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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.
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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.
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Monday, 05 October 09
SOUTH AFRICAN COAL RISES ON INDIAN BUYING, DOMESTIC DEMAND
Bloomberg reported that, Prices for coal shipped from South Africa’s Richards Bay, site of the world’s largest export terminal for the f ...
Monday, 05 October 09
BANPU EYES INCREASE IN COAL OUTPUT
The Nation reported that, Banpu plans to boost its coal output to 23 million tonnes next year once production begins at the East Block of its Indomi ...
Monday, 05 October 09
COAL TRADING C&O TO INVEST $100 M NEXT YEAR
The Jakarta Post reported that, Coal and Oil (C&0) Group of India plans to invest up to US$100 million in Indonesia next year to acquire coal mi ...
Sunday, 04 October 09
INDONESIAN COAL EXCHANGE FOR PRICE BENCHMARKING IN OFFING
Reuters cited Mr Bob Kamandanu chairman of the Indonesian Coal Producers Association as saying that Indonesia plans to set up a coal exchange to cre ...
Sunday, 04 October 09
GRASIM TO CONSOLIDATE CEMENT BIZ
The Statesman reported that, India's largest cement producer Aditya Birla group today said it would consolidate its cement businesses by merging Gr ...
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Authority, New Zealand
- Rio Tinto Coal - Australia
- TNB Fuel Sdn Bhd - Malaysia
- TeaM Sual Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Petrochimia International Co. Ltd.- Taiwan
- Merrill Lynch Commodities Europe
- Sical Logistics Limited - India
- Australian Commodity Traders Exchange
- Grasim Industreis Ltd - India
- Baramulti Group, Indonesia
- Bhatia International Limited - India
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karaikal Port Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- GMR Energy Limited - India
- AsiaOL BioFuels Corp., Philippines
- Petron Corporation, Philippines
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- GAC Shipping (India) Pvt Ltd
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- Coastal Gujarat Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Eastern Energy - Thailand
- Goldman Sachs - Singapore
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- ASAPP Information Group - India
- Minerals Council of Australia
- Intertek Mineral Services - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Gujarat Sidhee Cement - India
- SN Aboitiz Power Inc, Philippines
- Borneo Indobara - Indonesia
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
- Wilmar Investment Holdings
- India Bulls Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Mines - Canada
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Commonwealth Bank - Australia
- Heidelberg Cement - Germany
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Simpson Spence & Young - Indonesia
- Port Waratah Coal Services - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- Orica Mining Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Directorate Of Revenue Intelligence - India
- Sojitz Corporation - Japan
- Maharashtra Electricity Regulatory Commission - India
- Kumho Petrochemical, South Korea
- Jorong Barutama Greston.PT - Indonesia
- Standard Chartered Bank - UAE
- Iligan Light & Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Makarim & Taira - Indonesia
- CNBM International Corporation - China
- Madhucon Powers Ltd - India
- Indika Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- MS Steel International - UAE
- CIMB Investment Bank - Malaysia
- Bangladesh Power Developement Board
- Carbofer General Trading SA - India
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Australian Coal Association
- Bukit Makmur.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Georgia Ports Authority, United States
- SMG Consultants - Indonesia
- Global Business Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Jaiprakash Power Ventures ltd
- Trasteel International SA, Italy
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Binh Thuan Hamico - Vietnam
- Power Finance Corporation Ltd., India
- Romanian Commodities Exchange
- Independent Power Producers Association of India
- Posco Energy - South Korea
- Wood Mackenzie - Singapore
- Sindya Power Generating Company Private Ltd
- Ceylon Electricity Board - Sri Lanka
- Chettinad Cement Corporation Ltd - India
- Semirara Mining Corp, Philippines
- Sakthi Sugars Limited - India
- Economic Council, Georgia
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Central Java Power - Indonesia
- Bayan Resources Tbk. - Indonesia
- Medco Energi Mining Internasional
- Planning Commission, India
- Karbindo Abesyapradhi - Indoneisa
- Jindal Steel & Power Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Barasentosa Lestari - Indonesia
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Ambuja Cements Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Cement Manufacturers Association - India
- European Bulk Services B.V. - Netherlands
- Siam City Cement - Thailand
- OPG Power Generation Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Singapore Mercantile Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Electricity Authority - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maheswari Brothers Coal Limited - India
- Marubeni Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Sinarmas Energy and Mining - Indonesia
- SMC Global Power, Philippines
- Coalindo Energy - Indonesia
- Energy Development Corp, Philippines
- PTC India Limited - India
- The State Trading Corporation of India Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Oldendorff Carriers - Singapore
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- Mjunction Services Limited - India
- Globalindo Alam Lestari - Indonesia
- Meralco Power Generation, Philippines
- GVK Power & Infra Limited - India
- Uttam Galva Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- Mercuria Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- New Zealand Coal & Carbon
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Formosa Plastics Group - Taiwan
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Savvy Resources Ltd - HongKong
- Antam Resourcindo - Indonesia
- The University of Queensland
- Kepco SPC Power Corporation, Philippines
- Deloitte Consulting - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Toyota Tsusho Corporation, Japan
- Vizag Seaport Private Limited - India
- Lanco Infratech Ltd - India
- Salva Resources Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Kobexindo Tractors - Indoneisa
- Manunggal Multi Energi - Indonesia
- ICICI Bank Limited - India
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- Bharathi Cement Corporation - India
- White Energy Company Limited
- Straits Asia Resources Limited - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Mercator Lines Limited - India
- Larsen & Toubro Limited - India
- Latin American Coal - Colombia
- Siam City Cement PLC, Thailand
- Dalmia Cement Bharat India
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- Samtan Co., Ltd - South Korea
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- Ministry of Transport, Egypt
- Orica Australia Pty. Ltd.
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- Kaltim Prima Coal - Indonesia
- Chamber of Mines of South Africa
- London Commodity Brokers - England
- Coal and Oil Company - UAE
- Indonesian Coal Mining Association
- LBH Netherlands Bv - Netherlands
- Bhushan Steel Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
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