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Wednesday, 13 June 12
LOW COAL PRICES COULD CHANGE SUPPLY SIDE DYNAMICS - FITCH RATINGS
 Fitch Ratings believes that the weakness seen in thermal coal prices in recent months should reverse once demand from major importers recovers, although there is a risk low prices may persist into 2013, changing the industry's supply side dynamics.
The price of thermal coal (5,500 kcal coal at Newcastle Australia on a free-on-board basis) reached a two-year low of USD87 per metric ton in early June 2012, down from USD142/mt in January 2011. Major reasons for this decline include China's economic slowdown and high coal inventory levels, increased production and exports from Indonesia and Australia, and increased exports by US coal producers due to cheap natural gas displacing coal used in US power generation.
Fitch believes that prices can recover from current lows once demand from key importers - China and India - improves, and the supply side adjusts to reflect the price environment. India depends on coal as its major energy source and is increasingly relying on imported coal as it struggles to increase domestic production. Likewise in China, thermal coal fired power represents more than 70% of the country's energy needs; Fitch believes thermal coal demand from China will lift again post sufficient policy easing by the government, and continue rising over the medium-to-long term in line with the country's strong GDP growth outlook, albeit lower than previous years.
The weak pricing environment is exposing the business risks of high-cost coal producers, as coal prices fall near or below the marginal cost of production. Many Australian producers have high cash costs of production; such operators will be significantly affected if prices remain low for an extended period. At the same time, sustained low coal prices can shift buyers from low-rank coal to higher-grade coals and thus negatively affect both demand and realized prices for low-rank coal.
Fitch notes that many large coal producers have contracts in place with both volumes and prices fixed, typically for a period of one year; such contracts can account for a meaningful share of their total revenues - for example around 65% for Adaro Indonesia ('BB+'/Stable) and around 45% PT Indika Energy ('B+'/Positive). These operators would be insulated from a temporary weakening of coal prices to some extent. However, should low prices persist through 2012 and into 2013, it will negatively affect the prices they negotiate for 2013; such negotiations typically take place in Q4 and Q1 of each calendar year.
Should the current low price environment persist into 2013, Fitch expects high-cost producers in Australia and the US to undertake production cuts, and review expansion projects under consideration. Fitch also believes that production expansion plans by low-cost producing countries like Indonesia may be curtailed. Such actions would limit coal production levels (or growth) and help address oversupply.
In rating companies producing commodities, like coal, Fitch takes a through-the-cycle approach to its ratings; this factors in a reasonable level of rating headroom to accommodate weakening of coal prices. Cash cost of production and cash margins over an industry cycle are given a heavy emphasis and factored into the ratings. Hence, Fitch does not expect any immediate negative rating actions on its rated coal producers in the Asia-Pacific region.
Source: Fitch Ratings
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Monday, 02 November 20
PHILIPPINES GOVERNMENT SAYS NO TO NEW COAL PLANT PROPOSALS - IEEFA | 24 PILIPINAS
The Duterte administration will no longer accept proposals to construct new coal power plants, a dramatic shift in energy policy that counts on dec ...
Sunday, 01 November 20
GRADUAL RECOVERY FOR INDONESIAN COAL FROM 4Q20; RISKS REMAIN - FITCH RATINGS
Fitch Ratings expects the credit metrics of Indonesian coal miners and coal contractors to improve from 4Q20 with the recovery in volumes and price ...
Wednesday, 28 October 20
BIODIESEL - NEW FUELS, NEW CHALLENGES - GARD | DNV GL
KNOWLEDGE TO ELEVATE
One of numerous possible ways to comply with the IMO’s strategy on the reduction of greenhouse gas (GHG) emissions ...
Wednesday, 28 October 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.35 PCT - XINHUA
China Taiyuan coal transaction price index stood at 127.94 points Monday, up 0.35 percent week on week.
The index, released by China ...
Wednesday, 28 October 20
MARKET INSIGHT - INTERMODAL
The global strive towards eco-friendliness and environmental sustainability in the shipping industry is mounting. There are currently almost 200 co ...
