “facing a severe, unexpected Moody’s lowers Arch Resources’ credit rating cash shortage brought on by, among other things, a steep Moody’s Investors Service has downgraded Arch Resources’ decline in the broader coal market.” credit rating, citing challenging conditions for the coal industry Powder River basin producer Lighthouse Resources filed on going into 2021. 3 December, also with the US Bankruptcy Court for the District The ratings agency on 3 December lowered Arch’s Corpo- of Delaware. rate Family Rating and its secured ratings to B2 from B1. The The producers cited disruptions caused by the Covid-19 company’s speculative grade liquidity rating was unchanged. pandemic as worsening already challenging market conditions. Underpinning the rating action is Arch’s commitment to the development of its Leer South project in Alabama despite Vistra to close Coleto Creek coal plant in 2027 “weakness in global metallurgical coal pricing and significant Vistra Energy will shut its Coleto Creek coal-fired power plant competitive issues in the Powder River basin [PRB] thermal in Texas in 2027 to avoid making environmental upgrades, the coal production region,” Moody's vice president and senior company said. credit officer Ben Nelson said. Vistra said it would need to invest “tens of millions of dollars in new equipment” to comply with US Environmental US court upholds DTE, Sierra Club settlement Protection Agency's effluent limitations and coal ash stor- A federal judge will allow an agreement between environ- age and handling rules if it were to operate the 650MW plant mental group Sierra Club and utility DTE Energy that would beyond 2027. shut three coal-fired power plants in Michigan by 2022 to go “This investment cannot be justified based on the underly- forward, over the objection of the US government. ing economics of the plant and the uncertainty of more strin- Judge Bernard Friedman of the US District Court for the gent regulations to come,” the company said. Vistra declined Eastern District of Michigan said the agreement struck earlier to be more specific on the timing of Coleto Creek's planned this year is a private contract that the court has no jurisdic- closing and said it could retire the plant earlier than 2027 “if tion over. Friedman also said the settlement does not jeopar- economic conditions dictate.” dize a separate consent decree DTE reached with the Environ- mental Protection Agency and the environmental group. Judge blocks attempt to stop coal unit closures A federal court judge has denied Arkansas’ attempt to block SPP coal dispatch fell by 20pc in November a settlement between US utility Entergy and environmental Coal-fired power dispatch in the Southwest Power Pool (SPP) group the Sierra Club that would result in two coal-fired power fell by 19pc in November as hot weather and strong wind gen- plants in the state shutting by the end of the decade. eration pinched demand for coal generation. The US District Court for the Eastern District of Arkansas Dispatch from coal-fired units fell to an average of 197,812 ruled that Arkansas attorney general Leslie Rutledge (R), her MWh/d last month, down from 242,88 MW/d in November 2019. office’s Consumer Utilities Rate Advocacy Division (CURAD) and Warmer-than-normal weather hung over the SPP, which advocacy group the Arkansas Affordable Energy Coalition did spans the Texas Panhandle and Oklahoma to North Dakota, not have standing to intervene in the settlement. throughout the month, according to the National Oceanic and Entergy in November 2018 agreed to close its White Bluff Atmospheric Association. Weather in the region was within and Independence coal plants in 2028 and 2030, respectively, historical averages through November 2019.

