Argus Russian Coal

Copyright © 2017 Argus Media group

Argus Russian Coal

Issue 17-36 | Monday 9 October 2017

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fob Baltic cif ARA

Argus fob Baltic ports spot coal assessment $/t

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27 Sep 16 29 Dec 16 31 Mar 17 06 Jul 17 06 Oct 17

fob Vostochny fob Newcastle

Argus fob Vostochny spot coal assessment $/t

Market CoMMentary

turkey lifts coal imports from russiaTurkey increased receipts of Russian thermal coal by 9pc on the year in January-August, to 7.79mn t, according to data from statistics agency Tuik, amid higher demand from utili-ties and households. Russian material replaced supplies from South Africa, which redirected part of shipments to more profitable markets in Asia-Pacific this year.

In August Russian coal receipts rose to over 1.26mn t, up by 15pc on the year and by around 19pc on the month.

This year demand for sized Russian coal is higher com-pared with last year because of colder winter weather in 2016-2017, a Russian supplier says. Demand for coal fines from utilities has also risen amid the launch of new coal-fired capacity, the source adds. Turkey has added 700MW of imported coal-fired capacity since August last year.

And a decrease in deliveries from South Africa to Turkey also prompted Turkish consumers to buy more coal from other origins. Turkey reduced imports of South African coal by 45pc on the year to only 951,000t in January-August, as South Africa has redirected part of shipments to Asia-Pacific this year, where prices are higher compared with the Mediterranean.

As a result, South Africa's share of Turkey's thermal coal import mix fell in the first eight months of this year to 5pc from 9pc in the same period a year earlier, while Russia slightly increased its share — by one percentage point on the year to 39pc (see table and graphs). Although in August imports from South Africa rebounded to their highest since March 2016 — to 380,000t, up from about 100,000t in August last year and only 64,000t in July.

PriCes

Contents

Coaster freight rates leap at southern Russian ports 3Latvian ports boost coal throughputs despite rail cuts 4SDS-Ugol sells coal assets 5Russian prices pick up in Asia-Pacific 5Netback prices 7-11Data: Coal production in Russia, September (preliminary) 12Data: Planned rail shipments of coal to portsand border crossing in October 2017 13-29

russian coal prices $/t

Delivery basis nar kcal/kg Delivery period 6 oct ± 29 sep

fob Baltic ports 6,000 Nov-Dec 17 86.97 -0.20

fob Black Sea ports 6,000 Nov-Dec 17 90.63 -0.25

cif Marmara* 6,000 Nov 17 100.33 0.33

fob Vostochny 6,000 Nov-Dec 17 100.00 1.00


*assessment of Russian and non-Russian coal

russian coal prices $/t

Delivery basis nar kcal/kg Delivery period Low High

fob Baltic ports 6,000 Nov-Dec 17 85.25 88.00

fob Black Sea ports 6,000 Nov-Dec 17 89.50 91.00




Issue 17-36 | Monday 9 October 2017 Argus Russian Coal

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But Colombia gained the most from lower deliveries to Turkey from South Africa. Colombia increased shipments to Turkey by 13pc to 10.65mn t in January-August, increasing its market share by 4 percentage points to 54pc over the same period. Colombian coal imports jumped in August by 77pc on the year to 1.72mn t, but this was just 4pc higher on the month.

Colombian suppliers usually deliver coal to Turkey by Capesize vessels, which results in lower freight costs, increasing competitiveness of Colombian coal compared with other origins, including Russia, on the cfr Turkey basis. Colombian coal is mostly used for power generation in Turkey.

“Colombian coal delivered by Capesize vessels remains the most competitive in Turkey,” the supplier says.

Major Russian thermal coal suppliers to Turkey include Kru, which ships coal through trading firm Carbo One, and SDS-Ugol, which also delivers coal through trading company — Mir Trade. These two suppliers together account for the lion’s share of Russian exports to Turkey. Smaller suppli-ers are Suek, Resurs, Stroyservis, the Kiyzassky opencast,

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Freight from Baltic ports to ARA, Panamax $/t

Freight rates for Panamax prompt deliveries $/t

6 Oct ± 29 Sep

Vostochny^ — South Korea 5.50 -0.30

Vostochny^ — Taiwan 7.10 -0.40

Vostochny^ — Japan 6.00 -0.20

Vostochny^ — China 6.90 -0.30

Vanino — China 6.10 -0.30

Vanino — Japan 4.90 -0.20

Vanino — Taiwan 6.20 -0.30

Vanino — South Korea 4.90 -0.20

Vanino — India* 7.80 -0.10

Baltic ports — ARA 7.00 0.00

Murmansk — Rotterdam 6.80 0.50

*Rates for Capesize deliveries; ^General cargo terminal PPK-1

Invest-Uglesbyt and others, shipping directly and through trading firms.

Russia is Turkey's second-largest supplier of thermal coal after Colombia. Russia usually sends thermal coal for Turkish power plants on Panamax vessels from Baltic Sea ports or Ukrainian Black Sea ports. Turkish utilities, as well as cement producers, consume Russian thermal coal fines. Russia also ships sized coal to Turkish households, mainly in small parcels from Black Sea and Azov Sea ports, which are in shallow waters and only able to accommodate handysize vessels or coasters.

Colombia54

Russia39

South Africa5

Other2

— Tuik

Turkish thermal coal imports by origins in Jan-Aug 17 %

Colombia50

Russia38

South Africa9

Other3

— Tuik

Turkish thermal coal imports by origins in Jan-Aug 16 %

Turkish thermal coal imports ’000t

Jan-Aug 2017 Jan-Aug 2016 ± 17/16 ±% 17/16

Colombia 10,645 9,398 1,247 13

Russia 7,792 7,141 651 9

South Africa 951 1,738 -787 -45

Other 393 656 -263 -40

Total 19,781 18,933 848 4



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Novorossiysk is a major southern Russian coal-handling port. It can accommodate vessels with a draught of 11-13.4m and a deadweight of 40,000-45,000t.

Higher freight rates have already limited demand for Russian coal cargoes, making their price less competitive on the regional market.

“Sellers offering coal from Rostov, Azov, Yeisk, Temryuk and Taganrog terminals on the spot market might not find any demand in Turkey because prices on cfr Turkey basis are too high,” a trader said.

The NAR 6,000 kcal/kg thermal coal price on fob Black Sea and Azov Sea ports basis was assessed by Argus at $90.63/t on 6 October, which implies a cfr Turkey price of $104-125/t, depending on the seller and port of destination. The maximum acceptable level is currently $98-100/t cfr.

Seasonally high demand for vessels during peak grain exports prompted vessel owners to raise their freight rates in August. And rates kept rising in September-October.

In August-September, Russian Railways (RZD) limited coal shipments to some southern ports to speed up the transport of construction materials and grain.

Unfavourable weather conditions also supported higher freight rates, with vessel owners keen to hedge against pos-sible risks linked to vessel downtime.

Russian ports in the Azov Sea and Black Sea suspended operations from 25 September to 3 October after a storm warning. RZD imposed a number of limitations on coal de-liveries to southern ports to ease rail congestion. All ports resumed operations last week after the weather improved and pressure on ports' infrastructure eased.

Heavy winds on the coasts of the Black Sea and Azov Sea led to lower water levels at ports in September and early October. This disrupted coal exports through shallow Azov Sea ports. But the Kerch strait is expected to be opened to vessels in the next two weeks, according to market participants.

Some shipowners are trying to avoid taking new orders for deliveries from Rostov and Azov, fearing that vessels might face problems passing port after being fully loaded with coal. These ports can currently accommodate vessels with a draught of 3.5m, against the usual 4m. This has most-ly affected exports of anthracite, which is usually shipped in small cargoes and on small vessels.