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- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- GVK Power & Infra Limited - India
- Minerals Council of Australia
- Binh Thuan Hamico - Vietnam
- Kartika Selabumi Mining - Indonesia
- Indian Oil Corporation Limited
- London Commodity Brokers - England
- Energy Development Corp, Philippines
- Bangladesh Power Developement Board
- Africa Commodities Group - South Africa
- Bukit Baiduri Energy - Indonesia
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Indonesian Coal Mining Association
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Posco Energy - South Korea
- Coastal Gujarat Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- European Bulk Services B.V. - Netherlands
- Barasentosa Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Uttam Galva Steels Limited - India
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Bahari Cakrawala Sebuku - Indonesia
- Global Business Power Corporation, Philippines
- Vedanta Resources Plc - India
- Siam City Cement PLC, Thailand
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- Economic Council, Georgia
- Iligan Light & Power Inc, Philippines
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Central Electricity Authority - India
- Chettinad Cement Corporation Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- San Jose City I Power Corp, Philippines
- Dalmia Cement Bharat India
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- IEA Clean Coal Centre - UK
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Ambuja Cements Ltd - India
- Makarim & Taira - Indonesia
- Tamil Nadu electricity Board
- Orica Australia Pty. Ltd.
- Star Paper Mills Limited - India
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- PTC India Limited - India
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- South Luzon Thermal Energy Corporation
- Bhoruka Overseas - Indonesia
- Banpu Public Company Limited - Thailand
- Indika Energy - Indonesia
- The Treasury - Australian Government
- Alfred C Toepfer International GmbH - Germany
- Carbofer General Trading SA - India
- Parliament of New Zealand
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Savvy Resources Ltd - HongKong
- Semirara Mining Corp, Philippines
- Planning Commission, India
- Meralco Power Generation, Philippines
- Trasteel International SA, Italy
- Altura Mining Limited, Indonesia
- Sakthi Sugars Limited - India
- SMG Consultants - Indonesia
- ASAPP Information Group - India
- MS Steel International - UAE
- Chamber of Mines of South Africa
- Bukit Makmur.PT - Indonesia
- Videocon Industries ltd - India
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- Vijayanagar Sugar Pvt Ltd - India
- McConnell Dowell - Australia
- Siam City Cement - Thailand
- Kideco Jaya Agung - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Kaltim Prima Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Energy Link Ltd, New Zealand
- Maheswari Brothers Coal Limited - India
- Gujarat Sidhee Cement - India
- Agrawal Coal Company - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- Meenaskhi Energy Private Limited - India
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- Commonwealth Bank - Australia
- Cigading International Bulk Terminal - Indonesia
- Thai Mozambique Logistica
- Riau Bara Harum - Indonesia
- Kumho Petrochemical, South Korea
- Global Green Power PLC Corporation, Philippines
- Australian Commodity Traders Exchange
- Directorate Of Revenue Intelligence - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- CNBM International Corporation - China
- PowerSource Philippines DevCo
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- India Bulls Power Limited - India
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Karaikal Port Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- Eastern Coal Council - USA
- Billiton Holdings Pty Ltd - Australia
- VISA Power Limited - India
- New Zealand Coal & Carbon
- Ministry of Transport, Egypt
- Neyveli Lignite Corporation Ltd, - India
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Heidelberg Cement - Germany
- Jaiprakash Power Ventures ltd
- Eastern Energy - Thailand
- Asmin Koalindo Tuhup - Indonesia
- Latin American Coal - Colombia
- Electricity Authority, New Zealand
- Singapore Mercantile Exchange
- Globalindo Alam Lestari - Indonesia
- Ministry of Finance - Indonesia
- Madhucon Powers Ltd - India
- Jindal Steel & Power Ltd - India
- TeaM Sual Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- Medco Energi Mining Internasional
- Timah Investasi Mineral - Indoneisa
- Borneo Indobara - Indonesia
- Aboitiz Power Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Interocean Group of Companies - India
- GAC Shipping (India) Pvt Ltd
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- LBH Netherlands Bv - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Sarangani Energy Corporation, Philippines
- Baramulti Group, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- Salva Resources Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Larsen & Toubro Limited - India
- Pendopo Energi Batubara - Indonesia
- Georgia Ports Authority, United States
- Bhatia International Limited - India
- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Indogreen Group - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Xindia Steels Limited - India
- CIMB Investment Bank - Malaysia
- Petron Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Renaissance Capital - South Africa
- Malabar Cements Ltd - India
- Oldendorff Carriers - Singapore
- ICICI Bank Limited - India
- Cement Manufacturers Association - India
- Sree Jayajothi Cements Limited - India
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- Aditya Birla Group - India
- Central Java Power - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- White Energy Company Limited
- Ceylon Electricity Board - Sri Lanka
- TNB Fuel Sdn Bhd - Malaysia
- Simpson Spence & Young - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Parry Sugars Refinery, India
- Kepco SPC Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Wood Mackenzie - Singapore
- Deloitte Consulting - India
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
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