Delivered coal

Delivered coal prices $/st Delivered coal prices $/mmBtu Hubs Hubs

fob mine/rail fob mine/rail fob mine/rail fob mine/rail Powder River basin Powder River basin 8,800 0.8 8,400 0.8 8,800 0.8 8,400 0.8 Coal 11.60 8.73 Coal 0.66 0.52 Ercot 43.88 41.01 Ercot 2.49 2.44 St Louis region 36.08 33.21 St Louis region 2.05 1.98 US southeast 47.27 44.40 US southeast 2.69 2.64 Southwest Ohio 41.29 38.42 Southwest Ohio 2.35 2.29 TVA 4 4.13 41.26 TVA 2.51 2.46 Superior Terminal 32.46 29.59 Superior Terminal 1.84 1.76 Illinois/Indiana Illinois/Indiana Illinois/Indiana Illinois/Indiana Illinois basin Illinois basin mine 11,500 5.0 mine 11,000 >6.0 mine 11,500 5.0 mine 11,000 >6.0 Coal 29.00 26.00 Coal 1.26 1.18 Southwest Ohio 42.81 39.81 Southwest Ohio 1.86 1.81 Illinois basin 40.79 37.79 Illinois basin 1.77 1.72 Gulf coast export 45.80 42.80 Gulf coast export 1.99 1.95 US southeast 62.63 59.63 US southeast 2.72 2.71 Florida 65.80 62.80 Florida 2.86 2.85 fob mine fob mine 13,000 fob mine 12,500 fob mine fob mine 13,000 fob mine 12,500 Pittsburgh seam Pittsburgh seam 13,000 3.5 4.5 6.0 13,000 3.5 4.5 6.0 Coal 37.70 37.4 0 35.80 Coal 1.45 1.44 1.43 Florida 73.86 73.56 71.96 Florida 2.84 2.83 2.88 New York 61.00 60.70 59.10 New York 2.35 2.33 2.36 Big Sandy/CSX Big Sandy/CSX Central Appalachia rail Central Appalachia rail rail 12,500 1.6 rail 12,500 1.6 Coal 50.70 Coal 2.03 East Coast export 78.07 East Coast export 3.12 Carolinas 80.92 Carolinas 3.24 Southwest Ohio 71.52 Southwest Ohio 2.86 Florida 85.70 Florida 3.43 New York 78.99 New York 3.16 US southeast 79.59 US southeast 3.18 TVA 76.51 TVA 3.06 Nymex-spec Nymex-spec Central Appalachia barge Central Appalachia barge barge 12,000 1% barge 12,000 1% Coal 49.60 Coal 2.07 Pittsburgh 58.00 Pittsburgh 2.42 Southwest Ohio 57.43 Southwest Ohio 2.39 St. Louis 63.55 St. Louis 2.65 Green River Uinta basin, Green River Uinta basin, Colorado/Utah Colorado/Utah basin 11,300 Utah 11,700 basin 11,300 Utah 11,700 Coal 28.15 34.00 Coal 1.25 1.45 TVA 61.01 66.86 TVA 2.70 2.86 St Louis 56.98 62.83 St Louis 2.52 2.69

Fundamentals

Argus competing fuels analysis PRB coal Illinois basin Central Appalachia Western bituminous Natural gas Delivery: $/st $/mmBtu $/st $/mmBtu $/st $/mmBtu $/st $/mmBtu $/mmBtu

Southwest Ohio 41.29 2.35 42.81 1.86 71.52 2.86 1.94 USGC terminal 45.80 1.99 68.40 2.85 USEC export 78.07 3.12 TVA 4 4.13 2.51 76.51 3.06 61.01 2.70 2.21 Southeast 47.27 2.69 79.59 3.18 3.08 Assessed prices are Big Sandy/CSX 12,500 1.6lb to southwest Ohio, USEC, TVA and southeast; Nymex barge to USGC; Illinois 11,500 Btu, 5.0lb; and PRB 8,800 Btu, 0.8lb Coal production trends mn st US generation trends ’000MWh 4 weeks ended on: 28 Nov 20 30 Nov 19 ± ± Sep 20 Sep 19 ± % of total Wyoming 17,923.37 20,057.48 -2,134.11 -10.6% Coal 68,396 85,707 -20.2% 20.5% West Virginia 5,202.14 6,460.71 -1,258.57 -19.5% Natural gas 141,407 149,688 -5.5% 42.3% Kentucky 1,800.67 2,662.30 -861.62 -32.4% Nuclear 65,727 66,064 -0.5% 19.7% Pennsylvania 3,084.34 3,462.24 -377.90 -10.9% Hydroelectric 19,182 18,526 +3.5% 5.7% Indiana 1,598.27 2,510.02 -911.75 -36.3% Other renewables 36,774 37,373 -1.6% 11.0% Illinois 2,276.36 3,492.72 -1,216.36 -34.8% Petroleum coke 457 581 -21.3% 0.1% Colorado 751.19 881.00 -129.81 -14.7% Other sources net 2,224 2,514 -11.5% 0.7% Utah 907.87 1,056.62 -148.75 -14.1% Total generation 334,167 360,452 -7.3% Appalachia 11,005.56 13,625.32 -2,619.76 -19.2% — EIA East 16,265.47 21,465.65 -5,200.18 -24.2% West 26,582.27 29,362.02 -2,779.75 -9.5% Total 42,8 47.73 50,827.66 -7,979.93 -15.7% — EIA

US coal stocks by region ’000st Sep 20 Sep 19 Aug 20 Stocks Days burn ± on year ± on month Stocks Days burn Stocks Days burn

Northeast Bituminous 3,910 284 +0.3% +5.9% 3,897 191 3,691 278 Sub-bit 160 159 -1.2% 0.0% 162 159 160 185 South Bituminous 17,9 0 8 105 -15.9% -9.3% 21,293 104 19,740 114 Sub-bit 6,060 83 +29.6% +2.1% 4,676 61 5,936 76 Midwest Bituminous 13,327 112 +30.1% +2.1% 10,242 85 13,059 115 Sub-bit 28,696 125 +28.3% +4.3% 10,242 93 27,50 9 125 West Bituminous 3,815 160 +11.9% -2.4% 3,408 72 3,910 163 Sub-bit 23,383 92 +11.9% -4.5% 20,078 72 24,495 92 US total Bituminous 38,960 116 +0.3% -3.6% 38,840 100 0 125 Sub-bit 58,299 105 +23.3% +0.3% 47,285 79 58,099 125 — EIA Eastern coal inventories by state ’000st Western coal inventories by state ’000st State Sep 20 Sep 19 ± State Sep 20 Sep 19 ±

