COALspot.com keeps you connected across the coal world
  • MINISTRY OF ENERGY OF INDONESIA HAS REVISED DOWN JUNE 2017 COAL PRICE REFERENCE TO US$ 75.46 A TON (LAST UPDATE: 7 JUNE 2017
  • SHARE YOUR CORPORATE COAL & SHIPPING NEWS WITH US - news@coalspot.com
  • WE WELCOME ARTICLE SUBMISSIONS FROM EXPERTS IN THE AREAS OF COAL, MINING, SHIPPING, ETC.

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
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.

Recent News

Monday, 10 July 17
THE FREIGHT MARKET WAS SHOWS A NEGATIVE TREND WEEK OVER WEEK
COALspot.com: The Freight market decline this past week compared to the previous week, as BDI and Cape indexes show a negative trend week over week ...


Friday, 07 July 17
SHOULD WE BE AVOIDING GENERAL AVERAGE? - ALEX KEMP
KNOWLEDGE TO ELEVATE Calls for general average to be abolished are nearly as old as the regime itself. A representative of Lloyd’s atten ...


Friday, 07 July 17
EIA ESTIMATES SHOW U.S WEEKLY COAL PRODUCTION UP 1.7 PERCENT
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.9 million short tonn ...


Thursday, 06 July 17
SUPRAMAX: INDO TO INDIA TRIPS WITH DELIVERY THAILAND RANGE IS GIVING OWNERS AROUND MID $8000 - FEARNLEYS
Supramax Another slow start to the week with somewhat softening rates and few fixtures. According to Fearnleys Weekly Dry bulk report, the N ...


Thursday, 06 July 17
UNEXPECTED MOVE FROM CHINA BOOSTS COAL PRICES - OIL PRICE
Coal prices have been cooling the last few months — after a spectacular run last year. But news late last week suggests the market is about t ...


