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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.
...
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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- Sojitz Corporation - Japan
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Parliament of New Zealand
- Timah Investasi Mineral - Indoneisa
- Central Java Power - Indonesia
- Georgia Ports Authority, United States
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- San Jose City I Power Corp, Philippines
- Economic Council, Georgia
- Indika Energy - Indonesia
- Siam City Cement - Thailand
- Madhucon Powers Ltd - India
- Jaiprakash Power Ventures ltd
- Directorate General of MIneral and Coal - Indonesia
- Global Business Power Corporation, Philippines
- Petron Corporation, Philippines
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Medco Energi Mining Internasional
- Cement Manufacturers Association - India
- Larsen & Toubro Limited - India
- Ceylon Electricity Board - Sri Lanka
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- Renaissance Capital - South Africa
- Toyota Tsusho Corporation, Japan
- Ministry of Transport, Egypt
- Energy Link Ltd, New Zealand
- GVK Power & Infra Limited - India
- Global Green Power PLC Corporation, Philippines
- Power Finance Corporation Ltd., India
- Coalindo Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- McConnell Dowell - Australia
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- Standard Chartered Bank - UAE
- Gujarat Electricity Regulatory Commission - India
- Bayan Resources Tbk. - Indonesia
- Karaikal Port Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The University of Queensland
- Anglo American - United Kingdom
- Grasim Industreis Ltd - India
- Interocean Group of Companies - India
- Gujarat Mineral Development Corp Ltd - India
- Australian Commodity Traders Exchange
- Agrawal Coal Company - India
- Wood Mackenzie - Singapore
- Semirara Mining and Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- London Commodity Brokers - England
- Mercuria Energy - Indonesia
- The State Trading Corporation of India Ltd
- Electricity Authority, New Zealand
- Iligan Light & Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- CNBM International Corporation - China
- Ambuja Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- Kalimantan Lumbung Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Kaltim Prima Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Carbofer General Trading SA - India
- Kohat Cement Company Ltd. - Pakistan
- Chettinad Cement Corporation Ltd - India
- Indian Oil Corporation Limited
- Sree Jayajothi Cements Limited - India
- Intertek Mineral Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Cigading International Bulk Terminal - Indonesia
- Makarim & Taira - Indonesia
- Eastern Energy - Thailand
- Formosa Plastics Group - Taiwan
- Jindal Steel & Power Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Planning Commission, India
- Krishnapatnam Port Company Ltd. - India
- IHS Mccloskey Coal Group - USA
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- Meenaskhi Energy Private Limited - India
- Merrill Lynch Commodities Europe
- Uttam Galva Steels Limited - India
- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- Riau Bara Harum - Indonesia
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Sidhee Cement - India
- Straits Asia Resources Limited - Singapore
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- Edison Trading Spa - Italy
- Singapore Mercantile Exchange
- Eastern Coal Council - USA
- Asmin Koalindo Tuhup - Indonesia
- SN Aboitiz Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Indonesian Coal Mining Association
- European Bulk Services B.V. - Netherlands
- Global Coal Blending Company Limited - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Xindia Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Deloitte Consulting - India
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Coastal Gujarat Power Limited - India
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Malabar Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Chamber of Mines of South Africa
- Tata Chemicals Ltd - India
- Indian Energy Exchange, India
- Manunggal Multi Energi - Indonesia
- Thai Mozambique Logistica
- Central Electricity Authority - India
- White Energy Company Limited
- Goldman Sachs - Singapore
- Kapuas Tunggal Persada - Indonesia
- Oldendorff Carriers - Singapore
- Africa Commodities Group - South Africa
- Ind-Barath Power Infra Limited - India
- Bhatia International Limited - India
- Kideco Jaya Agung - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Lanco Infratech Ltd - India
- Altura Mining Limited, Indonesia
- Orica Australia Pty. Ltd.
- ASAPP Information Group - India
- Port Waratah Coal Services - Australia
- Wilmar Investment Holdings
- Minerals Council of Australia
- Heidelberg Cement - Germany
- OPG Power Generation Pvt Ltd - India
- Tamil Nadu electricity Board
- Bhushan Steel Limited - India
- Aboitiz Power Corporation - Philippines
- Latin American Coal - Colombia
- Bank of Tokyo Mitsubishi UFJ Ltd
- PetroVietnam Power Coal Import and Supply Company
- GMR Energy Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sindya Power Generating Company Private Ltd
- Mjunction Services Limited - India
- Sakthi Sugars Limited - India
- Thiess Contractors Indonesia
- Bukit Makmur.PT - Indonesia
- Trasteel International SA, Italy
- Bharathi Cement Corporation - India
- Rio Tinto Coal - Australia
- Commonwealth Bank - Australia
- PowerSource Philippines DevCo
- Neyveli Lignite Corporation Ltd, - India
- Semirara Mining Corp, Philippines
- Energy Development Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Independent Power Producers Association of India
- PTC India Limited - India
- Romanian Commodities Exchange
- Mintek Dendrill Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Sical Logistics Limited - India
- TeaM Sual Corporation - Philippines
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Ministry of Mines - Canada
- CIMB Investment Bank - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Metalloyd Limited - United Kingdom
- Siam City Cement PLC, Thailand
- Coal and Oil Company - UAE
- Simpson Spence & Young - Indonesia
- Indo Tambangraya Megah - Indonesia
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- Directorate Of Revenue Intelligence - India
- Kumho Petrochemical, South Korea
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- SMG Consultants - Indonesia
- Samtan Co., Ltd - South Korea
- Bhoruka Overseas - Indonesia
- The Treasury - Australian Government
- Mercator Lines Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Billiton Holdings Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- Australian Coal Association
- Dalmia Cement Bharat India
- Kepco SPC Power Corporation, Philippines
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Baramulti Group, Indonesia
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