Ohio 7,0 8 0 5,119 +38.3% Texas 9,999 6,693 +49.4% Indiana 10,264 7,0 66 +45.3% Missouri 7,718 5,621 +37.3% Pennsylvania na 4,098 na Michigan 4,940 3,967 +24.5% Illinois 6,022 4,441 +35.6% Arizona 3,600 2,943 +22.3% West Virginia 5,602 4,865 +15.2% Wyoming 5,14 4 3,877 +32.7% Kentucky 4,817 5,571 -13.5% Wisconsin 3,264 3,472 -6.0% Georgia 4,605 4,093 +12.5% Colorado 3,318 3,895 -14.8% North Carolina 2,971 3,116 -4.7% Utah 4,617 3,005 +53.6% Alabama 2,858 na na Iowa 6,675 3,433 +94.4% Florida 1,980 2,780 -28.8% Kansas 3,591 2,562 +40.2% Tennessee na 2,560 na Oklahoma 2,797 2,341 +19.5% South Carolina 1,572 2,461 -36.1% Minnesota 2,902 3,909 -25.8% Virginia na na na Nebraska 2,878 2,264 +27.1% New York na na na Arkansas 3,518 3,377 +4.2% — EIA — EIA

Fundamentals

North American port loading st Year-on- Month-on- Three- Three- 1 Oct 20 1 Sep 20 1 Aug 20 1 Oct 19 year month month avg month avg ± ± ± current year prior year

Hampton Roads, Virginia Lamberts Point (NS) Domestic 0 0 0 0 na na 0 0 na Export 783,456 675,035 737,6 47 1,024,762 -23.5% +16.1% 732,046 1,152,606 -36.5% Pier IX (Kinder Morgan) Domestic 0 0 0 0 na na 0 1,427 -100.0% Export 184,498 479,14 4 182,602 418,610 -55.9% -61.5% 282,081 491,046 -42.6% DTA (Multiple) Domestic 0 0 0 0 na na 0 0 na Export 983,680 910,772 756,182 902,015 +9.1% +8.0% 883,545 991,703 -10.9% Mobile, Alabama McDuffie Terminal Domestic na na na 0 na na na 0 na Alabama State Docks Export na na na 0 na na na 0 na Totals Domestic 0 0 0 0 na na 0 1,427 -100.0% Export 1,951,634 2,064,951 1,676,431 2,345,387 -16.8% -5.5% 1,897,67 2 2,635,355 -28.0%

— port-supplied data

Destinations for US coal exports st Oct 20 Oct 19 ± Last 3 months Year-ago ±

Canada 528,105 519,970 +1.6% 1,519,257 1,658,688 -8.4% Brazil 541,693 418,454 +29.5% 2,015,615 1,504,063 +34.0% Germany 83,719 230,325 -63.7% 175,338 575,261 -69.5% Netherlands 424,370 630,744 -32.7% 1,281,989 2,098,418 -38.9% Italy 36,660 288,606 -87.3% 155,563 620,914 -74.9% Mexico 54,149 148,685 -63.6% 168,676 5 47,919 -69.2% UK 156,910 84 +187197.4% 307,191 210,835 +45.7% — Global Trade Tracker

Imports st Oct 20 Oct 19 ± Last 3 months Year-ago ±

Colombia 209,349 578,851 -63.8% 808,905 1,429,919 -43.4% Venezuela 0 0 na 0 0 na Canada 34,753 86,994 -60.1% 128,243 226,731 -43.4% Indonesia 17,207 67,0 98 -74.4% 88,634 200,988 -55.9% Others 1,371 9,434 -85.5% 51,645 54,750 -5.7% Steam 237,97 7 661,521 -64.0% 982,075 1,702,297 -42.3% Met 24,703 80,856 -69.4% 95,352 210,091 -54.6% Total 262,680 742,377 -64.6% 1,07 7,427 1,912,388 -43.7% — Global Trade Tracker

Exports st Oct 20 Oct 19 ± Last 3 months Year-ago ±

Coking - all destinations 3,416,330 3,517,0 96 -2.9% 9,874,782 13,024,584 -24.2% Steam - all 1,628,800 3,072,903 -47.0% 5,063,343 9,055,996 -4 4.1% Total - all destinations 5,045,129 6,590,000 -23.4% 14,938,125 22,080,580 -32.3% — Global Trade Tracker

