COALspot.com keeps you connected across the coal world
  • JUNE 2020 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 52.98 A TON

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, 22 June 11
BOOMING INDONESIAN COAL EXPORTS - BLEEDING INDIAN POWER INDUSTRY


COALspot.com - Indonesia shipped 28.962 Million tons of coal  in May 2011, up by 15.86 percent compared to April export of about  24.995 million tons, Indonesian coal industry sources said. 56.30 percent up year-to year.

China's Indonesian coal imports have jumped up drastically in May by 2.105 MMt compared to its April imports. Chinese coal imports from Indonesia in May was higher than India's imports from Indonesia. India has imported 6.368 million tons in May where’s China has imported about 8.21 MMt which was 1.841 million MT higher. 

India has lost its largest Indonesian coal importer status to China first time in the last five months. India was the largest Indonesian coal importer since January 2011 followed by China and other Asian countries. China is expected to import more coal in this month and coming months to increase energy supplies to prevent a worsening of its  summer power shortage in seven years.

According to analyst, China faces a power shortfall, and that may extend to 40GW this northern summer, surpassing its 2004 power shortfall. China’s benchmark power-station coal prices rose to the highest since October 2008 as summer electricity demand increased in the world’s fastest-growing major economy, as quoted by Bloomberg its report early this week.

According to Indian coal minister,  Indian coal imports may be at 250 million tons per annum by 2016. Coal imports is unavoidable option for Indian utilities due to non availability of  economically viable coal from domestic mines.  However, according to Indian UMPPs, due to Indonesian government regulation that forces all coal producers must sell coal at government declared monthly prices, would cost them at least US$ 30 per ton higher than they previously budgeted.

"Implementation of this proposed new rule  by the Indonesian government ( I.e., the law mandates all coal producers to sell coal at government declared prices) will adversely impact all existing and future imported coal-based power plants in India, including UMPPs," Ashok Khurana, the Director General of the Association of Power Producers, said as reported by an Indian paper.

“When Indian companies invest in Indonesia, they tend to have the intent to sell coal at cost, so that Indonesian business unit remained at no or negligible profits. Taking a holistic view, however, the cash flows in an integrated Indonesian coal mining and Indian power generation unit after this regulation will continue to be similar, except that income taxes will be paid in Indonesia, and the cash flows will need to be brought on the books on Indian power project after paying taxes in Indonesia through appropriate and innovative business structuring,” said Dipesh Dipu, director, at Deloitte, mydigitalfc reported.


Indonesia has introduced bench mark pricing mechanism for its coal  since February 2010, and it has implemented for the domestic supplies as well export market. The pricing was done on very transparent way using four internationally acceptable coal indices to generate monthly Indonesian coal reference prices for about 62 types of coal including 8 types of bench mark qualities.

The regulation also requires miners to report sales volumes, prices, and buyers every month to the government, allowing it to ensure that the rules are being followed. Violations can lead to revocation of mining permits. The price benchmark aims to prevent firms selling coal to affiliates at low prices to avoid taxes that hurts Indonesia's efforts to collect revenues from its massive commodity exports.

Ministry of Energy and Mineral Resources of Indonesia has set the June 2011 Indonesian Coal Reference Price for thermal coal at US$ 119.03 per ton per ton, which was 1.20 percent higher than May 2011 price of US$ US$ 117.61. Assessment basis of coal price reference was calculated considering coal with GCV (GAR)  6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur (arb) 0.8%, Ash Content (arb) 15.00% and  delivery free on Board (FOB) Vessel basis  and applicable for spot contract, delivery between 1 – 30 June 2011.

Indonesian bituminous coal of 5,500 kcal/kg NAR was offered at between $ 108 - 110 a ton, FOB vessel basis this week, slightly up from last week price, traders said.

According to Indian power industry sources opined that  Indian UMPPs ( ultra-mega power project) suddenly caught in between as the concept of UMPP was implemented 4 to 5 years back. The large scale industrial houses in India  have bided and secured UMPP licenses based on the open market prices /long term coal contracts from Indonesian producers (I.e., pre regulated Indonesian market). Now that Indonesian coal reference price mechanism is in place all the UMPP's are seeking Indian government’s assistance in revising the Power Tariff of UMPP.

Now, the bankers who have funded the projects are bit worried about the rising Indonesian coal costs versus the power sales price which was pegged at pre-regulation prices, Indian banking industry sources said. Now, we need to see whether Indian Government allows the UMPPs to revise the power sale prices based on Indonesian coal reference price mechanism.

As such India cement and steel industries were used to buy coal from South Africa and Australia on index base pricing mechanism since last four to five years. in view of the attractive profit margin levels, entire Indonesian coal producers migrated to Index based pricing for coal contracts . “Where's still many of the Indian utilities and private consumers are still procuring the coal on firm delivered basis. This concept is creating lot of confusion in the Indian trade circles” an Indian trader commented.

77.12 percent of total coal exports in May goes to China, India, South Korea, Japan and Taiwan respectively.

The coal export information within this article is provided by coalspot.com on an "as is" and "as available” basis. All details about, given in good faith, without guarantee. While every care has been taken to ensure the accuracy of information furnished in this article. COALspot.com shall be obliged if errors / omissions are brought to its notice for carrying out corrections in this article.



If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Monday, 13 July 20
PANAMAX: A TUMULTUOUS WEEK IN THE PANAMAX MARKET ENSURED ALL MARKETS GAINED VALUE ON THE WEEK - BALTIC BRIEFING
Capesize This week witnessed the dreaded correction in the Capesize market, with the time charter average shedding almost 18 per cent to close ...


Friday, 10 July 20
CHINA'S BENCHMARK POWER COAL PRICE EDGES UP - XINHUA
China’s benchmark power coal price rose slightly during the past week.   The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...


Friday, 10 July 20
GLOBAL SHIPPING EARNINGS FORECAST CUT AS SUPPLY SET TO OUTSTRIP DEMAND - MOODY'S
EBITDA forecast worsens, keeping outlook negative. We now expect the aggregate EBITDA of rated shipping companies to fall by around 16%-18% in 2020 ...


Friday, 10 July 20
SLOW RECOVERY IN TANKER RATES TO WEIGH ON BUANA LINTAS LAUTAN - FITCH RATINGS
Fitch Ratings believes that international tanker rates are likely improve after their sharp fall since May 2020, albeit at a slow pace. The weaknes ...


Wednesday, 08 July 20
MARKET INSIGHT - INTERMODAL
During the previous month, the dry bulk market witnessed an impressive increase in the BDI index that has reached 1800 points from 500 with a clear ...


   1 2 3 4 5   
Showing 1 to 5 news of total 5995
News by Category
Popular News
 
Total Members : 26,981
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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