   2 3 4 5 6   
Showing 16 to 20 news of total 4876
News by Category
Popular News
 
Total Members : 24,150
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • TANGEDCO India
  • PLN - Indonesia
  • Glencore India Pvt. Ltd
  • Gresik Semen - Indonesia
  • Indorama - Singapore
  • Directorate Of Revenue Intelligence - India
  • Neyveli Lignite Corporation Ltd, - India
  • India Bulls Power Limited - India
  • Renaissance Capital - South Africa
  • Berau Coal - Indonesia
  • Inco-Indonesia
  • Rio Tinto Coal - Australia
  • Petrochimia International Co. Ltd.- Taiwan
  • KPMG - USA
  • Adaro Indonesia
  • Medco Energi Mining Internasional
  • Manunggal Multi Energi - Indonesia
  • Coastal Gujarat Power Limited - India
  • ICICI Bank Limited - India
  • Parry Sugars Refinery, India
  • Merrill Lynch Bank
  • Maersk Broker
  • Maharashtra Electricity Regulatory Commission - India
  • Vale Mozambique
  • JPower - Japan
  • Savvy Resources Ltd - HongKong
  • Altura Mining Limited, Indonesia
  • Surastha Cement
  • Russian Coal LLC
  • Kobe Steel Ltd - Japan
  • UOB Asia (HK) Ltd
  • Trasteel International SA, Italy
  • Essar Steel Hazira Ltd - India
  • Noble Europe Ltd - UK
  • Georgia Ports Authority, United States
  • Posco Energy - South Korea
  • Indonesian Coal Mining Association
  • Central Java Power - Indonesia
  • Argus Media - Singapore
  • Global Coal Blending Company Limited - Australia
  • Coalindo Energy - Indonesia
  • Economic Council, Georgia
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Ceylon Electricity Board - Sri Lanka
  • Bangladesh Power Developement Board
  • Kartika Selabumi Mining - Indonesia
  • The Treasury - Australian Government
  • Mintek Dendrill Indonesia
  • TeaM Sual Corporation - Philippines
  • PTC India Limited - India
  • Bukit Asam (Persero) Tbk - Indonesia
  • Kaltim Prima Coal - Indonesia
  • Mercuria Energy - Indonesia
  • IMC Shipping - Singapore
  • Carbofer General Trading SA - India
  • Xindia Steels Limited - India
  • GMR Energy Limited - India
  • Barclays Capital - USA
  • Kumho Petrochemical, South Korea
  • J M Baxi & Co - India
  • ETA - Dubai
  • EMO - The Netherlands
  • PetroVietnam
  • Coeclerici Indonesia
  • Bulk Trading Sa - Switzerland
  • SRK Consulting
  • CESC Limited - India
  • Shenhua Group - China
  • Gujarat Sidhee Cement - India
  • Cement Manufacturers Association - India
  • NTPC Limited - India
  • Orica Australia Pty. Ltd.
  • IEA Clean Coal Centre - UK
  • Directorate General of MIneral and Coal - Indonesia
  • Banpu Public Company Limited - Thailand
  • Australian Coal Association
  • Ernst & Young Pvt. Ltd.
  • VISA Power Limited - India
  • GVK Power & Infra Limited - India
  • Binh Thuan Hamico - Vietnam
  • Wood Mackenzie - Singapore
  • Vijayanagar Sugar Pvt Ltd - India
  • Simpson Spence & Young - Indonesia
  • bp singapore
  • Cargill India Pvt Ltd
  • Romanian Commodities Exchange
  • Tata Power - India
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Thailand Anthracite
  • SGS (Thailand) Limited
  • Madhucon Powers Ltd - India
  • Bharathi Cement Corporation - India
  • Orica Mining Services - Indonesia
  • Pinang Coal Indonesia
  • EIA - United States
  • Enel Italy
  • Bayan Resources Tbk. - Indonesia
  • Maruti Cements - India
  • Parliament of New Zealand
  • Indian School of Mines
  • McConnell Dowell - Australia
  • Malabar Cements Ltd - India
  • Rudhra Energy - India
  • Bhatia International Limited - India
  • GAC Shipping (India) Pvt Ltd
  • Vizag Seaport Private Limited - India
  • Mjunction Services Limited - India
  • Samtan Co., Ltd - South Korea
  • PLN Batubara - Indonesia
  • Sinarmas Energy and Mining - Indonesia
  • Sree Jayajothi Cements Limited - India
  • Bhushan Steel Limited - India
  • Coal India Limited
  • Borneo Indobara - Indonesia
  • Thermax Limited - India
  • Platou - Singapore
  • Ministry of Mines - Canada
  • Total Coal South Africa
  • Siam City Cement - Thailand
  • Attock Cement Pakistan Limited
  • Thiess Contractors Indonesia
  • Kohat Cement Company Ltd. - Pakistan
  • Globalindo Alam Lestari - Indonesia
  • Runge Indonesia
  • CNBM International Corporation - China
  • ING Bank NV - Singapore
  • DBS Bank - Singapore
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Platts
  • Indo Tambangraya Megah - Indonesia
  • Thai Mozambique Logistica
  • Oldendorff Carriers - Singapore
  • Independent Power Producers Association of India
  • Tanito Harum - Indonesia
  • Humpuss - Indonesia
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Asmin Koalindo Tuhup - Indonesia
  • McKinsey & Co - India
  • Thomson Reuters GRC
  • Price Waterhouse Coopers - Russia
  • Planning Commission, India
  • New Zealand Coal & Carbon
  • Gujarat Mineral Development Corp Ltd - India
  • IOL Indonesia
  • Panama Canal Authority
  • Shree Cement - India
  • Eastern Energy - Thailand
  • Merrill Lynch Commodities Europe
  • IBC Asia (S) Pte Ltd
  • Aboitiz Power Corporation - Philippines
  • Heidelberg Cement - Germany
  • Jaiprakash Power Ventures ltd
  • Mechel - Russia
  • TNB Fuel Sdn Bhd - Malaysia
  • Mercator Lines Limited - India
  • Sical Logistics Limited - India
  • Sakthi Sugars Limited - India
  • Africa Commodities Group - South Africa
  • The India Cements Ltd
  • OPG Power Generation Pvt Ltd - India
