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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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Wednesday, 12 June 24
CHINA ACCOUNTS FOR 16.3% OF AUSTRALIA'S COAL EXPORTS, FOLLOWED BY INDIA 14.4% - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels says Banchero Costa in its latest report.
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Wednesday, 12 June 24
LNG NEWBUILDING VALUES AT RECORD HIGH: 78 NEWBUILD ORDERS PLACED IN 2024, DOUBLING 2023 - VESON NAUTICAL
The number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first ...
Monday, 10 June 24
CHINA'S MAY COAL IMPORTS RISE 11% ON LOWER DOMESTIC OUTPUT - REUTERS
China’s imports of coal rose 11% in May from a year earlier, customs data and Reuters records showed on Friday, as lower domestic output this ...
Tuesday, 04 June 24
HOW DO WESTERN SANCTIONS ON RUSSIA IMPACT THE GLOBAL METALS, MINING AND COAL MARKETS - WOOD MACKENZIE
The geopolitical landscape for Russia, as a major supplier of various commodities, has undergone a dramatic transformation since the invasion of Uk ...
Friday, 22 March 24
CASE STUDY: DANGERS OF COAL CARGO - SKULD
Recently, a bulk cargo vessel carrying coal from South Africa to Singapore suffered a fatal accident, resulting in the deaths of three crew members ...
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Showing 21 to 25 news of total 6871 |
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- Commonwealth Bank - Australia
- Rio Tinto Coal - Australia
- Global Business Power Corporation, Philippines
- Eastern Energy - Thailand
- Binh Thuan Hamico - Vietnam
- Therma Luzon, Inc, Philippines
- Coal and Oil Company - UAE
- Cigading International Bulk Terminal - Indonesia
- Siam City Cement - Thailand
- India Bulls Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- Australian Coal Association
- Essar Steel Hazira Ltd - India
- Ambuja Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Romanian Commodities Exchange
- Bhoruka Overseas - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- IHS Mccloskey Coal Group - USA
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Manunggal Multi Energi - Indonesia
- Deloitte Consulting - India
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Mjunction Services Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Agrawal Coal Company - India
- Independent Power Producers Association of India
- Grasim Industreis Ltd - India
- The State Trading Corporation of India Ltd
- Bhatia International Limited - India
- White Energy Company Limited
- Indika Energy - Indonesia
- Indian Energy Exchange, India
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Eastern Coal Council - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Africa Commodities Group - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Singapore Mercantile Exchange
- Larsen & Toubro Limited - India
- Kapuas Tunggal Persada - Indonesia
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Kartika Selabumi Mining - Indonesia
- Goldman Sachs - Singapore
- Simpson Spence & Young - Indonesia
- OPG Power Generation Pvt Ltd - India
- Borneo Indobara - Indonesia
- Iligan Light & Power Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Aditya Birla Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Pendopo Energi Batubara - Indonesia
- Merrill Lynch Commodities Europe
- Central Java Power - Indonesia
- Mercuria Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Wilmar Investment Holdings
- Bukit Baiduri Energy - Indonesia
- GVK Power & Infra Limited - India
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- Toyota Tsusho Corporation, Japan
- Bayan Resources Tbk. - Indonesia
- Coastal Gujarat Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Bulk Trading Sa - Switzerland
- TeaM Sual Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- GAC Shipping (India) Pvt Ltd
- Cement Manufacturers Association - India
- The University of Queensland
- Gujarat Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Star Paper Mills Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Maheswari Brothers Coal Limited - India
- Globalindo Alam Lestari - Indonesia
- Minerals Council of Australia
- LBH Netherlands Bv - Netherlands
- Indian Oil Corporation Limited
- Bangladesh Power Developement Board
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- Energy Development Corp, Philippines
- Ministry of Transport, Egypt
- Medco Energi Mining Internasional
- Jorong Barutama Greston.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- European Bulk Services B.V. - Netherlands
- Kumho Petrochemical, South Korea
- Latin American Coal - Colombia
- Kideco Jaya Agung - Indonesia
- Central Electricity Authority - India
- Neyveli Lignite Corporation Ltd, - India
- Straits Asia Resources Limited - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- New Zealand Coal & Carbon
- Sojitz Corporation - Japan
- Attock Cement Pakistan Limited
- Leighton Contractors Pty Ltd - Australia
- MS Steel International - UAE
- Sarangani Energy Corporation, Philippines
- Heidelberg Cement - Germany
- London Commodity Brokers - England
- Miang Besar Coal Terminal - Indonesia
- Interocean Group of Companies - India
- Altura Mining Limited, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Karaikal Port Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Energy Link Ltd, New Zealand
- South Luzon Thermal Energy Corporation
- Jaiprakash Power Ventures ltd
- Chamber of Mines of South Africa
- Power Finance Corporation Ltd., India
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- ICICI Bank Limited - India
- SMG Consultants - Indonesia
- Mintek Dendrill Indonesia
- Barasentosa Lestari - Indonesia
- Planning Commission, India
- Thiess Contractors Indonesia
- Chettinad Cement Corporation Ltd - India
- Parliament of New Zealand
- Economic Council, Georgia
- Sakthi Sugars Limited - India
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- Semirara Mining and Power Corporation, Philippines
- CNBM International Corporation - China
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Thai Mozambique Logistica
- Directorate General of MIneral and Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Aboitiz Power Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Electricity Authority, New Zealand
- Bukit Makmur.PT - Indonesia
- Mercator Lines Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Coalindo Energy - Indonesia
- Indonesian Coal Mining Association
- VISA Power Limited - India
- McConnell Dowell - Australia
- Meralco Power Generation, Philippines
- Australian Commodity Traders Exchange
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Xindia Steels Limited - India
- Parry Sugars Refinery, India
- Renaissance Capital - South Africa
- Standard Chartered Bank - UAE
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- Marubeni Corporation - India
- PNOC Exploration Corporation - Philippines
- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- Sical Logistics Limited - India
- Oldendorff Carriers - Singapore
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Finance - Indonesia
- International Coal Ventures Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Meenaskhi Energy Private Limited - India
- IEA Clean Coal Centre - UK
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- Formosa Plastics Group - Taiwan
- Jindal Steel & Power Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Timah Investasi Mineral - Indoneisa
- ASAPP Information Group - India
- Trasteel International SA, Italy
- Bharathi Cement Corporation - India
- Tata Chemicals Ltd - India
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- Anglo American - United Kingdom
- Kepco SPC Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Malabar Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- The Treasury - Australian Government
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bhushan Steel Limited - India
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