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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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Saturday, 01 August 20
SHIP SHAPE - OUCH: FIS
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Saturday, 01 August 20
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Oil demand in Asia Pacific might be expected to plunge 1.8m barrels per day (bpd) this year, but there are still strong prospects for growth over t ...
Friday, 31 July 20
SHORT-TERM IMPACT ON THE CHEMICAL SHIPPING MARKET IF THE INDIA-CHINA DISPUTE ESCALATES - DREWRY
Due to the India-China dispute, the threat of deteriorating trade relations between the two countries has become real. Meanwhile, we expect freight ...
Friday, 31 July 20
PANAMAX: THE PERIOD MARKET REMAINS QUIET WITH FEW FIXTURES REPORTED - FEARNLEYS
Capesize
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Friday, 31 July 20
PANDEMIC SENDING SOUTH AFRICAN COAL INDUSTRY TO EARLIER GRAVE - IEEFA
Could South Africa’s coal export industry, one of the largest in the world, be about to take a severe hit from the coronavirus?
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- Wilmar Investment Holdings
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- Riau Bara Harum - Indonesia
- Siam City Cement PLC, Thailand
- Coastal Gujarat Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Romanian Commodities Exchange
- Timah Investasi Mineral - Indoneisa
- Lanco Infratech Ltd - India
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- SMG Consultants - Indonesia
- Savvy Resources Ltd - HongKong
- Karbindo Abesyapradhi - Indoneisa
- OPG Power Generation Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- McConnell Dowell - Australia
- India Bulls Power Limited - India
- The University of Queensland
- Ministry of Finance - Indonesia
- Toyota Tsusho Corporation, Japan
- Makarim & Taira - Indonesia
- Baramulti Group, Indonesia
- Kobexindo Tractors - Indoneisa
- Ind-Barath Power Infra Limited - India
- Standard Chartered Bank - UAE
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- Central Electricity Authority - India
- Bukit Makmur.PT - Indonesia
- Parliament of New Zealand
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- PetroVietnam Power Coal Import and Supply Company
- Tamil Nadu electricity Board
- Kideco Jaya Agung - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- IHS Mccloskey Coal Group - USA
- Metalloyd Limited - United Kingdom
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- Indonesian Coal Mining Association
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- Deloitte Consulting - India
- Sakthi Sugars Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Barasentosa Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Singapore Mercantile Exchange
- Energy Development Corp, Philippines
- Parry Sugars Refinery, India
- Medco Energi Mining Internasional
- Rashtriya Ispat Nigam Limited - India
- Commonwealth Bank - Australia
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining and Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- LBH Netherlands Bv - Netherlands
- Attock Cement Pakistan Limited
- VISA Power Limited - India
- Planning Commission, India
- Madhucon Powers Ltd - India
- Chamber of Mines of South Africa
- European Bulk Services B.V. - Netherlands
- Posco Energy - South Korea
- Mjunction Services Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Electricity Generating Authority of Thailand
- Sinarmas Energy and Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Tata Chemicals Ltd - India
- The Treasury - Australian Government
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- ICICI Bank Limited - India
- Indogreen Group - Indonesia
- Holcim Trading Pte Ltd - Singapore
- South Luzon Thermal Energy Corporation
- Meralco Power Generation, Philippines
- Kumho Petrochemical, South Korea
- Wood Mackenzie - Singapore
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Renaissance Capital - South Africa
- Global Business Power Corporation, Philippines
- New Zealand Coal & Carbon
- Goldman Sachs - Singapore
- Gujarat Sidhee Cement - India
- SN Aboitiz Power Inc, Philippines
- Bharathi Cement Corporation - India
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Thai Mozambique Logistica
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- Aboitiz Power Corporation - Philippines
- Bangladesh Power Developement Board
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Pendopo Energi Batubara - Indonesia
- Georgia Ports Authority, United States
- Oldendorff Carriers - Singapore
- Iligan Light & Power Inc, Philippines
- Dalmia Cement Bharat India
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jaiprakash Power Ventures ltd
- Sree Jayajothi Cements Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Cement Manufacturers Association - India
- Directorate General of MIneral and Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- White Energy Company Limited
- Mintek Dendrill Indonesia
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Mercuria Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- Samtan Co., Ltd - South Korea
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- Central Java Power - Indonesia
- Sojitz Corporation - Japan
- Marubeni Corporation - India
- Manunggal Multi Energi - Indonesia
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Kaltim Prima Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Coal and Oil Company - UAE
- Bhushan Steel Limited - India
- Chettinad Cement Corporation Ltd - India
- SMC Global Power, Philippines
- Indian Energy Exchange, India
- PNOC Exploration Corporation - Philippines
- Heidelberg Cement - Germany
- Petron Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- Global Coal Blending Company Limited - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Intertek Mineral Services - Indonesia
- Independent Power Producers Association of India
- Orica Mining Services - Indonesia
- IEA Clean Coal Centre - UK
- Offshore Bulk Terminal Pte Ltd, Singapore
- Africa Commodities Group - South Africa
- Merrill Lynch Commodities Europe
- Sindya Power Generating Company Private Ltd
- ASAPP Information Group - India
- Interocean Group of Companies - India
- Gujarat Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Orica Australia Pty. Ltd.
- GVK Power & Infra Limited - India
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- PowerSource Philippines DevCo
- Straits Asia Resources Limited - Singapore
- Borneo Indobara - Indonesia
- Indika Energy - Indonesia
- Australian Commodity Traders Exchange
- Neyveli Lignite Corporation Ltd, - India
- GN Power Mariveles Coal Plant, Philippines
- Sical Logistics Limited - India
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Ministry of Mines - Canada
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- Larsen & Toubro Limited - India
- Price Waterhouse Coopers - Russia
- London Commodity Brokers - England
- PTC India Limited - India
- Eastern Energy - Thailand
- Economic Council, Georgia
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Banpu Public Company Limited - Thailand
- Eastern Coal Council - USA
- Bayan Resources Tbk. - Indonesia
- Australian Coal Association
- Simpson Spence & Young - Indonesia
- Xindia Steels Limited - India
- Directorate Of Revenue Intelligence - India
- MS Steel International - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kepco SPC Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
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