Azov and Rostov are holding lots of stocks of coal that has been sold, but not yet delivered to consumers, accord-ing to Semen Chudakov, chief operating officer of logistics company Glogos. Medium and small coal suppliers have adopted a wait-and-see approach and have postponed the most imminent shipments. Some coal suppliers that need to ship cargoes shortly have faced "dead freight costs", paying

Coaster freight rates leap at southern Russian portsFreight costs for small bulk carriers on routes from Russia's Azov and Black Sea ports to Turkey rose by almost 300pc on the year in October, reflecting heavy weather conditions and the peak season for grain exports. And rates might stay at the current level until the first half of November, when they could start falling with the end of the grain export season and lower demand for coal from Turkish buyers, according to market participants.

At the start of October, freight rates for 3,000t river-sea vessels from the ports of Rostov and Azov to Turkish ports on the Black Sea and Marmara Sea rose by $6-8/t to $33/t and $36/t, respectively. This is $20/t up on 2016 and $10/t higher than in 2015. Freight rates to the Izmir region were at $38/t in early October, industry sources said. Izmir ports are the shallowest and can accommodate vessels with a draught of around 4m and a deadweight of 5,000-5,800t.

Freight rates from the Azov Sea ports of Taganrog, Yeisk and Temryuk are less than those from Azov and Rostov because of deeper berths, which enable them to handle ves-sels with draughts of 4-5m and allow them to accommodate a larger number of vessel types with a deadweight of up to 10,000t. Freight rates from Taganrog and Yeisk to Turkish Black Sea ports are around $31/t this month and $33-34 for shipments to Marmara ports, market participants said. Freight rates from Temryuk to Turkey are currently $29-33/t, depending on the destination.

Freight rates from the Russian Black Sea port of Novorossiysk to Turkish ports stand at $12-16/t, depending on the vessel and port of destination, market participants say.

More demand for coal in TurkeyIn January-August Turkey increased total thermal coal im-ports by 5pc on the year to 19.78mn t, as receipts in August reached their highest level since November last month — 3.42mn t, which is 54pc or 1.2mn t more than a year earlier, Tuik data show. The growth was a result of higher consump-tion at coal-fired plants.

Coal-fired power output by generators utilising imported coal rose by 12.7pc year-on-year to 5.01TWh in August, a third consecutive monthly rise, according to data from grid operator Teias. And capacity utilisation at coal-fired plants reached 81pc in August, its highest since at least January 2016, based on data provided by the energy ministry and market operator Epias.

Dark spreads, a proxy for coal-fired plant profitability, rose in June-August, encouraging increased output. And Turkish coal burn may continue to rise as the winter heating season approaches.

https://direct.argusmedia.com/newsandanalysis/article/1536183





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Latvian ports boost coal throughputs despite rail cutsThe volume of Russian coal received for export at Latvia's dry bulk terminals has continued to rise on the year, despite restrictions on rail deliveries. Shipments surged by 31pc to nearly 13.1mn t in January-August, port data show, as greater European demand attracted more Russian material.

Two coal terminals in Riga — Strek and Riga Central Terminal — increased Russian coal handling by 5pc to 8.37mn t. Riga handled more than half of the Russian coal shipped through Latvian ports, but growth was not as sharp as at other ports.

Ventspils, which accounted for almost 30pc, more than doubled Russian coal handling to 3.78mn t from 1.76mn t. Two coal terminals operate at Ventspils — Ventspils Commercial Port (VCP) and Baltic Coal Terminal (BCT), which is a joint venture between VCP and Russian producer Zarechnaya.

Russian coal producer SDS-Ugol, which ships through trading arm Mir Trade, is the main Russian coal supplier at Riga, mainly through Riga Central Terminal, and at Ventspils. It accounted for more than half of the Russian rail coal deliveries to Riga in January-August, some 4.71mn t, and also supplied 1.4mn t to Ventspils, about 40pc of the total, Russian rail data show.

for partially loaded vessels, he added. But for large export-ers, the main customers at Azov and Black Sea ports, such disruptions are not critical and are unlikely to cause signifi-cant problems with customers, according to the source.

"Most sales are concluded under long-term contracts with large volumes of coal, so a few 3,000-5,000t vessels stacked in ports will not play a significant role," Chudakov said. Meanwhile, small coal suppliers face a lack of vessels and storage at Russian Azov and Black Sea ports. “According to information received from the terminals, Rostov coal stocks are loaded at 70pc, Yeisk at 65pc, Novorossiysk at 85pc," a source from Novorossiysk Black Sea Forwarding says.

Some suppliers have also struggled with coal deliveries to ports by rail because of a lack of open-top railcars. This has mostly affected minor suppliers, with larger exporters impacted less, market participants say.

Large suppliers are keeping the situation at southern ports under control and shipping coal according to schedule, market participants say. Most exporters were prepared for the pressure on port infrastructure ahead of the deteriorat-ing weather conditions and peak grain export season.

And in any case, some suppliers are usually focused on deliveries from Baltic ports to Europe during the peak grain export season on the Black Sea.

The second-largest coal supplier to Riga was Kuzbassrazrezugol (Kru), with a 25pc share. Kru exports through trading firm Carbo One. Other suppliers to the port were Siberian Anthracite, Vostokugol. Zarechnaya, Siberian Anthracite, Sibuglemet, Kru and Mechel were among the suppliers to Ventspils in January-August.

A small dry bulk terminal at Liepaja, where Ekers Stividors operates, saw Latvia's sharpest rise in Russian coal handling, quadrupling its receipts to 906,000t in January-August. The increase was possible after the facility attracted new Russian supplies last year.

This year, Liepaja started exporting coal to Asia-Pacific. Rail shipments to the port destined for Asia-Pacific totalled 411,000t in January-August, Russian rail data show. About 442,000t was destined for Europe, up from 164,000t in the same period last year.

Anthracite accounted for about 88pc of coal shipments to the port, and thermal coal the rest. Russian anthracite pro-ducer Siberian Anthracite is the largest coal supplier through the terminal. In January-August, it delivered 323,000t to the port by rail, up from 70,000t in the same period last year. Its shipments were destined for Germany this year.

Rail restrictionsRussian coal deliveries to Latvian ports might have been even higher were it not for restrictions imposed by state-run Russian Railways (RZD), which introduced the limits in April, citing maintenance. In April-September, RZD approved just 1mn-1.4mn t/month for shipment to Latvian ports, or 30-55pc of the 2.2mn-3.8mn t/month suppliers had requested.

At the same time, RZD approved more tonnage for shipment to Russia's northwestern ports, where exports rose by 27pc on the year to 36.1mn t in January-August. These outlets were operating at nearly full capacity, while Latvian ports remained heavily underutilised — despite great demand.

And the restrictions continue, with the volume approved for delivery to Latvian ports in October reaching just below 1mn t, or 74pc, of requested deliveries, as of early October. By contrast, RZD approved 4.78mn t, or 96pc, of the 5.1mn t that exporters requested for delivery to Russian northwest-ern ports in October.

Mir Trade, the largest coal exporter through Latvian ports, has been hit hardest. It does not have its own port capacities, unlike other major exporters, such as Carbo One and Suek. Carbo One, the second-largest Russian coal supplier through Latvian ports, has a large coal facility — Rosterminalugol — at the Russian Baltic port of Ust-Luga, and was able to redirect shipments destined for Europe there.





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Mir Trade redirected part of its deliveries from Latvian ports to the Tis terminal at the Ukrainian Black Sea port of Yuzhny, where the company started to ship coal in December. As a result, average monthly rail deliveries to Tis have risen to around 240,000 t/month since May from almost 170,000 t/month in January-April, according to Russian rail data. Mir Trade delivers coal to Turkey through Tis.

Trading giant Trafigura has also been affected by the dif-ficulties with coal deliveries to Latvian ports. It was aiming to ship 200,000 t/month of coal through Ventspils this year, but is no longer able to ship this kind of volume through Latvia, a European trader says.