  • ACC Limited - India
  • Goldman Sachs - Singapore
  • Larsen & Toubro Limited - India
  • ANZ Bank - Australia
  • Core Mineral Indonesia
  • Sindya Power Generating Company Private Ltd
  • Coal and Oil Company - UAE
  • Power Finance Corporation Ltd., India
  • Eastern Coal Council - USA
  • Minerals Council of Australia
  • KEPCO - South Korea
  • Ministry of Transport, Egypt
  • Reliance Power - India
  • Freeport Indonesia
  • Rashtriya Ispat Nigam Limited - India
  • APGENCO India
  • Indian Oil Corporation Limited
  • WorleyParsons
  • Aditya Birla Group - India
  • CIMB Investment Bank - Malaysia
  • KPCL - India
  • KOWEPO - South Korea
  • NALCO India
  • Jorong Barutama Greston.PT - Indonesia
  • Infraline Energy - India
  • TNPL - India
  • globalCOAL - UK
  • Meenaskhi Energy Private Limited - India
  • Bukit Makmur.PT - Indonesia
  • Vedanta Resources Plc - India
  • IHS Mccloskey Coal Group - USA
  • Inspectorate - India
  • RBS Sempra - UK
  • Jindal Steel & Power Ltd - India
  • Australian Commodity Traders Exchange
  • White Energy Company Limited
  • PetroVietnam Power Coal Import and Supply Company
  • London Commodity Brokers - England
  • Ambuja Cements Ltd - India
  • MEC Coal - Indonesia
  • Billiton Holdings Pty Ltd - Australia
  • Uttam Galva Steels Limited - India
  • U S Energy Resources
  • Mitra SK Pvt Ltd - India
  • Leighton Contractors Pty Ltd - Australia
  • Maheswari Brothers Coal Limited - India
  • Krishnapatnam Port Company Ltd. - India
  • Coaltrans Conferences
  • Riau Bara Harum - Indonesia
  • Japan Coal Energy Center
  • BRS Brokers - Singapore
  • Gujarat Electricity Regulatory Commission - India
  • Samsung - South Korea
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Cardiff University - UK
  • Vitol - Bahrain
  • SASOL - South Africa
  • Bhoruka Overseas - Indonesia
  • Tata Chemicals Ltd - India
  • Xstrata Coal
  • Port Waratah Coal Services - Australia
  • Wilmar Investment Holdings
  • Intertek Mineral Services - Indonesia
  • BNP Paribas - Singapore
  • ASAPP Information Group - India
  • Thriveni
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • MS Steel International - UAE
  • Singapore Mercantile Exchange
  • Deutsche Bank - India
  • Fearnleys - India
  • Toyota Tsusho Corporation, Japan
  • Petrosea - Indonesia
  • Energy Link Ltd, New Zealand
  • Ministry of Finance - Indonesia
  • Sucofindo - Indonesia
  • Anglo American - United Kingdom
  • Sojitz Corporation - Japan
  • Ince & co LLP
  • Peabody Energy - USA
  • Chettinad Cement Corporation Ltd - India
  • Edison Trading Spa - Italy
  • Credit Suisse - India
  • Indogreen Group - Indonesia
  • Miang Besar Coal Terminal - Indonesia
  • JPMorgan - India
  • Formosa Plastics Group - Taiwan
  • European Bulk Services B.V. - Netherlands
  • Kobexindo Tractors - Indoneisa
  • GHCL Limited - India
  • World Coal - UK
  • Central Electricity Authority - India
  • Cemex - Philippines
  • Gupta Coal India Ltd
  • Pendopo Energi Batubara - Indonesia
  • Clarksons - UK
  • Standard Chartered Bank - UAE
  • Maybank - Singapore
  • Bahari Cakrawala Sebuku - Indonesia
  • Cosco
  • World Bank
  • Agrawal Coal Company - India
  • CoalTek, United States
  • Barasentosa Lestari - Indonesia
  • Indonesia Power. PT
  • Indika Energy - Indonesia
  • GNFC Limited - India
  • LBH Netherlands Bv - Netherlands
  • OCBC - Singapore
  • Commonwealth Bank - Australia
  • Makarim & Taira - Indonesia
  • Kideco Jaya Agung - Indonesia
  • HSBC - Hong Kong
  • Permata Bank - Indonesia
  • Star Paper Mills Limited - India
  • Straits Asia Resources Limited - Singapore
  • Metalloyd Limited - United Kingdom
  • Geoservices-GeoAssay Lab
  • Antam Resourcindo - Indonesia
  • Lanco Infratech Ltd - India
  • UBS Singapore
  • CCIC - Indonesia
  • Arutmin Indonesia
  • Chamber of Mines of South Africa
  • Kapuas Tunggal Persada - Indonesia
  • The University of Queensland
  • Adani Power Ltd - India
  • SUEK AG - Indonesia
  • Coal Orbis AG
  • Bank of China, Malaysia
  • Asian Development Bank
  • Latin American Coal - Colombia
  • SMG Consultants - Indonesia
  • Interocean Group of Companies - India
  • Moodys - Singapore
  • Timah Investasi Mineral - Indoneisa
  • Mitsubishi Corporation
  • Marubeni Corporation - India
  • Qatrana Cement - Jordan
  • Holcim Trading Pte Ltd - Singapore
  • Karaikal Port Pvt Ltd - India
  • Siam City Cement PLC, Thailand
  • Cigading International Bulk Terminal - Indonesia
  • PNOC Exploration Corporation - Philippines
  • Bukit Baiduri Energy - Indonesia
  • Lafarge - France
  • Ind-Barath Power Infra Limited - India
  • International Coal Ventures Pvt Ltd - India
  • Jatenergy - Australia
  • Idemitsu - Japan
  • Salva Resources Pvt Ltd - India
  • South Luzon Thermal Energy Corporation
  • Mitsui - Indonesia
  • Asia Cement - Taiwan
  • Deloitte Consulting - India
  • The State Trading Corporation of India Ltd
  • Electricity Generating Authority of Thailand
  • Dalmia Cement Bharat India
  • Alfred C Toepfer International GmbH - Germany
  • Grasim Industreis Ltd - India
  • Bangkok Bank PCL
  • Kalimantan Lumbung Energi - Indonesia
  • Britmindo - Indonesia
  • Bank of America
  • Videocon Industries ltd - India
  • GB Group - China
  • Malco - India
  • Karbindo Abesyapradhi - Indoneisa
  • Arch Coal - USA