We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 10 September 20
U.S. COAL PRODUCTION IN 2020 TO BE 511 MMST, 28 PER CENT LOWER THAN IN 2019 - EIA
EIA expects total U.S. coal production in 2020 to be 511 million short tons (MMst), 194 MMst (28%) lower than in 2019. Mitigation efforts related t ...
Thursday, 10 September 20
DRY BULK SHIPPING: CHINA'S DEMAND KEEPING THE DRY BULK MARKET GOING - PETER SAND | BIMCO
Overview
An impressive recovery in Chinese dry bulk imports has protected the industry from the effects of falling demand in the rest of the wo ...
Thursday, 10 September 20
TANKER SHIPPING: FREIGHT RATES BACK AT LOSS-MAKING LEVELS AFTER 12 VERY PROFITABLE MONTHS - BIMCO
Overview
A stunningly strong 12 months for the tanker shipping industry is now being replaced by lower freight rates, as lower oil product ...
Thursday, 10 September 20
INDIA'S COAL IMPORTS STUMBLE IN AUGUST, RAISING RISK OF SLOW RECOVERY - REFINITIV | BANCHERO COSTA
After posting a mild recovery in July, India's coal imports have stumbled in August as the South Asian nation battles to restart it ...
Thursday, 10 September 20
THE FIRST 8 MONTHS OF 2020, INDONESIA EXPORTED 217.4 MLN TONNES OF COAL BASED ON REFINITIV - BANCHERO COSTA
The coal market has been hit by a weaker global economy as a result of COVID-19 pandemic and falling industrial electricity demand ...
|
|
|
Showing 786 to 790 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Merrill Lynch Commodities Europe
- Bukit Makmur.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Dalmia Cement Bharat India
- TNB Fuel Sdn Bhd - Malaysia
- Attock Cement Pakistan Limited
- Ceylon Electricity Board - Sri Lanka
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Development Corp, Philippines
- Minerals Council of Australia
- Ind-Barath Power Infra Limited - India
- Meenaskhi Energy Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Indika Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Baramulti Group, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jaiprakash Power Ventures ltd
- Alfred C Toepfer International GmbH - Germany
- Agrawal Coal Company - India
- Bahari Cakrawala Sebuku - Indonesia
- Indo Tambangraya Megah - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vizag Seaport Private Limited - India
- Formosa Plastics Group - Taiwan
- Heidelberg Cement - Germany
- Borneo Indobara - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Rio Tinto Coal - Australia
- Bangladesh Power Developement Board
- Sindya Power Generating Company Private Ltd
- AsiaOL BioFuels Corp., Philippines
- Gujarat Sidhee Cement - India
- Leighton Contractors Pty Ltd - Australia
- Vijayanagar Sugar Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- ASAPP Information Group - India
- Larsen & Toubro Limited - India
- Ministry of Mines - Canada
- Binh Thuan Hamico - Vietnam
- Africa Commodities Group - South Africa
- Toyota Tsusho Corporation, Japan
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- Power Finance Corporation Ltd., India
- Global Green Power PLC Corporation, Philippines
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Sinarmas Energy and Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Siam City Cement PLC, Thailand
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Rashtriya Ispat Nigam Limited - India
- Simpson Spence & Young - Indonesia
- Cigading International Bulk Terminal - Indonesia
- MS Steel International - UAE
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- PowerSource Philippines DevCo
- Karbindo Abesyapradhi - Indoneisa
- TeaM Sual Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Central Java Power - Indonesia
- London Commodity Brokers - England
- Mercuria Energy - Indonesia
- McConnell Dowell - Australia
- Thiess Contractors Indonesia
- Riau Bara Harum - Indonesia
- Bhushan Steel Limited - India
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Manunggal Multi Energi - Indonesia
- India Bulls Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Parliament of New Zealand
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- PTC India Limited - India
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- Romanian Commodities Exchange
- Georgia Ports Authority, United States
- GN Power Mariveles Coal Plant, Philippines
- Parry Sugars Refinery, India
- Thai Mozambique Logistica
- Central Electricity Authority - India
- The State Trading Corporation of India Ltd
- Vedanta Resources Plc - India
- OPG Power Generation Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Siam City Cement - Thailand
- Orica Mining Services - Indonesia
- Videocon Industries ltd - India
- Star Paper Mills Limited - India
- Indian Energy Exchange, India
- Trasteel International SA, Italy
- Posco Energy - South Korea
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Sical Logistics Limited - India
- GVK Power & Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Renaissance Capital - South Africa
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Lanco Infratech Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Barasentosa Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- Planning Commission, India
- Latin American Coal - Colombia
- Mjunction Services Limited - India
- GMR Energy Limited - India
- South Luzon Thermal Energy Corporation
- Indian Oil Corporation Limited
- Meralco Power Generation, Philippines
- Standard Chartered Bank - UAE
- The Treasury - Australian Government
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Coal and Oil Company - UAE
- Interocean Group of Companies - India
- Economic Council, Georgia
- Marubeni Corporation - India
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- Samtan Co., Ltd - South Korea
- Goldman Sachs - Singapore
- Bharathi Cement Corporation - India
- Straits Asia Resources Limited - Singapore
- Wood Mackenzie - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Bukit Baiduri Energy - Indonesia
- Bhatia International Limited - India
- Sarangani Energy Corporation, Philippines
- Kumho Petrochemical, South Korea
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Sakthi Sugars Limited - India
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- Aboitiz Power Corporation - Philippines
- The University of Queensland
- Kartika Selabumi Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kobexindo Tractors - Indoneisa
- ICICI Bank Limited - India
- Indonesian Coal Mining Association
- Malabar Cements Ltd - India
- SMG Consultants - Indonesia
- Oldendorff Carriers - Singapore
- Australian Commodity Traders Exchange
- Jindal Steel & Power Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kepco SPC Power Corporation, Philippines
- SMC Global Power, Philippines
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining Corp, Philippines
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- Global Business Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Tata Chemicals Ltd - India
- Petron Corporation, Philippines
- Eastern Energy - Thailand
- Intertek Mineral Services - Indonesia
- Makarim & Taira - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Mercator Lines Limited - India
- Deloitte Consulting - India
- Salva Resources Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Eastern Coal Council - USA
- Aditya Birla Group - India
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Directorate Of Revenue Intelligence - India
- Therma Luzon, Inc, Philippines
- White Energy Company Limited
- Energy Link Ltd, New Zealand
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Uttam Galva Steels Limited - India
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- Independent Power Producers Association of India
|
| |
| |
|