Rail restrictions have not so far resulted in a year-on-year drop in coal exports through Latvian terminals. But Riga’s terminals expect their coal throughputs to fall next year, although they did not provide details.

SDS-Ugol sells coal assetsRussian coal producer SDS-Ugol has sold its only anthracite subsidiary, Sibenergougol, to trading company Sibugol, which is owned by Switzerland-based Sib Coal.

Sibenergougol operates a number of plots in the Novokuznetskiy and Prokopyevskiy districts of the Kemerovo region with total production capacity of 2.2mn t/yr of anthracite and low-volatile bituminous T-grade thermal coal. Its main producing plot is Bungurskiy Yuzhny. Sibenergougol produced 1.5mn t of coal in the first nine months of this year, almost flat compared with 2016, Russian energy infor-mation agency CDU TEK data show. The company produced 1.97mn t last year, down by 2pc on the year. Sibenergougol will continue to produce coal at the current level, a source close to the company said. SDS-Ugol will compensate for the loss of sold capacities by developing production at its other assets.

SDS-Ugol has exported around 80pc of coal mined by Sibenergougol. It exported most volumes of Sibenergougol's coal to Asia-Pacific last year, mostly to South Korea and

Japan, but this year it has redirected large volumes to Turkey. Sibenergougol’s coal rail dispatches for exports through Ukrainian and Russian Black Sea ports rose by 490,000t on the year to 570,000t in January-August, while shipments through the far eastern ports decreased by 316,000t to 335,000t. Total Sibenergougol rail dispatches for exports were more than 950,000t in January-August, up from almost 880,000t in the same period a year earlier.

SDS-Ugol sold Sibenergougol to reduce its debt burden. Sibenergougol was pledged for a loan to Gazprombank. The company does not disclose the cost of the deal, which took place earlier this month.

SDS-Ugol is considering the possibility of selling Kiselyovskiy opencast to coal company Meltek, which is affiliated with gold mining company UGC. Russian federal anti-monopoly service FAS approved the sale of Kiselyovskiy opencast in September. Kiselyovskiy’s production capacity is 2mn t/yr of bituminous SS-grade thermal coal. Kiselyovskiy opencast produced almost 1.46mn t of coal in January-September, down by 10pc on the year. Kiselyovskiy's output fell by 20pc last year compared with 2015, to around 2mn t, CDU TEK data show.

Southern ports9

Asia-Pacific74

Europe16

Belarus1

— Russian railway data

Sibenergougol’s export in Jan-Aug 2016 %

Southern ports60

Asia-Pacific35

Europe5

— Russian railway data

Sibenergougol’s export in Jan-Aug 2017 %

Russian prices pick up in Asia-PacificSpot Russian prices in Asia-Pacific increased on expecta-tions of a new wave of restocking in the region as winter approaches. The spot price for Russian NAR 6,000 kcal/kg coal delivered into the Asia-Pacific rose by $1/t on the week to $100/t fob Vostochny as Australian values stepped higher, although bookings were few.

A Russian producer has offered coal at around $98/t fob Vanino NAR 6,000 kcal/kg basis, equal to $106.4/t cfr Taiwan under a tender by Taiwanese conglomerate Formosa Plastics. This was $2/t above an offer from an Indonesian supplier that won a tender to supply 240,000t on three Panamax vessels during November-January. Formosa was understood to have booked the coal on a fob basis, as it has its own




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* — monthly average coal price on a fob basis plus freight to ARA, calorific value NAR 6,000 kcal/kg

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cif ARA = 0

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Coal landed cost in Asia-Pacific region* $/t

vessel fleet to ship the material. And the buyer is unlikely to issue new tenders for deliveries by the year's end, a market participant said.

Some other buyers in Asia-Pacific are looking for coal with November-December delivery, although Russian suppli-ers are almost fully booked until the end of the year, Russian exporters said.

The spot price for NAR 5,500 kcal/kg fob Vostochny coal was up by $1.75/t on the week to $87/t despite low sales and national holidays in China on 1-8 October. Russian traders expect Chinese buyers to restart bookings later in October to replenish stocks ahead of the winter.

Freight rates from Russian far eastern ports to major des-tinations in Asia-Pacific decreased by 10-40¢/t on the week on the limited activity. Rates for prompt Panamax deliveries from Russian far eastern port Vostochny's general cargo ter-minal PPK-1 to South Korea and China merged down by 30¢/t on the week to $5.50/t and $6.90/t, respectively. And freight costs to Taiwan and Japan was down by 40¢/t and 20¢/t to $7.10/t and $6/t, respectively. Rates from Vostochny’s spe-cialised coal terminal PPK-3 are about 50¢/t lower compared with PPK-1.

Freight rates from the Russian far eastern port of Vanino to Taiwan and China fell by 30¢/t, reaching $6.20/t and $6.10/t, respectively. And rates to Japan and South Korea were down by 20¢/t to $4.90/t for both destinations. Meanwhile rates for Capesize vessels from Vanino to India lost 10¢/t falling to $7.80/t.

European prices down on low salesSpot prices for Russian coal into Europe fell again on the bearish sentiment on the market. Prices for spot Russian NAR 6,000 kcal/kg cargoes declined by 20¢/t on the week to $86.97/t fob Baltic ports. No assessment-relevant trades were reported.

Traders expect prices to continue falling next week as buyers are unlikely to return with new bookings soon. Most coal consumers avoid purchasing material at current price level with only few in western and northern Europe may take Russian coal at around $86-87/t fob Baltic ports, trad-ers said. Meanwhile buyers in southern Europe, Turkey and North Africa are looking for cheaper material from alterna-tive suppliers, they added.

The freight rate for spot Panamax deliveries from Baltic ports to the Amsterdam-Rotterdam-Antwerp region was at around $7/t, unchanged on the week. Rates from the Russian port of Murmansk to Rotterdam pared last week’s losses to rise by 50¢/t on the week to $6.80/t on 6 October.

The spot price for NAR 6,000 kcal/kg Russian thermal coal fines exported through Ukrainian and Russian Black Sea ports fell by 25¢/t on the week to $90.63/t fob Black Sea amid no new trades in the region.

Latest indicative prices for NAR 6,000 kcal/kg coal to Turkey were at $100/t cfr Marmara, which are too high for local buyers. Some cement producers may announce tenders soon, but mainly not to book coal, but to check the market and possible discounts, market participants said.



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NETBACK PRICES

Northwestern ports, coal NAR 6,000 kcal/kg, 6 October $/t

Riga Ventspils Murmansk Ust-Luga Vysotsk

Price fob Baltic 86.97 86.97 86.97 86.97 86.97

Related expenses 1.20 1.20 1.20 1.20 1.20

Handling cost* 12.31 14.07 8.00 13.50 12.50

Rail tariff in Belаrus, loaded run 3.21 3.21 — — —

Rail tariff in Belаrus, empty return 1.22 1.22 — — —

Rail tariff in Belаrus, total 4.43 4.43 — — —

Rail tariff in Russia, loaded run, Rbs/t** 726.69 726.69 730.37 726.69 726.69

Rail tariff in Russia, empty return, Rbs/t** 447.79 447.79 500.95 447.79 447.79

Rail tariff in Russia, total, Rbs/t** 1,174.49 1,174.49 1,231.32 1,174.49 1,174.49

