COALspot.com keeps you connected across the coal world
  • THE MEMR OF INDONESIA HAS REVISED DOWN APRIL 2018 COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS EXCEPT POWER PRODUCERS TO US$ 94.75 A TON (LAST UPDATE: 4 APRIL 2018)
  • THE MEMR OF INDONESIA HAS DECLARED US$ 70 A TON FOR APRIL 2018 COAL PRICE REFERENCE FOR DOMESTIC POWER PRODUCERS(LAST UPDATE: 4 APRIL 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

Monday, 02 April 18
THIESS SECURES $240M SATUI EXTENSION
The successful implementation of an innovative mining plan by Thiess at the Satui coal mine in South Kalimantan, has resulted in a $240 million con ...


Friday, 30 March 18
SHIPPING INDUSTRY CONFIDENCE HITS FOUR-YEAR HIGH - MOORE STEPHENS
Shipping Confidence Survey In February 2018, the average confidence level expressed by respondents was up from 6.2 in November 2017 t ...


Friday, 30 March 18
EXPLAINING POLAND'S COAL PARADOX - FORBES
In the U.S. coal is succumbing to market forces despite the Trump Administration’s push to support the industry. Abundant, cheap and cleaner ...


Friday, 30 March 18
THIESS SECURES $140M MT OWEN INCREASE
Thiess has secured a A$140 million increase to its contract with Glencore for coal mining services at Mt Owen in the Hunter Valley, Australia. Mt O ...


Wednesday, 28 March 18
THIESS WINS $280M WAHANA EXTENSION
Thiess has been awarded a three-year $280 million contract extension at the Wahana coal mine in South Kalimantan, Indonesia. According to Thie ...


   2 3 4 5 6   
Showing 16 to 20 news of total 5129
News by Category
Popular News
 
Total Members : 25,022
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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