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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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Friday, 28 June 24
INDIAN POWER STATIONS STOCKED WITH BUMPER COAL SUPPLY AS TRANSPORT WOES EASE - BUSINESS STANDARD
Even as power demand has touched a historic high of 250 gigawatts (Gw) amid sweltering heat this June, India’s power stations are stocked wit ...
Friday, 28 June 24
INDIA'S CY23 COAL USE LARGER THAN NORTH AMERICA, EUROPE COMBINED - THE HINDU
For the first time, India’s coal consumption surpassed that of North America and Europe combined in the calendar year 2023, said Energy Insti ...
Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Althoug ...
Monday, 24 June 24
INDIA'S COAL-BASED POWER DEMAND AT ALL-TIME HIGH, GOVERNMENT SAYS - REUTERS
India’s demand for coal-based power has risen by 7.3% this fiscal year to an all-time high, the government said in a statement on Wednesday.
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Monday, 24 June 24
CHINA'S COAL INDUSTRY TURNS GREENER THROUGH INNOVATIVE APPROACHES - PEOPLE'S DAILY
At an opencast mine operated by Inner Mongolia Pingzhuang Coal Group Co. Ltd., a subsidiary of CHN Energy Investment Group (CHN Energy), a 14-meter ...
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Showing 11 to 15 news of total 6871 |
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- Rio Tinto Coal - Australia
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- Merrill Lynch Commodities Europe
- PetroVietnam Power Coal Import and Supply Company
- Bulk Trading Sa - Switzerland
- Tata Chemicals Ltd - India
- Bangladesh Power Developement Board
- Sical Logistics Limited - India
- Power Finance Corporation Ltd., India
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ASAPP Information Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- Larsen & Toubro Limited - India
- Banpu Public Company Limited - Thailand
- Marubeni Corporation - India
- Ambuja Cements Ltd - India
- Coalindo Energy - Indonesia
- Central Java Power - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Goldman Sachs - Singapore
- Sojitz Corporation - Japan
- GAC Shipping (India) Pvt Ltd
- Salva Resources Pvt Ltd - India
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Australian Coal Association
- Bhushan Steel Limited - India
- Electricity Generating Authority of Thailand
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Energy - Thailand
- Meralco Power Generation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Neyveli Lignite Corporation Ltd, - India
- Port Waratah Coal Services - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indonesian Coal Mining Association
- Savvy Resources Ltd - HongKong
- Grasim Industreis Ltd - India
- Borneo Indobara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement - Thailand
- SMC Global Power, Philippines
- Formosa Plastics Group - Taiwan
- Interocean Group of Companies - India
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Siam City Cement PLC, Thailand
- Chettinad Cement Corporation Ltd - India
- London Commodity Brokers - England
- ICICI Bank Limited - India
- Bukit Makmur.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- The State Trading Corporation of India Ltd
- Essar Steel Hazira Ltd - India
- Aditya Birla Group - India
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- Australian Commodity Traders Exchange
- SN Aboitiz Power Inc, Philippines
- Electricity Authority, New Zealand
- Globalindo Alam Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Miang Besar Coal Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Posco Energy - South Korea
- Indogreen Group - Indonesia
- Timah Investasi Mineral - Indoneisa
- Alfred C Toepfer International GmbH - Germany
- Asmin Koalindo Tuhup - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Mjunction Services Limited - India
- McConnell Dowell - Australia
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Indo Tambangraya Megah - Indonesia
- Parliament of New Zealand
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Kobexindo Tractors - Indoneisa
- Antam Resourcindo - Indonesia
- Oldendorff Carriers - Singapore
- Aboitiz Power Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Renaissance Capital - South Africa
- Deloitte Consulting - India
- Sakthi Sugars Limited - India
- Economic Council, Georgia
- Heidelberg Cement - Germany
- Independent Power Producers Association of India
- Rashtriya Ispat Nigam Limited - India
- Petron Corporation, Philippines
- Cement Manufacturers Association - India
- Sarangani Energy Corporation, Philippines
- Attock Cement Pakistan Limited
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Singapore Mercantile Exchange
- Medco Energi Mining Internasional
- Karbindo Abesyapradhi - Indoneisa
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Sidhee Cement - India
- Semirara Mining and Power Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Thai Mozambique Logistica
- GMR Energy Limited - India
- Simpson Spence & Young - Indonesia
- SMG Consultants - Indonesia
- IEA Clean Coal Centre - UK
- Chamber of Mines of South Africa
- Romanian Commodities Exchange
- AsiaOL BioFuels Corp., Philippines
- Bhoruka Overseas - Indonesia
- Kartika Selabumi Mining - Indonesia
- Global Business Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- Jorong Barutama Greston.PT - Indonesia
- New Zealand Coal & Carbon
- Jindal Steel & Power Ltd - India
- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- Manunggal Multi Energi - Indonesia
- Vedanta Resources Plc - India
- Xindia Steels Limited - India
- Indian Oil Corporation Limited
- Anglo American - United Kingdom
- Karaikal Port Pvt Ltd - India
- Planning Commission, India
- Semirara Mining Corp, Philippines
- Minerals Council of Australia
- Metalloyd Limited - United Kingdom
- Global Coal Blending Company Limited - Australia
- Lanco Infratech Ltd - India
- The University of Queensland
- PowerSource Philippines DevCo
- Sree Jayajothi Cements Limited - India
- Kalimantan Lumbung Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- Latin American Coal - Colombia
- Samtan Co., Ltd - South Korea
- GVK Power & Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- CNBM International Corporation - China
- Tamil Nadu electricity Board
- Ceylon Electricity Board - Sri Lanka
- Commonwealth Bank - Australia
- Jaiprakash Power Ventures ltd
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- MS Steel International - UAE
- White Energy Company Limited
- Madhucon Powers Ltd - India
- Eastern Coal Council - USA
- Maharashtra Electricity Regulatory Commission - India
- San Jose City I Power Corp, Philippines
- Agrawal Coal Company - India
- Baramulti Group, Indonesia
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- Mintek Dendrill Indonesia
- Standard Chartered Bank - UAE
- Georgia Ports Authority, United States
- Energy Development Corp, Philippines
- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- Therma Luzon, Inc, Philippines
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Mercator Lines Limited - India
- Price Waterhouse Coopers - Russia
- Bhatia International Limited - India
- OPG Power Generation Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- VISA Power Limited - India
- Africa Commodities Group - South Africa
- Orica Mining Services - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Wilmar Investment Holdings
- Mercuria Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coal and Oil Company - UAE
- Videocon Industries ltd - India
- Kideco Jaya Agung - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Bharathi Cement Corporation - India
- Kumho Petrochemical, South Korea
- Bahari Cakrawala Sebuku - Indonesia
- The Treasury - Australian Government
- Ministry of Mines - Canada
- Dalmia Cement Bharat India
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