Rail metrics

Freight cars on line Week ended 27 Week ended 29 4 weeks ended 4 weeks ended ± ± ± Nov 20 Nov 19 27 Nov 20 29 Nov 19

BNSF Open top hopper 47,337 56,702 -9,365 47,23 4 57,533 -10298 -17.9% Gondola 7,739 8,444 -705 7,8 45 8,732 -887 -10.2% Total 481,356 519,382 -38,026 483,584 525,900 -42316 -8.0% CSX Open top hopper 38,242 39,322 -1,080 38,081 39,613 -1,532 -3.9% Gondola 12,646 11,414 +1,232 12,688 11,600 +1,088 +9.4% Total 383,282 365,774 +17,50 8 382,349 365,521 +16,828 +4.6% KCS Open top hopper 1,987 2,179 -192 2,062 2,333 -271 -11.6% Gondola 2,000 2,018 -18 1,946 1,935 +11 +0.6% Total 63,526 65,714 -2,188 62,650 65,622 -2972 -4.5% NS Open top hopper 31,158 35,453 -4,295 31,186 35,890 -4703 -13.1% Gondola 14,572 14,006 +566 14,344 13,976 +369 +2.6% Total 317,420 323,408 -5,988 313,783 327,163 -13380 -4.1% UPR Open top hopper 32,044 32,839 -795 31,993 33,027 -1034 -3.1% Gondola 10,316 10,726 -410 10,436 10,874 -438 -4.0% Total 567,4 0 6 579,498 -12,092 569,234 580,500 -11266 -1.9% CN Open top hopper 2,579 2,899 -320 2,579 2,915 -336 -11.5% Gondola 2,428 3,059 -631 2,507 2,999 -493 -16.4% Total 79,690 88,806 -9,116 81,145 84,376 -3231 -3.8% CP Open top hopper 375 334 +41 367 320 +47 +14.8% Gondola 1,720 1,365 +355 1,725 1,394 +332 +23.8% Total 48,758 47,418 +1,340 48,862 48,388 +474 +1.0%

Average coal rail metrics, 3 Oct 20 to 27 Nov 20 4-week average coal train loadings, 31 Oct 20 to 27 Nov 20 Loaded Empty Dwell Trains Plan Loadings % met Speed cars not cars not time held mph moved moved hours short Western coal >48 hrs >48 hrs Powder River Basin BNSF 33 30 90.9% BNSF Last 4 weeks 25.2 3.8 6.8 85.7 549.7 Prior 4 weeks 24.6 3.3 4.6 54.8 523.0 UP 10 10 100.0% ±% +2.4% +15.2% +47.8% +56.4% +5.1% Uinta Basin UP 4 3 75.0% CN Last 4 weeks 22.4 2.8 0.7 2.0 1.7 Illinois Basin CN 187 184 98.4% Prior 4 weeks 23.8 3.8 0.2 1.2 1.9 ±% -5.9% -26.3% +250.0% +66.7% -10.5% CSX 2,703 2,655 98.2% CP Last 4 weeks 23.9 0.0 0.0 0.5 71.8 NS 2 2 100.0% Prior 4 weeks 24.7 0.0 0.3 0.5 1.0 UP na na na ±% -3.2% nc -100.0% nc +7080.0% CSX Last 4 weeks 21.9 13.8 1.5 39.0 8.1 Other BNSF 2 2 100.0% Prior 4 weeks 22.3 6.2 0.7 36.6 13.2 Eastern coal ±% -1.8% +122.6% +114.3% +6.6% -38.6% Northern Appalachia CSX 3,321 3,302 99.4% KCS Last 4 weeks 25.3 0.0 1.3 0.3 0.3 Prior 4 weeks 24.2 0.0 0.8 0.0 0.8 NS 5 4 80.0% ±% +4.5% nc +62.5% na -62.5% Central Appalachia CSX 4,269 4,213 98.7% NS Last 4 weeks 19.1 8.6 4.0 335.2 4.5 NS 6 5 83.3% Prior 4 weeks 20.1 7.6 3.3 243.3 62.8 ±% -5.0% +13.2% +21.2% +37.8% -92.8% Southern Appalachia CSX 1,000 989 98.9% UP Last 4 weeks 28.1 6.1 6.8 67.5 22.8 NS 0 0 na Prior 4 weeks 27.9 5.8 8.0 79.3 44.3 * CSX provides cars/week. ±% +0.7% +5.2% -15.0% -14.9% -48.5% CN provides cars/day.