Rail tariff in Russia, total** 20.40 20.40 21.38 20.40 20.40

Railcar rate, Rbs/t 547.72 563.15 523.41 462.85 464.52

Railcar rate 9.51 9.78 9.09 8.04 8.07

Rail delivery cost, total 34.34 34.61 30.47 28.44 28.47

Netback price, fca Kuzbass 39.12 37.09 47.30 43.83 44.80

Netback price, fca Kuzbass, Rbs/t 2,253.00 2,136.00 2,724.00 2,524.00 2,580.00

*handling cost for Riga and Ventspils includes rail tariff in Latvia; **average tariff from several rail stations in the Kemerovo region

exchange rate €=$1.1, $=57.5811 Rbs

Northwestern ports, coal NAR 6,000 kcal/kg, 6 October $/t

Riga Ventspils Murmansk Ust-Luga Vysotsk

Price fob Baltic 86.97 86.97 86.97 86.97 86.97


Handling cost* 12.31 14.07 8.00 13.50 12.50

Rail tariff in Belarus, loaded run 3.21 3.21 — — —

Rail tariff in Belarus, empty return 1.22 1.22 — — —

Rail tariff in Belarus, total 4.43 4.43 — — —

Rail tariff in Russia, loaded run, Rbs/t** 732.63 732.63 740.50 732.63 729.83

Rail tariff in Russia, empty return, Rbs/t** 476.22 476.22 526.30 476.22 479.92

Rail tariff in Russia, total, Rbs/t** 1,208.85 1,208.85 1,266.79 1,208.85 1,209.76

Rail tariff in Russia, total** 20.99 20.99 22.00 20.99 21.01


Railcar rate 10.11 10.38 9.69 8.64 8.67


Netback price, fca Khakassia 37.93 35.90 46.08 42.64 43.59

Netback price, fca Khakassia, Rbs/t 2,184.00 2,067.00 2,653.00 2,455.00 2,510.00

*handling cost for Riga and Ventspils includes rail tariff in Latvia; **average tariff from several rail stations in Khakassia




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NETBACK PRICES

Far eastern ports, coal NAR 6,000 kcal/kg, 6 October $/t

Vostochny Port VUT Evraz NCSP Astafyeva Vanino CSP

Price fob Vostochny Port 100.00 100.00 100.00 100.00 100.00


Handling cost 13.70 11.80 11.00 14.00 11.50

Rail tariff, loaded run, Rbs/t* 797.55 797.55 788.52 788.52 748.97

Rail tariff, empty return, Rbs/t* 588.75 588.75 578.86 578.86 535.58


Rail delivery cost, total, Rbs/t 2,013.16 2,013.16 1,992.63 1,992.63 1,852.38




*average tariff from several rail stations in the Kemerovo region






Handling cost 13.70 11.80 11.00 14.00 11.50








*average tariff from several rail stations in the Kemerovo region




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NETBACK PRICES





Handling cost 13.70 11.80 11.00 14.00 11.50








*average tariff from several rail stations in Khakassia






Handling cost 13.70 11.80 11.00 14.00 11.50












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NETBACK PRICES

Southern ports, coal NAR 6,000 kcal/kg, 6 October $/t

Novorossiysk Tuapse Rostov-on-Don Temryuk**

Price fob Black sea 90.63 90.63 90.63 90.63

Related expenses 1.20 1.20 1.20 1.20

Handling cost 14.25 14.30 8.00 10.00

Rail tariff, loaded run, Rbs/t* 727.87 730.76 726.69 727.87

Rail tariff, empty return, Rbs/t* 471.16 478.69 447.79 471.16

Railcar rate, Rbs/t 488.13 496.44 462.91 492.60

Rail delivery cost, total, Rbs/t 1,687.16 1,705.89 1,637.39 1,691.63

Rail delivery cost, total 29.30 29.63 28.44 29.38

Netback price, fca Kuzbass 45.88 45.50 52.99 50.05

Netback price, fca Kuzbass, Rbs/t 2,642.00 2,620.00 3,051.00 2,882.00

*average tariff from several rail stations in the Kemerovo region;**in case of road loading handling cost totals $24/t


Southern ports, coal NAR 6,000 kcal/kg, 6 October $/t

Novorossiysk Tuapse Rostov-on-Don

Price fob Black sea 90.63 90.63 90.63

Related expenses 1.20 1.20 1.20

Handling cost 14.25 14.30 8.00

Rail tariff, loaded run, Rbs/t* 733.25 730.22 728.43

Rail tariff, empty return, Rbs/t* 504.04 511.46 481.77

Railcar rate, Rbs/t 528.93 537.31 503.68

Rail delivery cost, total, Rbs/t 1,766.22 1,778.99 1,713.88

Rail delivery cost, total 30.67 30.90 29.76

Netback price, fca Khakassia 44.51 44.23 51.67

Netback price, fca Khakassia, Rbs/t 2,563.00 2,547.00 2,975.00





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NETBACK PRICES

Kazakhstan coal NAR 5,500 kcal/kg via Ust-Luga, weekly, 6 October $/t

Ust-Luga (spot) Ust-Luga (forward month+2) Ust-Luga (forward year+1)

cif ARA NAR 6,000 kcal 91.99 88.41 79.91

De-escalation 7.67 7.37 6.66

Quality discount 3.25 3.25 3.25

Freight Ust-Luga — ARA 7.00 7.00 7.00

Price fob port NAR 5,500 kcal/kg 74.08 70.79 63.00

Related expenses 1.20 1.20 1.20

Handling cost 13.50 13.50 13.50

Rail tariff in Russia, loaded run, Rbs/t 672.34 672.34 672.34

Rail tariff in Russia, empty return, Rbs/t 359.50 359.50 359.50

Rail tariff in Russia, total, Rbs/t 1,031.84 1,031.84 1,031.84

Rail tariff in Russia 17.85 17.85 17.85

Rail tariff in Kazakhstan loaded run, tenge/t 871.90 871.90 871.90

Rail tariff in Kazakhstan, empty return, tenge/t 330.10 330.10 330.10

Rail tariff in Kazakhstan, total, tenge/t 1,202.00 1,202.00 1,202.00

Rail tariff in Kazakhstan, total 3.51 3.51 3.51

Railcar rate 12.62 12.62 12.62

Rail delivery cost, total 33.97 33.97 33.97

Netback price, fca Shubarkol 25.40 22.12 14.33

Kazakhstan coal NAR 5,500 kcal/kg via far eastern ports, 6 October $/t

Vostochny Port Vanino CSP

Price fob port 87.00 87.00

Related expenses 1.20 1.20

Handling cost 13.70 11.50

Rail tariff in Russia, loaded run, Rbs/t 868.90 826.07

Rail tariff in Russia, empty return, Rbs/t 655.47 608.32

Rail tariff in Russia, total, Rbs/t 1,524.37 1,434.39

Rail tariff in Russia 26.47 24.91

Rail tariff in Kazakhstan loaded run, tenge/t 1,292.18 1,292.18

Rail tariff in Kazakhstan, empty return, tenge/t 537.72 537.72

Rail tariff in Kazakhstan, total, tenge/t 1,829.90 1,829.90

Rail tariff in Kazakhstan, total 5.30 5.30

Railcar rate 24.68 22.98

Rail delivery cost, total 56.45 53.19

Netback price, fca Shubarkol 15.65 21.11



of 30

Coal production in Russia (preliminary data) ’000t

Sep 17 ±% 17/16 Jan-Sep 17 ±% 17/16

Total 34,600.8 8.8 297,753.3 13.1

Suek, including subsidiaries in:

Kemerovo region 3,051.6 -14.7 29,048.2 -1.6

Krasnoyarsk region 2,149.1 40.0 18,893.6 0.5

Khakassia 995.6 -15.6 9,534.7 -4.8

Zabaikalsky krai 1,549.8 21.1 13,546.3 -0.1

Primorsky region 371.8 93.6 2,162.6 -3.2

Khabarovsk region 480.6 16.2 4,670.4 1.2

Suek total 8,598.5 5.2 77,855.8 -1.2

Kuzbassrazrezugol (Kru) 4,047.1 4.5 34,830.2 4.7

Mechel:

Yuzhny Kuzbass 756.3 7.3 6,263.4 -5.9

Yakutugol 686.9 -11.7 6,403.5 -15.0

Elgaugol 370.6 16.7 3,057.1 7.2

Mechel total 1,813.8 0.7 15,724.0 -7.8

Evraz:

Yuzhkuzbassugol 1,019.3 7.4 8,317.0 -2.2

Raspadskaya 835.8 11.9 8,561.8 18.1

Evraz total 1,855.1 9.4 16,878.8 7.2

Vostsibugol, including subsidiaries in:

Irkutsk region 994.0 10.0 7,953.2 5.5

Krasnoyarsk region 208.9 -10.0 1,810.7 -0.7

Vostsibugol total 1,202.9 5.9 9,763.9 4.3

Russian Coal, including subsidiaries in:

Krasnoyarsk region 561.9 -6.6 4,451.5 13.1

Khakassia 350.0 17.4 3,070.6 0.4

Amur region 313.5 -4.0 2,375.2 0.7

Russian Coal total 1,225.4 96.2 9,897.3 82.7

Severstal (Vorkutaugol) 707.1 42.2 6,731.7 -9.4

Sibirsky Delovoy Soyuz (SDS) 2,327.3 -9.5 21,703.4 3.5

Sibuglemet 1,051.8 11.3 8,609.3 3.1

Taldinskaya 477.9 234.2 3,575.0 61.5

Taltek 339.8 18.5 2,840.1 15.2

MMK-Ugol (Belon) 256.2 -22.4 2,445.5 -0.6

Zarechnaya 138.9 -67.7 1,609.9 -55.3

Stroyservis 940.4 16.5 7,515.4 26.9

Inskoy 154.5 na 888.1 2,268.3

Bungursky-Severny opencast 177.0 21.9 1,520.8 18.5

Arshanovsky opencast 311.9 49.2 2,474.2 42.5

Siberian Anthracite 651.5 23.9 5,217.3 46.8

Kuznetskinveststroy 74.2 -41.1 905.4 -13.3

Kolmar 357.0 47.0 2,987.8 12.8

Kuzbasskaya Toplivnaya Kompaniya (KTK) 1,030.1 14.3 9,390.6 9.7

Karakansky-Zapadny opencast 387.2 3.5 3,214.6 7.0

Kiyzassky opencast 724.5 11.9 7,029.2 26.6

Others 5,750.7 23.1 44,145.0 46.7

— CDU TEK, Argus estimates



of 30

Planned rail shipments of Russian coal for export ’000t

Oct 2017 Sep 2017 ± Oct/Sep ±% Oct/Sep

Northwestern portsNorthwestern ports of RussiaKaliningrad 107.0 84.5 22.5 26.7Kandalaksha 127.5 200.7 -73.2 -36.4Murmansk 1,429.1 1,263.2 166.0 13.1Ust-Luga 2,647.6 2,488.2 159.3 6.4Vysotsk 437.4 437.5 -0.1 0.0Vyborg 84.9 84.9 0.0 0.0Arkhangelsk 41.1 35.8 5.3 14.7St Petersburg 1.0 0.0 na naTotal northwestern ports of Russia 4,875.6 4,594.7 280.9 6.1Ports of Baltic countriesLiepaja 9.1 16.3 -7.2 -44.3Riga 810.3 807.8 2.5 0.3Ventspils 174.6 182.6 -8.0 -4.4Total ports of Baltic countries 994.0 1,006.7 -12.7 -1.3Total northwestern ports 5,869.6 5,601.4 268.2 4.8Southern portsSouthern ports of RussiaAzov 42.9 117.7 -74.8 -63.6Kavkaz 85.7 85.0 0.7 0.8Novorossiysk 241.0 245.9 -4.9 -2.0Rostov-on-Don 87.1 91.3 -4.2 -4.6Taganrog 58.2 75.0 -16.8 -22.4Temryuk 93.2 99.7 -6.4 -6.5Tuapse 281.0 283.7 -2.7 -1.0Yeysk 97.8 134.4 -36.7 -27.3Ust-Donetsk 0.0 0.0 na naTotal southern ports of Russia 986.9 1,132.7 -145.8 -12.9Ports of UkraineIzmail 129.9 71.1 58.8 82.7Mykolaiv 110.0 128.4 -18.4 -14.3Yuzhny 211.4 98.8 112.6 113.9Reni 395.4 368.6 26.8 7.3Total ports of Ukraine 846.7 666.9 179.8 27.0Total southern ports 1,833.5 1,799.6 33.9 1.9Far eastern portsNakhodka 1,353.5 1,315.9 37.6 2.9Posyet 658.7 620.0 38.7 6.2Vanino 2,174.3 2,101.7 72.7 3.5Vladivostok 250.8 241.6 9.2 3.8Vostochny 2,891.7 2,785.3 106.4 3.8Sovetskaya Gavan 10.4 10.1 0.3 3.3Total far eastern ports 7,339.4 7,074.5 265.0 3.7Total ports 15,042.6 14,475.5 567.1 3.9Overland border crossingsEastern EuropeCzech Republic 10.9 10.0 0.9 9.4Hungary 17.3 16.6 0.7 4.0Poland 1,311.6 1,035.8 275.8 26.6Romania 0.9 1.2 -0.3 -24.0Slovakia^ 186.6 156.0 30.6 19.6Total eastern Europe 1,527.2 1,219.5 307.7 25.2FSUBelarus 101.8 53.7 48.1 89.5Estonia 0.0 0.0 na naGeorgia 72.7 100.6 -27.9 -27.7Kazakhstan 9.2 11.9 -2.8 -23.1Latvia 2.0 5.3 -3.3 -61.9Lithuania 19.1 35.5 -16.4 -46.2Moldova 1.1 17.6 -16.4 -93.5Ukraine 1,110.5 1,155.6 -45.1 -3.9Total FSU 1,316.5 1,380.2 -63.8 -4.6North Korea 253.6 224.9 28.7 12.8China 1,070.3 1,027.7 42.7 4.2Finland 104.4 184.4 -80.0 -43.4Total overland border crossings 4,272.1 4,036.8 235.3 5.8Grand total 19,314.7 18,512.3 802.4 4.3^Including transit to Czech Republic



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Planned rail shipments of coal to ports and border crossing, Oct 17 ’000t

Destination/Sender Coal grade Point of loading Region of loading Volume

Northwestern ports

Murmansk

Suek-Kuzbass (Suek) Hard coal D Terentyevskaya Kemerovo region 731.6

Suek-Kuzbass (Suek) Hard coal D Yerunakovo Kemerovo region 292.6

Suek-Kuzbass (Suek) Hard coal G Baykaim Kemerovo region 66.1

Suek-Kuzbass (Suek) Hard coal G Leninsk-Kuznetskу 1 Kemerovo region 75.5

Suek-Khakassia (Suek) Hard coal D Chernogorskiye Kopi Khakassia 65.8

Total Suek 1,231.6

Kuzbassrazrezugol Hard coal SS Latyshi Kemerovo region 14.1

Kuzbassrazrezugol Hard coal T Sarbala Kemerovo region 37.6

Kuzbassrazrezugol Hard coal T Tyrgan Kemerovo region 14.1

Total Kuzbassrazrezugol 65.8

Topprom Hard coal T Cherkasov Kamen Kemerovo region 14.1

Russian Coal Hard coal G Sayanskaya Krasnoyarsk region 18.0

Promugolservis (Resurs) Hard coal D Yerunakovo Kemerovo region 54.6

Kuzbass engineering company (Coeclerici) Hard coal T Kaltan Kemerovo region 45.0

Total Murmansk 1,429.1

Vysotsk

SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal D Meret Kemerovo region 94.0

SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal D Terentyevskaya Kemerovo region 51.7

SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal D Yerunakovo Kemerovo region 103.4

SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal SS Zaboyschik Kemerovo region 14.1

