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