— Railroad data supplied to the US Surface Transportation Board

News

US coal imports on track for 28-year low than 1,000st of coal from January-September, according to US US coal imports are on track to reach a 28-year low this year Energy Information Administration data. as the economic collapse associated with the Covid-19 pan- US buyers have been heard to recently secure thermal coal demic puts a damper on electricity demand and industrial from Colombia for early next year. Gains in petroleum coke production. prices in recent months have made coal-fired generation more The country took in 4.04mn short tons (3.66mn metric attractive for generators that can take both types of coal. tonnes) of coal during the first ten months of this year, US But in general imports could continue to fall in coming Census Bureau data released last week shows. That was 29pc years. Utility holding company AES is scheduled to retire its less than in the same period of 2019 and the lowest January- 206MW coal plant in Hawaii in 2022, and the power purchase October total since 1992, when imports for the first ten agreement its Puerto Rico plant has with the Puerto Rico Elec- months of the year were 3.07mn st. tric Power Authority expires in November 2027. In addition, Both thermal and metallurgical coal imports were lower the governor of Puerto Rico signed a bill into law last year that than they had been in the same period of 2019. Coking coal is eliminates coal-fired generation by 1 January 2028. on track to have its weakest year since Census started re- Imports to San Juan, Puerto Rico, totaled 1.3mn st for the porting coal data in 1989, with imports totaling 259,119st for first 10 months of 2020, down from 1.5mn st a year earlier. All January-October 2020. The US imported 617,110st of metallur- of the coal came from Colombia. gical coal in the same period of 2019. US imports through Honolulu, Hawaii, fell to 479,154st from Imports of thermal coal, anthracite and lignite fell to 586,691st in January-October 2019. All of that coal was from 3.78mn st over January-October 2020 from 5.1mn st a year Indonesia. earlier. The last time the ten-month total was lower was in Most other thermal coal imports went through Mobile, Ala- 1995. bama, or Tampa, Florida, this year. Most coking coal imports Mitigation measures put in place to try to control the went to the Midwest, Census data show. spread of the coronavirus and the economic recession cut into By Courtney Schlisserman steel production and electricity demand this year, limiting the need for both domestic and international local. US thermal, coking coal exports fell in October In addition, Southern Company subsidiary Alabama Power US thermal coal exports fell to their second-lowest level in started taking only Alabama coal at its EC Gaston plant, and four years in October despite improving fundamentals in the Granite Shore Power’s Schiller plant in New Hampshire has market, while coking coal exports fell by 3pc on the year and operated only January, February and May and consumed less month to 3.1mn t in October.

Barge rates to US export terminals $/st West coal originations, current over year-ago

Louisville to Davant Big Sandy to Davant 0.0 20.0

19.0 -500.0

18.0 -1,000.0

17.0 -1,500.0 16.0 -2,000.0 15.0

14.0 -2,500.0 Nov 19 Mar 20 Jul 20 Nov 20 13 Jun 20 8 Aug 20 3 Oct 20 28 Nov 20

News

A total 1.63mn short tons (1.48mn metric tonnes) of steam Exports to Brazil rose by 29.4pc on the year to 491,199t, coal departed US ports during the month, according to US but fell by 37pc from September. Census Bureau data released last week. That beat only August Shipments to India rose by almost 60pc from a year earlier as the lowest level since September 2016. to a six-month high of 373,834t. Steam coal exports totaled 3.07mn st in October 2019. January-October exports fell by 23pc from a year earlier The decrease in shipments underscores challenges to the to 31.09mn t. Countries that US producers tend to supply on market in the middle of this year as the economic fallout from a contractual basis reduced imports of US coking coal more the Covid-19 pandemic cut into coal demand. Prices and de- significantly than countries that typically buy more on a spot mand started to improve around late-September amid tighter basis. Shipments to Japan fell by 46pc to 2.73mn t, and ship- global supply and buyer interest in stocking up for winter, ments to the Netherlands and France fell by 33pc and 26pc, but any boost from those conditions likely will not show up in respectively, to 2.64mn t and 741,058t. Exports to Brazil export volumes for the end of this year or 2021. and India fell by 7pc and 6pc, respectively, and shipments to In October, thermal coal exports to almost every region Turkey nearly doubled as mills took advantage of weaker spot of the world were lower than they had been a year earlier. prices earlier in the year. The primary exception was shipments to Central and South By Courtney Schlisserman and Brendan Kjellberg-Motton America, which rose to 228,746st from 144,007st thanks mostly to increased demand from the Dominican Republic. US Senate bill would benefit rail shippers Steam coal exports to Australia also rose, to 2,323st from A Senate Democrat is championing legislation that would almost nothing in October 2019. broaden federal regulators’ authority to intervene in freight Shipments to Asia dropped to 824,336st from 1.32mn st a rail service disputes, a proposed change railroads already are year earlier. That was led by a decrease in exports to India, to lining up to oppose. 624,538st from 868,402st in October 2019. Wisconsin senator Tammy Baldwin is sponsoring a measure Thermal coal exports to Europe plunged to 272,758st from that would empower the US Surface Transportation Board 794,806st. Just 85,311st of steam coal was headed to the Neth- (STB) to step in to resolve disputes involving rail freight ship- erlands, which was less than one-third of what was destined ments moving under contract. for there in October 2019. Under existing law, the STB can only intervene in service Meanwhile, the decrease in steam coal shipments to Africa disputes related to freight that is shipped under tariff, or spot, was led by a 74pc drop in exports to Egypt. rates. Meanwhile, US coking coal exports to the EU fell by 37.3pc Baldwin has long been pushing legislation designed to on the year and 7.2pc on the month to 767,593t as rising Co- enhance regulators’ ability to resolve rail disputes in hopes of vid-19 cases deterred mills from buying extra tonnes. keeping freight moving freely.