Total Sibirsky Delovoy Soyuz 263.2

Kuzbassrazrezugol Hard coal D Belovo Kemerovo region 9.4

Kuzbassrazrezugol Hard coal D Leninsk-Kuznetsky 2 Kemerovo region 23.5

Kuzbassrazrezugol Hard coal D Yerunakovo Kemerovo region 94.0


Inskoy Hard coal D Meret Kemerovo region 47.3

Total Vysotsk 437.4

Ust-Luga

Taldinskaya Treydingovaya companiya (Taldin-skaya) Hard coal D Yerunakovo Kemerovo region 37.6

Taldinskaya Treydingovaya companiya (Taldin-skaya) Hard coal G Yerunakovo Kemerovo region 308.9

Total Taldinskaya 346.5



Total Suek 136.9


Promugolservis (Resurs) Hard coal G Yerunakovo Kemerovo region 53.2

Total Resurs 122.4

Kuzbassrazrezugol Concentrate Tyrgan Kemerovo region 74.0




Kuzbassrazrezugol Hard coal G Yerunakovo Kemerovo region 68.8

Kuzbassrazrezugol Hard coal SS Bochaty Kemerovo region 37.6


Kuzbassrazrezugol Hard coal SS Tyrgan Kemerovo region 24.9

^Including transit to Czech Republic



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Kuzbassrazrezugol Hard coal T Malinovka Kemerovo region 30.0


Raspadskaya coal company (Evraz Group) Concentrate Mezhdurechensk Kemerovo region 70.4

Raspadskaya coal company (Evraz Group) Hard coal G Mezhdurechensk Kemerovo region 32.8

Raspadskaya coal company (Evraz Group) Hard coal G Yerunakovo Kemerovo region 100.0

Total Evraz Group 203.2

Sayanpromtrans (Arshanovsky opencast) Hard coal D Abakan Khakassia 54.7

Sayanpromtrans (Arshanovsky opencast) Hard coal D Tasheba Khakassia 33.1

Total Arshanovsky opencast 87.8

Topprom Hard coal D Polosukhino Kemerovo region 32.9

Topprom Hard coal SS Prokopyevsk Kemerovo region 136.3


Topprom Hard coal T Prokopyevsk Kemerovo region 9.4

Total Topprom 202.1

Zarechnaya mine (Zarechnaya) Hard coal G Proektnaya Kemerovo region 14.1

Zadubrovsky Novy opencast Hard coal D Meret Kemerovo region 42.3

Trudarmeysky opencast (Nordal) Hard coal D Trudarmeyskaya Kemerovo region 10.0

Trans line Hard coal SS Krasny Kamen Kemerovo region 9.0

Stepanovsky opencast (Meltek) Hard coal T Abagur-Lesnoy Kemerovo region 18.8

Russian Coal Hard coal G Sayanskaya Krasnoyarsk region 36.0

PGK (Freight One) Anthracite Evsino Novosibirsk region 70.5

Oktyabrinsky opencast Hard coal SS Krasny Kamen Kemerovo region 16.0

Mayrykhsky opencast (Tsentruglesbyt) Hard coal D Kamyshta Khakassia 40.1

Kuzbasskaya Toplivnaya Kompaniya (KTK) Hard coal D Meret Kemerovo region 120.3

Kiyzassky opencast (VostokUgol) Hard coal T Myski Kemerovo region 202.1


Cherkasovskaya washing plant Hard coal SS Cherkasov Kamen Kemerovo region 60.0

Bungurskу-Severny opencast Hard coal T Novokuznetsk-sort. Kemerovo region 70.0

Belkommerts (Karakan Invest) Hard coal D Meret Kemerovo region 30.0

No data Hard coal D Terentyevskaya Kemerovo region 52.0

No data Hard coal SS Kaltan Kemerovo region 20.0

No data Hard coal T Abagur-Lesnoy Kemerovo region 10.0

No data Hard coal T Kaltan Kemerovo region 20.0

No data Hard coal T Novokuznetsk-sort. Kemerovo region 5.0

Total Ust-Luga 2,647.6

Vyborg



Total Suek 66.1


Total Vyborg 84.9

Kaliningrad

Siberian Anthracite Anthracite Linevo Novosibirsk region 51.5

Novosibirsk electrode plant (Siberian Anthra-cite) Other hard coal Linevo Novosibirsk region 1.4

Total Siberian Anthracite 52.9

Yuzhny Kuzbass (Mechel) Anthracite Kiyzak Kemerovo region 26.7

Russian Coal Hard coal D Chernogorskiye Kopi Khakassia 0.8





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Kaliningrad (Dzerzhinskaya-Novaya-Exp.)


Total Kaliningrad 107.0

Kandalaksha

Taltek Hard coal D Yerunakovo Kemerovo region 57.5

Taltek Hard coal G Yerunakovo Kemerovo region 70.0

Total Taltek 127.5

Total Kandalaksha 127.5

Arkhangelsk


Yuzhny Kuzbass (Mechel) Hard coal T Myski Kemerovo region 12.6

Total Mechel 41.1

Total Arkhangelsk 41.1

St Petersburg (Predportovaya-Exp.)


Total northwestern ports of Russia 4,875.6

Ports of Baltic countries

Riga


Riga (Krasta)




SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal G Prokopyevsk Kemerovo region 134.1

SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal SS Prokopyevsk Kemerovo region 15.6

SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal SS Uglerod Kemerovo region 105.4







Total Riga 810.3

Ventspils








Total Ventspils 174.6




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Liepaja



Total Liepaja 9.1

Total ports of Baltic countries 994.0

Total northwestern ports 5,869.6

Far eastern ports

Vostochny

Tugnuysky opencast (Suek) Hard coal D Chelutay Buryatia 210.5






Total Suek 450.2




SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal T Novokuznetsk-sort. Kemerovo region 24.7




Total Resurs 72.1





Kuzbassrazrezugol Hard coal G Yerunakovo Kemerovo region 58.0








Ziminskaya coal company Hard coal D Zalari Irkutsk region 16.1



Sibir plus Coal middlings Minusinsk Krasnoyarsk region 24.1




Permyakovsky opencast (Stroyservis) Hard coal D Belovo Kemerovo region 47.1

Mezhdurechye (Sibuglemet) Anthracite Kiyzak Kemerovo region 53.4




Cherkasovskaya washing plant Hard coal G Cherkasov Kamen Kemerovo region 32.2


No data Hard coal D Voyennyy Gorodok Irkutsk region 16.1

No data Hard coal G Batareinaya Irkutsk region 24.2

No data Hard coal G Minusinsk Krasnoyarsk region 17.8

No data Hard coal G Polovina Irkutsk region 1.6




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No data Hard coal T Abagur-Lesnoy Kemerovo region 36.2


No data Hard coal T Prokopyevsk Kemerovo region 14.5

Total Vostochny 2,891.7

Nakhodka

Mezhdurechye (Sibuglemet) Hard coal T Kiyzak Kemerovo region 76.1

Mezhdurechye (Sibuglemet) Hard coal T Myski Kemerovo region 33.3

Antonovskaya washing plant (Sibuglemet) Concentrate Bardino Kemerovo region 46.8

Total Sibuglemet 156.1




Topprom Concentrate Polosukhino Kemerovo region 47.2


Total Topprom 61.4

Sibir plus Hard coal Zh Abakan Khakassia 28.9

Sibir plus Hard coal Zh Minusinsk Krasnoyarsk region 20.2

Total Sibir plus 49.0


Sayanpromtrans (Arshanovsky opencast) Hard coal D Kamyshta Khakassia 12.6



Kuzbass engineering company (Coeclerici) Hard coal T Kaltan Kemerovo region 23.4



Beryozovsky opencast (Stroyservis) Hard coal T Spichenkovo Kemerovo region 54.4

Nakhodka (Rybniki)

