COALspot.com keeps you connected across the coal world
  • THE MINISTER OF ENERGY AND MINERAL RESOURCES REPUBLIC INDONESIA HAS REVISED UP FEBRUARY 2018 COAL PRICE REFERENCE TO US$ 100.69 A TON (LAST UPDATE: 6 FEBRUARY 2018)
  • 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

Tuesday, 06 February 18
THE FUNDAMENTALS FOR INDIAN COAL IMPORTS CONTINUE TO LOOK PROMISING - TORVALD KLAVENESS
Back in August we reported that the fundamentals impacting Indian coal imports looked more promising. Trade flow data today implies 17.4Mt of ...


Monday, 05 February 18
SUPRAMAX : INDONESIA TO INDIA PASSING THROUGH SINGAPORE HAS SOFTENED
COALspot.com: The daily average earnings for Supramax, for the route Indonesia to India passing through Singapore has softened, week over week, own ...


Friday, 02 February 18
SUPRAMAX : INDONESIA TO CHINA COAL TRIPS ARE PAYING AROUND MID USD 9000 - FEARNLEYS
Supramax Rather quiet week within Atl, specially Continent due to lack of cargoes. According to Fearnleys Weekly - Dry bulk report published ...


Friday, 02 February 18
U.S. YEAR-TO-DATE COAL PRODUCTION TOTALED 54.1 MMST, DOWN 8.8% YOY - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.3 million short tons ...


Thursday, 01 February 18
RISING US OIL EXPORTS, MARKET DISRUPTION, BRENT-WTI SPREAD - WOOD MACKENZIE
What will US tight oil growth do to crude markets? The build-up in volumes early this decade led to a supply glut that undermined prices in 2014. ...


   2 3 4 5 6   
Showing 16 to 20 news of total 5068
News by Category
Popular News
 
Total Members : 24,823
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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