BNSF vs UP coal train speeds mph CSX vs NS coal train speeds mph

BNSF UP NS CSX 32.0 26.0

30.0 24.0

28.0 22.0

26.0 20.0

24.0 18.0

22.0 16.0 21 Dec 19 11 Apr 20 1 Aug 20 21 Nov 20 21 Dec 19 11 Apr 20 1 Aug 20 21 Nov 20 — STB — STB

News

“Now more than ever, our Wisconsin businesses need a railroad carriers” for allegedly putting a “shunt” on tracks quality and responsive railroad system to effectively get their owned by western carrier BNSF. goods to market,” Baldwin said. A shunt disrupts the low level electrical current on the The latest version of her bill, known as the Rail Shipper tracks and can disable certain safety features. Shunts have Fairness Act, would allow STB to issue emergency service or- caused railroad crossing technology to malfunction and inter- ders for contract shipments, while also increasing the amount fered with automatic braking systems. railroads can be fined for failing to comply with an order. Since January, investigators have discovered 41 “shunts” The bill would also put into law a version of reciprocal placed on BNSF tracks in Whatcom and Skagit counties in switching, which has been under review at STB since a pro- Washington, according to the criminal complaint. In one case, posed rule was introduced in July 2016. Reciprocal switching a shunt caused “the near-derailment of tanks of hazardous would allow a captive shipper to use the closest railroad to chemicals,” US attorney Brian Moran said. “These crimes en- access another one if certain conditions are met. Baldwin’s bill danger our community.” would allow shippers to get rates to and from any interchange The criminal complaint did not identify an alleged motive points of two or more railroads and allow switching within 100 but pointed to a claim of responsibility published on the web- miles of a loading or unloading point if the STB finds it opera- site itsgoingdown.org on 22 January, shortly after the initial tionally feasible. incidents. Prosecutors describe the website as an “anarchist” The bill would require the US Government Accountabil- site. ity Office to study the industry-wide effects of the precision The posting said the actions were in support of Canadian scheduled railroading operating model and make recommen- First Nations' efforts to prevent construction of a crude pipe- dations to address any negative outcomes on shippers and line in British Columbia as well as to disrupt BNSF operations passenger railroads. and supplies for the pipeline. Railroads have consistently opposed Baldwin’s legislative BNSF police on 28 November observed over video two efforts regarding the rail sector. individuals kneeling on the tracks near a railroad crossing in The “bill attempts to roll back what has been a reasonable, Bellingham, Washington, the complaint said. BNSF contacted balanced approach of economic regulation that has benefited the Whatcom County Sheriff’s office, and sheriff’s deputies- ar both shippers and railroads,” the Association of American rested Brooks and Reiche for allegedly trespassing on railroad Railroads said. Baldwin’s bill “puts a thumb on the scale that property. would throw that delicate balance off and result in dire conse- Sheriff’s deputies found a shunt on the rail line near where quences.” the individuals had been seen. But shippers welcomed news of the bill. Brooks and Reiche were carrying a bag with wire, a drill The legislation includes “many smart regulatory reforms that and rubber gloves. The wire was similar to the wire used in would improve access to affordable and reliable rail service, other shunt incidents this year, Moran’s office said. which would help large and small businesses across the coun- The FBI’s Joint Terrorism Task Force has been investigating try,” American Chemistry Council president Chris Jahn said. the incidents since shunts were first found in January 2020. By Abby Caplan BNSF referred questions to Moran’s office. Attorneys for the two women could not be reached. US charges 2 with terrorism in BNSF incident By Abby Caplan Two women have been charged with terrorism for allegedly at- tempting to derail a BNSF train in Washington state, possibly in Chinese steel mills seek more US coking coal protest of construction of a crude pipeline in British Columbia. Chinese steel producers are keen to buy more US coking coal The US Attorney's Office for the Western District of Wash- to replace Australian cargoes blocked by import curbs, giving ington state on 30 November charged Samantha Brooks, 27, the first significant boost to this trade flow since China- im and Ellen Reiche, 23, of Bellingham, Washington, with one posed retaliatory tariffs on US coal in 2018. count each of “terrorist attacks and other violence against US coal producer Arch Resources will ship 300,000t of high-

