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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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Friday, 02 February 24
DRY BULK MARKET: THE DOWNWARD REVISION IN THE GROWTH OF CAPESIZE TONNE DAYS IN JANUARY WITH THE BCI DROPPING - MARIA BERTZELETOU
In the last week of January, the dry freight market sustained weakness in the Capesize segment, while the number of ballasters in the Southeast (SE ...
Friday, 02 February 24
COAL INDIA ACHIEVES NEARLY 80% OF ITS FY24 PRODUCTION TARGET IN TEN MONTHS - CNBCTV18
For the month of January, the company’s production grew by 9.1% from the same period last year to 78.4 Million Tonnes (MT), from 71.9 MT last ...
Thursday, 01 February 24
CHINA'S WIND, SOLAR CAPACITY TO OVERTAKE COAL IN 2024 - INDUSTRY BODY, REUTERS REPORTED
China’s installed wind and solar capacity is expected to overtake coal for the first time this year, according to industry forecasts.
&nb ...
Thursday, 01 February 24
ANTI-DEDUCTION CLAUSES: CAN A CHARTERER WITHHOLD HIRE WITHOUT AN OWNER'S CONSENT? - SKULD
KNOWLEDGE TO ELEVATE
Summary
In The Anna Dorothea, the Court found that where a charterparty provides that no deduction from hire may be m ...
Thursday, 01 February 24
INDIA REBUILDS COAL STOCKS TO ENSURE ELECTRIC RELIABILITY - REUTERS
India’s electricity supply is much more comfortable at the start of 2024 than in either 2023 or 2022 as coal production has ramped up and the ...
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Showing 41 to 45 news of total 6871 |
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- Interocean Group of Companies - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhoruka Overseas - Indonesia
- Pendopo Energi Batubara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- Bayan Resources Tbk. - Indonesia
- Kobexindo Tractors - Indoneisa
- Romanian Commodities Exchange
- Chettinad Cement Corporation Ltd - India
- Aditya Birla Group - India
- Australian Coal Association
- Gujarat Electricity Regulatory Commission - India
- Bulk Trading Sa - Switzerland
- Global Green Power PLC Corporation, Philippines
- Commonwealth Bank - Australia
- Port Waratah Coal Services - Australia
- Star Paper Mills Limited - India
- CNBM International Corporation - China
- Renaissance Capital - South Africa
- Rio Tinto Coal - Australia
- Deloitte Consulting - India
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- Bhushan Steel Limited - India
- Antam Resourcindo - Indonesia
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- Marubeni Corporation - India
- Iligan Light & Power Inc, Philippines
- Australian Commodity Traders Exchange
- Mercator Lines Limited - India
- Anglo American - United Kingdom
- CIMB Investment Bank - Malaysia
- Semirara Mining Corp, Philippines
- TeaM Sual Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- Kepco SPC Power Corporation, Philippines
- London Commodity Brokers - England
- Pipit Mutiara Jaya. PT, Indonesia
- Price Waterhouse Coopers - Russia
- Parliament of New Zealand
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- Timah Investasi Mineral - Indoneisa
- Formosa Plastics Group - Taiwan
- Dalmia Cement Bharat India
- Cement Manufacturers Association - India
- Jindal Steel & Power Ltd - India
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Siam City Cement - Thailand
- Petron Corporation, Philippines
- Tamil Nadu electricity Board
- Standard Chartered Bank - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- Electricity Authority, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Therma Luzon, Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- GMR Energy Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- Grasim Industreis Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- Africa Commodities Group - South Africa
- Gujarat Sidhee Cement - India
- Ambuja Cements Ltd - India
- Oldendorff Carriers - Singapore
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- GAC Shipping (India) Pvt Ltd
- PetroVietnam Power Coal Import and Supply Company
- Orica Mining Services - Indonesia
- Borneo Indobara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- South Luzon Thermal Energy Corporation
- Sree Jayajothi Cements Limited - India
- Goldman Sachs - Singapore
- PowerSource Philippines DevCo
- Straits Asia Resources Limited - Singapore
- Kumho Petrochemical, South Korea
- Gujarat Mineral Development Corp Ltd - India
- LBH Netherlands Bv - Netherlands
- Toyota Tsusho Corporation, Japan
- Indogreen Group - Indonesia
- Salva Resources Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Georgia Ports Authority, United States
- San Jose City I Power Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Heidelberg Cement - Germany
- Videocon Industries ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Thiess Contractors Indonesia
- Power Finance Corporation Ltd., India
- Energy Development Corp, Philippines
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- SMC Global Power, Philippines
- ICICI Bank Limited - India
- Maheswari Brothers Coal Limited - India
- Indo Tambangraya Megah - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement PLC, Thailand
- Maharashtra Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- International Coal Ventures Pvt Ltd - India
- Xindia Steels Limited - India
- Singapore Mercantile Exchange
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- Ceylon Electricity Board - Sri Lanka
- Mercuria Energy - Indonesia
- VISA Power Limited - India
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Central Java Power - Indonesia
- Merrill Lynch Commodities Europe
- Offshore Bulk Terminal Pte Ltd, Singapore
- MS Steel International - UAE
- Cigading International Bulk Terminal - Indonesia
- Vedanta Resources Plc - India
- Sarangani Energy Corporation, Philippines
- Coal and Oil Company - UAE
- Agrawal Coal Company - India
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Lanco Infratech Ltd - India
- Latin American Coal - Colombia
- Energy Link Ltd, New Zealand
- Planning Commission, India
- Chamber of Mines of South Africa
- Indonesian Coal Mining Association
- Petrochimia International Co. Ltd.- Taiwan
- Minerals Council of Australia
- IHS Mccloskey Coal Group - USA
- Banpu Public Company Limited - Thailand
- Ministry of Finance - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Samtan Co., Ltd - South Korea
- The University of Queensland
- European Bulk Services B.V. - Netherlands
- Eastern Coal Council - USA
- Karbindo Abesyapradhi - Indoneisa
- Independent Power Producers Association of India
- Global Business Power Corporation, Philippines
- Economic Council, Georgia
- The State Trading Corporation of India Ltd
- Globalindo Alam Lestari - Indonesia
- Bangladesh Power Developement Board
- Essar Steel Hazira Ltd - India
- Sojitz Corporation - Japan
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- New Zealand Coal & Carbon
- Thai Mozambique Logistica
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- Neyveli Lignite Corporation Ltd, - India
- Barasentosa Lestari - Indonesia
- PTC India Limited - India
- Meenaskhi Energy Private Limited - India
- Baramulti Group, Indonesia
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- ASAPP Information Group - India
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Kapuas Tunggal Persada - Indonesia
- Global Coal Blending Company Limited - Australia
- Madhucon Powers Ltd - India
- Uttam Galva Steels Limited - India
- SMG Consultants - Indonesia
- Tata Chemicals Ltd - India
- Indian Energy Exchange, India
- Coalindo Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bharathi Cement Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Indian Oil Corporation Limited
- Rashtriya Ispat Nigam Limited - India
- Central Electricity Authority - India
- Makarim & Taira - Indonesia
- Simpson Spence & Young - Indonesia
- Sical Logistics Limited - India
- Bhatia International Limited - India
- The Treasury - Australian Government
- Bukit Makmur.PT - Indonesia
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