We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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.
|
|
Friday, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
|
|
|
Showing 31 to 35 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Pendopo Energi Batubara - Indonesia
- Coal and Oil Company - UAE
- Merrill Lynch Commodities Europe
- Borneo Indobara - Indonesia
- Mercuria Energy - Indonesia
- Parliament of New Zealand
- Miang Besar Coal Terminal - Indonesia
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Barasentosa Lestari - Indonesia
- Bharathi Cement Corporation - India
- Goldman Sachs - Singapore
- Ministry of Transport, Egypt
- Australian Coal Association
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- Global Coal Blending Company Limited - Australia
- Romanian Commodities Exchange
- PTC India Limited - India
- Kepco SPC Power Corporation, Philippines
- Sojitz Corporation - Japan
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Orica Australia Pty. Ltd.
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Alfred C Toepfer International GmbH - Germany
- Salva Resources Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- India Bulls Power Limited - India
- Manunggal Multi Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Jaiprakash Power Ventures ltd
- Samtan Co., Ltd - South Korea
- Holcim Trading Pte Ltd - Singapore
- LBH Netherlands Bv - Netherlands
- Commonwealth Bank - Australia
- Kapuas Tunggal Persada - Indonesia
- Intertek Mineral Services - Indonesia
- Antam Resourcindo - Indonesia
- Chamber of Mines of South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Thiess Contractors Indonesia
- Interocean Group of Companies - India
- Timah Investasi Mineral - Indoneisa
- The University of Queensland
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- PetroVietnam Power Coal Import and Supply Company
- CIMB Investment Bank - Malaysia
- Star Paper Mills Limited - India
- GAC Shipping (India) Pvt Ltd
- The State Trading Corporation of India Ltd
- Baramulti Group, Indonesia
- Attock Cement Pakistan Limited
- Semirara Mining Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- PNOC Exploration Corporation - Philippines
- Indian Energy Exchange, India
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Marubeni Corporation - India
- Malabar Cements Ltd - India
- Mercator Lines Limited - India
- Coalindo Energy - Indonesia
- Ministry of Mines - Canada
- Pipit Mutiara Jaya. PT, Indonesia
- Eastern Energy - Thailand
- Bukit Makmur.PT - Indonesia
- Anglo American - United Kingdom
- Eastern Coal Council - USA
- Jorong Barutama Greston.PT - Indonesia
- New Zealand Coal & Carbon
- GVK Power & Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- Videocon Industries ltd - India
- Petron Corporation, Philippines
- Indian Oil Corporation Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Bulk Trading Sa - Switzerland
- Petrochimia International Co. Ltd.- Taiwan
- Australian Commodity Traders Exchange
- Bhoruka Overseas - Indonesia
- Mjunction Services Limited - India
- Directorate Of Revenue Intelligence - India
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Heidelberg Cement - Germany
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Sindya Power Generating Company Private Ltd
- Mintek Dendrill Indonesia
- Bayan Resources Tbk. - Indonesia
- ASAPP Information Group - India
- Semirara Mining and Power Corporation, Philippines
- Cement Manufacturers Association - India
- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- Kaltim Prima Coal - Indonesia
- McConnell Dowell - Australia
- Thai Mozambique Logistica
- Larsen & Toubro Limited - India
- Latin American Coal - Colombia
- Essar Steel Hazira Ltd - India
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Electricity Authority, New Zealand
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- ICICI Bank Limited - India
- Orica Mining Services - Indonesia
- Global Business Power Corporation, Philippines
- CNBM International Corporation - China
- Standard Chartered Bank - UAE
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Rio Tinto Coal - Australia
- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
- Energy Link Ltd, New Zealand
- Aboitiz Power Corporation - Philippines
- Deloitte Consulting - India
- Ceylon Electricity Board - Sri Lanka
- Independent Power Producers Association of India
- Binh Thuan Hamico - Vietnam
- GMR Energy Limited - India
- Economic Council, Georgia
- Karaikal Port Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Parry Sugars Refinery, India
- Makarim & Taira - Indonesia
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- Metalloyd Limited - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Chettinad Cement Corporation Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Sakthi Sugars Limited - India
- Sarangani Energy Corporation, Philippines
- Dalmia Cement Bharat India
- SMG Consultants - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Energy Development Corp, Philippines
- Edison Trading Spa - Italy
- Kalimantan Lumbung Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- Tamil Nadu electricity Board
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Electricity Authority - India
- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- TeaM Sual Corporation - Philippines
- Lanco Infratech Ltd - India
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- SN Aboitiz Power Inc, Philippines
- Power Finance Corporation Ltd., India
- Riau Bara Harum - Indonesia
- Bukit Baiduri Energy - Indonesia
- Bhushan Steel Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Coastal Gujarat Power Limited - India
- San Jose City I Power Corp, Philippines
- SMC Global Power, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Neyveli Lignite Corporation Ltd, - India
- Electricity Generating Authority of Thailand
- Madhucon Powers Ltd - India
- Kumho Petrochemical, South Korea
- International Coal Ventures Pvt Ltd - India
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Central Java Power - Indonesia
- Posco Energy - South Korea
- Altura Mining Limited, Indonesia
- Kartika Selabumi Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- AsiaOL BioFuels Corp., Philippines
- PowerSource Philippines DevCo
- Planning Commission, India
- European Bulk Services B.V. - Netherlands
- IEA Clean Coal Centre - UK
- Gujarat Sidhee Cement - India
- Maheswari Brothers Coal Limited - India
- Uttam Galva Steels Limited - India
- Xindia Steels Limited - India
- Banpu Public Company Limited - Thailand
- The Treasury - Australian Government
- Bank of Tokyo Mitsubishi UFJ Ltd
- Tata Chemicals Ltd - India
- Wilmar Investment Holdings
- London Commodity Brokers - England
- Vizag Seaport Private Limited - India
- Indonesian Coal Mining Association
|
| |
| |
|