News volatile A coal from its Leer mine in West Virginia to China Top-tier domestic coal in China still prices at a premium to under a one-year contract to a buyer, possibly a northeast US coal imports at 1,380 yuan/t ($211/t) free-on-rail. China steel mill. Enquiries for US coking coal continue to be strong, sellers “This particular buyer did test out a cargo of Leer coal said, although hikes on offers have slowed somewhat in recent previously, and they found it quite suitable,” a Beijing-based weeks. Spot offers for US and Canadian coking coal are still trader said. “Either way, they do not have any other appropri- around $180/t cfr China. ate alternatives at present.” China imposed a 25pc tariff on US coal in 2018 but it has The Argus Australian premium low-volatile coking coal since been lifted. China imported 740,500t of coking coal from index has a coke strength relativity (CSR) specification of 67-70 the US during January-October, a fraction of the 35.1mn t from CSR, higher than other origins that makes it the preferred coal Australia and the 65.2mn t total intake. for Chinese mills. But Chinese mills were verbally told to stop By Rou Urn Lee, Siew Hua Seah and Parvin Chong importing Australian coal in early October. Market participants at first expected the curbs would ease when China’s import ARA coal stocks drop to 31-month low quotas reset in 2021, but fob basis prices have since tumbled Increasing power demand in Europe drew coal stocks at the as outlooks softened for Australian coal. Amsterdam-Rotterdam-Antwerp (ARA) transshipment hub to Discussions are possibly under way with Chinese buyers for their lowest level in 31 months last week. Oak Grove premium hard coking coal with February and March Stocks decreased by 120,000t on the week to 4.6mn t. This laycans. Chinese importers are also buying US and Canadian is the lowest since May 2018, and down by 1.6mn t year on coal in spot deals. Arch’s spot volumes were also likely fully year. It is the ninth consecutive week that stocks have been sold out until April. lower than the five-year average for the period. “What the Chinese need is a high CSR replacement for A port contact said that demand from power plants enter- Australian coking coal to be blended with low CSR domestic ing peak season exceeded arrivals at terminals last week. coal, making Leer positive since it has a CSR of more than 65,” Stocks at the OBA hub decreased by 100,000t on the week a Singapore-based trader said. to 1.52mn t, while those at the Ovet terminal declined by The Leer coal has a CSR of 67-68, 32-33pc volatile matter, 20,000t to 170,000t. Inventories were flat on the week at Rot- 7-8pc ash and 1.0-1.1pc sulphur. terdam’s EMO port and the smaller EBS hub, with stocks now The higher sulphur content of Leer coal has made it standing at 2.7mn t and 210,000t, respectively. unattractive for many buyers in China because it would German coal-fired power generation decreased by 3pc on not pass customs pollutant inspections standards at most the week to 9.6GW in the seven days to 6 December, as the ports, a trader said. But northeast China ports are generally country's overall power output increased by 4pc to 62GW. But less strict with sulphur content of cargoes, so the buyer is coal-fired generation was up by 12pc on the year. Other fos- unlikely to face any major hurdles in importing this coal, the sil fuel-fired generation also declined on the week, with gas trader said. and lignite-fired output down by 5pc to 13.7GW and by 4pc to The Argus assessment for premium hard low-volatile coking 14.4GW, respectively. coal delivered on a cfr China basis has increased by 16.6pc to Higher wind output in Germany drove the decline in fos- $170.85/t cfr since early October when mills were told to stop sil fuel-fired generation. Wind output increased by 26pc on importing Australian coal. The import curbs have sent US cok- the week to 12.6GW, while hydro output increased by 7pc to ing coal prices to a record premium over Australian coal. The 1.7GW and solar generation dropped by 40pc to 1GW. most recent spot transaction for US premium hard coking coal But German wind generation is forecast to be lower this was $170/t cfr China, more than $20/t above that of Australian week, with load factors averaging under 10pc on most days, premium hard low-volatile coking coal traded at the end of which could boost demand for coal-fired generation. Mean- September and well above the fob Australia premium low- while, temperatures in Berlin are forecast to be close to volatile hard coking coal index at $103.35. seasonal norms in the seven days to 13 December.