Kolmar sales and logistic (Kolmar) Coking coal K Denisovski Yakutia 46.4

Kolmar sales and logistic (Kolmar) Coking coal K Chulbass Yakutia 30.9

Total Kolmar 77.3

Total Nakhodka 1,353.5

Posyet


Yuzhny Kuzbass (Mechel) Concentrate Mezhdurechensk Kemerovo region 161.5

Yuzhny Kuzbass (Mechel) Concentrate Tomusinskaya Kemerovo region 346.5

Yakutugol (Mechel) Concentrate Neryungri Yakutia 92.6

Elgaugol (Mechel) Concentrate Verkhnezeysk Amur region 31.0

Total Mechel 658.7

Total Posyet 658.7

Vanino

Vostochno-Beysky opencast (Suek) Hard coal D Tasheba Khakassia 39.8

Urgalugol (Suek) Hard coal G Chegdomyn Khabarovsk region 350.0


Suek-Kuzbass (Suek) Hard coal D Leninsk-Kuznetsky 2 Kemerovo region 169.4



Suek-Kuzbass (Suek) Hard coal G Leninsk-Kuznetsky 2 Kemerovo region 28.8


Suek-Krasnoyarsk (Suek) Brown coal Zaozernaya Krasnoyarsk region 123.8


Arkticheskiye razrabotki (Suek) Hard coal SS Novaya Chara Zabaikalsky krai 26.4

Total Suek 1,588.3




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Yakutugol (Mechel) Coal middlings Neryungri Yakutia 41.3

Yakutugol (Mechel) Hard coal SS Neryungri Yakutia 12.4

Elgaugol (Mechel) Furnace-charge Verkhnezeysk Amur region 54.3

Elgaugol (Mechel) Hard coal G Verkhnezeysk Amur region 4.2

Total Mechel 266.2

Yumiks Hard coal D Sukhovskaya Irkutsk region 25.6

Vostsibugol (En+ Group) Hard coal D Kasyanovka Irkutsk region 29.4



Promregion Hard coal D Cheremkhovo Irkutsk region 26.4


No data Hard coal G Minusinsk Krasnoyarsk region 21.7

Total Vanino 2,174.3

Vladivostok (Mys Churkin)



No data Hard coal T Tyrgan Kemerovo region 18.6

Vladivostok


Total Vladivostok 250.8

Sovetskaya Gavan


Total far eastern ports 7,339.4

Southern ports

Southern ports of Russia

Tuapse


Kuzbassrazrezugol Hard coal SS Cherkasov Kamen Kemerovo region 15.0


Kuzbassrazrezugol Hard coal SS Razrez Kemerovo region 30.6





Total Tuapse 281.0

Azov

Shestaki opencast (Stroyservis) Hard coal SS Razrez Kemerovo region 4.7


Barzasskoye tovarischestvo (Stroyservis) Hard coal SS Biryulinskaya Kemerovo region 5.0

Total Stroyservis 14.4


Mezhdurechye (Sibuglemet) Hard coal SS Kiyzak Kemerovo region 5.0


Total Azov 42.9




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Yeysk


Taganrog







Total Taganrog 58.2

Rostov-on-Don

RZD Anthracite Gukovo Rostov region 65.0

RZD Anthracite Uspenskaya Voronezh region 22.1

Total RZD 87.1

Total Rostov-on-Don 87.1

Temryuk









Total Mechel 14.0

Invest-Uglesbyt Hard coal G Cherkasov Kamen Kemerovo region 6.0

Invest-Uglesbyt Hard coal SS Cherkasov Kamen Kemerovo region 3.0

Total Invest-Uglesbyt 9.0

Total Temryuk 93.2

Novorossiysk






Mezhdurechye (Sibuglemet) Hard coal SS Kiyzak Kemerovo region 5.0




Kuzbassrazrezugol Hard coal SS Cherkasov Kamen Kemerovo region 19.0










Obukhovskaya mine (DTEK) Anthracite Zverevskaya Rostov region 13.2




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Alfa Anthracite Sulin Rostov region 4.5

AIR Anthracite Sulin Rostov region 3.0

Total Novorossiysk 241.0

Kavkaz






Total Kavkaz 85.7

Total southern ports of Russia 986.9

Ports of Ukraine

Yuzhny (Chernomorskaya)





SDS-Ugol (Sibirsky Delovoy Soyuz) Hard coal T Novokuznetsk-sort. Kemerovo region 75.0


Total Yuzhny 211.4

Mykolaiv






Mykolaiv (Zhovtnevaya-Exp.)

Yuzhtrans Anthracite Gukovo Rostov region 12.0

Yuzhtrans Anthracite Chapaevka-Rostovskaya Rostov region 4.5

Total Yuzhtrans 16.5

Total Mykolaiv 110.0

Reni (Reni-Port-Exp.)

RTL (Meltek) Hard coal T Zenkovo Kemerovo region 10.0


Total Meltek 20.0



Kuzbassrazrezugol Hard coal T Malinovka Kemerovo region 50.0



Total Reni 395.4

Izmail



Total Suek 27.8






of 30










Total Izmail 129.9

Total ports of Ukraine 846.7

Total southern ports 1,833.5

Total ports 15,042.6

Overland border crossings

Eastern Europe

Poland (Brest)

Vostochno-Beysky opencast (Suek) Hard coal D Kamyshta Khakassia 10.0




Total Suek 80.3


Novosibirsk electrode plant (Siberian Anthra-cite) Anthracite Linevo Novosibirsk region 0.7

Total Siberian Anthracite 3.5

RZD Anthracite Gukovo Rostov region 2.6


Total RZD 10.5






Sibugol Brown coal Uzhur Krasnoyarsk region 2.7



Promtrassnab Hard coal D Baykaim Kemerovo region 3.7





AIR Anthracite Nesvetay Rostov region 20.0

No data Anthracite Zamchalovo Rostov region 0.7

No data Hard coal D Abakan Khakassia 1.0

No data Hard coal D Belovo Kemerovo region 21.1


Poland (Bruzgi)





Total Suek 109.4







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Prokopyevskaya mining and processing plant Hard coal D Prokopyevsk Kemerovo region 4.7




Poland (Izov)




Total Suek 28.6








Novosibirsk electrode plant (Siberian Anthra-cite) Other hard coal Linevo Novosibirsk region 0.1



No data Hard coal D Belovo Kemerovo region 3.1


Poland (Mamonovo)





Promtrassnab Hard coal D Baykaim Kemerovo region 0.3






Poland (Svisloch)







Poland



Poland (Rava-Russkaya-Exp. na Verhratu)



Total Poland 1,311.6




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Romania (Dyakovo)


No data Anthracite Novomikhailovskaya Rostov region 0.7

Total Romania 0.9

Slovakia^ (Uzhgorod)

Mezhdurechye (Sibuglemet) Hard coal SS Myski Kemerovo region 5.0






Raspadskaya coal company (Evraz Group) Concentrate Obnorskaya Kemerovo region 4.7



Trudarmeysky opencast (Nordal) Hard coal T Trudarmeyskaya Kemerovo region 20.0




Russian Coal Brown coal Kilchug Krasnoyarsk region 10.0





Slovakia^ (Chop)



Total Slovakia^ 186.6

Czech Republic (Chop)




Total Czech Republic 10.9

Hungary (Batevo)





Satelit Hard coal D Chernogorskiye Kopi Khakassia 1.0


No data Brown coal Dubinino Krasnoyarsk region 0.7

Total Hungary 17.3

Total eastern Europe 1,527.2

FSU

Belarus


Mezhdurechye (Sibuglemet) Hard coal T Myski Kemerovo region 5.0



Uglemet (Mechel) Anthracite Nesvetay Rostov region 0.1




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Granula Granulated coal Egozovo Kemerovo region 0.1


No data Granulated coal Egozovo Kemerovo region 0.1

Belarus (Brest-Severny)



Belarus (Polotsk)


Total Belarus 101.9

Georgia




Georgia (Ochamchire)



Sayanpromtrans (Arshanovsky opencast) Hard coal D Podsiny Khakassia 10.0


TransGroup Hard coal T Obnorskaya Kemerovo region 5.0


Oktyabrinsky opencast Hard coal SS Krasny Kamen Kemerovo region 10.1

Total Georgia 72.7

Kazakhstan




Total Kazakhstan 9.2

Latvia


Moldova



Total Moldova 1.1

Lithuania (Ionava)


Lithuania (Kayshyadoris)


Lithuania (Pagegyay)


Lithuania



Total Suek 6.5









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Total Lithuania 19.1

Ukraine (Izmail)


Ukraine (Nikopol)



Ukraine (Predatochnaya)


Ukraine

SDS-Ugol (Sibirsky Delovoy Soyuz) Anthracite Novokuznetsk-sort. Kemerovo region 20.0



Kuzbassrazrezugol Concentrate Bochaty Kemerovo region 18.8





Raspadskaya coal company (Evraz Group) Concentrate Novokuznetsk-sev. Kemerovo region 46.9



Evraz ZSMK (Evraz Group) Concentrate Novokuznetsk-sev. Kemerovo region 19.8




Total Yuzhtrans 20.4


Topprom Hard coal G Cherkasov Kamen Kemerovo region 28.2

Topprom Hard coal G Polosukhino Kemerovo region 37.6

Total Topprom 84.6

Yakutugol (Mechel) Concentrate Neryungri Yakutia 2.9


Taldinskaya Treydingovaya companiya (Taldin-skaya) Hard coal G Yerunakovo Kemerovo region 32.6

Sibir plus Hard coal Zh Minusinsk Krasnoyarsk region 10.0




Beryozovsky opencast (Stroyservis) Concentrate Spichenkovo Kemerovo region 18.6

No data Anthracite Nesvetay Rostov region 1.0


No data Concentrate Cherkasov Kamen Kemerovo region 42.0

No data Concentrate Zaboyschik Kemerovo region 32.6

Ukraine (Vygoda)


Ukraine (Belgorod-Dnestrovsky)


Ukraine (Sarata)


Ukraine (Artsyz)


Ukraine (Pervomaysk-on-Bug)




of 30




Ukraine (Novoukrainka)


Ukraine (Pomoshnaya)


Ukraine (Snigirevka)


Ukraine (Kalanchak)


Ukraine (Viska)


Ukraine (Zolochev)


Ukraine (Novoalekseevka)


Ukraine (Akimovka)


Ukraine (Novoveselaya)


Ukraine (Gusarovka)


Ukraine (Odessa-Tovarnaya)


Ukraine (Zatishye)


Ukraine (Kramatorsk)

Donskoy Ugol Anthracite Bozhkovskaya Rostov region 20.3

Ukraine (Yaroshenka)


Ukraine (Vendichany)


Ukraine (Kotyuzhany)


Ukraine (Kamenets-Podolskiy)


Ukraine (Gnivan)


Ukraine (Vinnitsa)


Ukraine (Hust)


Ukraine (Tyachevo)


Ukraine (Galich)


Ukraine (Kotlabukh)


Ukraine (Vradiyevka)


Ukraine (Popelyukhi)


Ukraine (Kryzhopol)


Ukraine (Gayvoron)




of 30




Ukraine (Serogozy)


Ukraine (Vstrechny)


Ukraine (Sinelnikovo 2)

AIR Anthracite Nesvetay Rostov region 3.0

Ukraine (Pavlograd 1)


Ukraine (Genichesk)


Ukraine (Kozhushko A.M.)


Total Ukraine 1,110.5

Total FSU 1,316.6

China (Grodekovo)



Total Russian Coal 23.3

Kolmar sales and logistic (Kolmar) Coking coal K Chulbass Yakutia 11.5

Kolmar sales and logistic (Kolmar) Hard coal SS Chulbass Yakutia 19.2

Total Kolmar 30.6


Vostsibugol (En+ Group) Hard coal SS Ust-Ilimsk Irkutsk region 0.6

Irbeiski opencast (En+ Group) Brown coal Irbeiskaya Krasnoyarsk region 6.8

Total En+ Group 15.7



Total Topprom 27.6









Palladium-Oil Hard coal D Leninsk-Kuznetskу 1 Kemerovo region 3.9


Gramoteinskaya mine Hard coal D Meret Kemerovo region 51.5

Barzasskoye tovarischestvo (Stroyservis) Concentrate Biryulinskaya Kemerovo region 11.1

No data Hard coal D Nizhneudinsk Irkutsk region 1.8

No data Hard coal D Golenki Primorsky region 10.2

No data Hard coal G Abaza Khakassia 8.0


China (Zabaykalsk)



Total Suek 221.9

Vostsibugol (En+ Group) Hard coal D Cheremkhovo Irkutsk region 6.0


Razrezugol (En+ Group) Hard coal D Petrovsky Zavod Zabaikalsky krai 17.6

Total En+ Group 42.5




of 30



Severny Hard coal D Cheremkhovo Irkutsk region 2.6

Severny Hard coal D Kitoy-Kombinatskaya Irkutsk region 15.3

Total Severny 17.9

Ziminskaya coal company Hard coal D Zalari Irkutsk region 5.7



PPGHO (Priargunskoye Mining and Chemical Works) (ARMZ Uranium Holding) Brown coal Krasnokamensk Zabaikalsky krai 188.6

Gramoteinskaya mine Hard coal D Meret Kemerovo region 13.9

Bukachachinsky izvestnyak Brown coal Zhipkhegen Zabaikalsky krai 12.2

Barzasskoye tovarischestvo (Stroyservis) Concentrate Biryulinskaya Kemerovo region 5.1

No data Hard coal D Petrovsky Zavod Zabaikalsky krai 20.0

No data Hard coal D Nizhneudinsk Irkutsk region 43.7

No data Hard coal D Polovina Irkutsk region 1.6

No data Hard coal D Bukachacha Zabaikalsky krai 10.6

China (Makhalino/Kamyshovaya)



Total Suek 20.6



Total Russian Coal 31.9










Kolmar sales and logistic (Kolmar) Hard coal SS Chulbass Yakutia 11.6


Total China 1,070.3

North Korea (Khasan)





Total Suek 217.6

No data Brown coal Novoshakhtinskaya Primorsky region 36.0

Total North Korea 253.6

Finland (Buslovskaya)



Total Finland 104.4

Total overland border crossings 4,272.2

Grand total 19,314.8


Argus Russian Coal

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Coal

Issue 17-36 | Monday 9 october 2017

PublisherAdrian Binks

Chief operating officerMatthew Burkley

Global compliance officerJeffrey Amos

Commercial managerJo Loudiadis

EditorSergey SokolovTel: +7 495 933 [email protected]

Deputy editorNatalia Gaisenok Tel: +38 044 2071299

Russian coal specifications

Type of coal Coal grade Vitrinite reflectance index (Ro) % Volatile matter % Plastic layer thickness

(Y) mm

Anthracite A >2.2 <8

Brown coal B < 0.6 10—48

Long flame coal D 0.40—0.79 >30 <6

Long flame gas coal DG 0.50—0.79 >30 6—9

Gas coal G 0.50—0.99 >30 6—12

Gas fat semi-lean coal GZho <99 <38 10—16

Gas fat coal GZh 0.50—0.99 38.00 16—25

Fat coal Zh 0.80—1.19 28—36 14—26

Semi-lean caking coal oS 1.30—1.79 <20 6—12

Lean caking coal TS 1.40—1.99 <20 <6

Weakly caking coal SS 0.70—1.79 >20 <6

Lean coal T 1.30—2.59 8—18 none

Coke fat coal KZh 0.90—1.29 24—30 >18

Coke coal K 1.00—1.69 24—28 13—17

Coke semi-lean coal Ko 0.80—1.39 24—28 10—12

Coke weakly caking low metamorphic coal KSN 0.80—1.09 >30 6—9

Coke weakly caking coal KS 1.10—1.69 <30 6—9

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