News

One cause of tightness in the import market has been the cover $35/t in transportation costs from in inland Colombia three-month strike at Colombian coal producer Cerrejon. The to Caribbean ports and $30/ t in freight costs to Brazil, Parra mine is set to gradually restart operations this month, which noted. could relieve some of the tightness in the import market and By Diana Delgado boost coal stocks. Shallow waters on the Rhine have caused some disruption Australia Gladstone port sends no coal to China to deliveries from ARA stockpiles to end users in recent weeks The Australian port of Gladstone in Queensland did not ship and levels at key measuring point Kaub remain around the 1m coal to China in November for the first month in nearly a mark, according to monitoring service Elwis. But levels are decade, but exports stood at the second highest level this year expected to increase to around 1.25m by the end of the week. as India and Japan led stronger buying. By Robert Preston Gladstone's exports to China often ease in September-Octo- ber as annual import quotas to China fill, before rebounding in Colombia on track to record high met coke exports December ahead of the start of new quotas for the new year. Colombia is expected to export a record high of 3.5mn t of This is the first time since January 2011 that Gladstone did not metallurgic coke in 2020, coal federation Fenalcarbon said, send any coal to China in a month, following China's imposi- beating analysts’ expectations as global demand for steel re- tion of an import ban on Australian coal in October as tension covers and China emerges as a new destination for exports. between Beijing and Canberra intensified. Colombia exported 3.15mn t of metallurgical coke last year, Gladstone shipped around a third of hard coking, a third of while its coking coal exports are expected to be unchanged semi-soft coking and a third of thermal coal in 2019 to global from 2019 at 1.8mn t this year. Exports in January-September destinations, according to data from the Queensland govern- were 2.498mn t, up by 6pc on the year, data from mining as- ment. Hard coking coal accounted for around a third of 11mn sociation ACM show. t that the port sent to China in 2019 and the rest was thermal Fenalcarbon estimates that the country's metallurgic coke coal, according to data from GTT. China purchased 10.1mn t exports will rise to 4mn t in 2021. "Most countries world- of coal from Gladstone in January-November, compared to wide will support their economic reactivation in public work 9.63mn t as year earlier as it took more coal earlier in the year programmes. Consequently, the demand for steel will be when other nations lowered imports. reactivated, and there will be a greater requirement for coke Coal shippers hope that exports to China will pick up in and metallurgical coal to the extent that these reactivation December ahead of the renewal of the import quotas, as they plans are implemented,” Fenalcarbon president Juan Manuel have in previous years. It will signal a major change in Beijing’s Sanchez said. policy if they do not. Much of the growth projected for this year is possible with Despite the absence of buying from China, Gladstone China becoming a new buyer of Colombian metallurgic coke. shipped 6.24mn t in November, up by 7pc from October and Chinese demand for coke has been high on the back of strong 6pc on November 2019 and stood at the highest monthly level steel margins and relatively tight domestic supplies. Colombia since January. The increase reflected increased shipments to is expected to ship around 200,000-300,000t of metallurgical India, Japan and South Korea, after these countries cut buying coke to China in 2020, general manager of Colombia's largest in the middle of 2020 because of domestic Covid-19 lockdowns. exporter Milpa, Carlos Parra, said. Gladstone’s shipments to Vietnam eased in November but Coquecol, the country's largest producer, reactivated 7,500 remained more than triple the levels for 2019 for the year to t/month in coke battery capacity in the municipality of Cucu- date. Vietnam has overtaken Taiwan as the fifth largest buyer nuba during in the second quarter and expects to turn on a of coal from Gladstone with 4.32mn t shipped to Vietnam in 7,500 t/month battery in Samaca in January. Coquecol expects January-November. Gladstone also shipped to Malaysia, the to reach 25,000 t/month in operating capacity by early 2021. Netherlands, Brazil, Turkey and Indonesia in November, as a Colombian metallurgic coke is trading at $270/t fob, up more diverse range of buyers sought to secure Australian coal from $220/t in March, giving coke producers the margin to at low prices.

News Argus direct Argus last assessed high-grade Australian thermal coal at Web | Mobile | Alerts $70.33/t fob Newcastle for NAR 6,000 kcal/kg on 4 Decem- ber, up from $59.38/t on 20 November and from a recent low Argus Direct is the next generation platform of $46.18/t on 4 September. It assessed lower grade coal at from Argus Media. It is the premium way to access our reports, prices, market insight, $46.89/t fob Newcastle for NAR 5,500 kcal/kg on 4 December, fundamentals data and markets. up from $37.66/t on 20 November and $35.04/t on 4 Septem- ber. The heat-adjusted premium on a NAR 6,000 basis for higher grade thermal coal increased to $19.18/t on 4 December from $12.71/t on 30 October and from $8.65/t at the end of August. Argus last assessed the premium hard coking coal price at $102.60/t fob Australia on 4 December, down from $136/t in To learn more, visit our website early October before China announced its ban on coal imports. or contact your account representative. By Jo Clarke argusmedia.com/direct

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