We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 08 October 13
CHINA: INTENSE COMPETITION AMONG DOMESTIC COAL MINERS AS 2013 IMPORT DEMAND REMAINS STRONG - WOOD MACKENZIE
 Prices will not fall under RMB500/t or risk supply availability to the coastal market
Despite China's lower economic growth, Wood Mackenzie says that import demand will still meet previous high expectations, although overall demand growth will be lower. This is due to lower seaborne coal prices compared to domestic coal prices in coastal China. As such, domestic producers are competing for market share by lowering prices in spite of negative margins. This explains the recent continuous drop in Chinese coal prices. However, Wood Mackenzie says that coastal China coal prices will be supported at *RMB500 per tonne (t) as at this price level 40% of domestic supply operates at negative margins.
China's gross domestic product (GDP) growth has slowed from 9.3% to 7.5% from 2011 to 2013. As a result, power demand growth has slowed in China and coal demand in coastal provinces has remained flat, staying at 2011 levels of 1.2 billion tonnes(Bt). In contrast, seaborne demand increased rapidly - This year, Wood Mackenzie expects China to import 235Mt of thermal and 67Mt of metallurgical coal, up from 168Mt and 31Mt respectively in 2011. This translates to a growth in share of seaborne imports into coastal China from 17% to about 25% between 2011 to 2013.
Wood Mackenzie's Senior Analyst Coal Market Research, Mr. Prakash Sharma says, "The trend of increased coal imports has been aided by weak coal prices in the international market. This means that Chinese coal import demand is almost entirely driven by the competitiveness of imported versus domestic supply. As such, large Chinese miners are adopting volume strategy by producing more to bring down operating costs and pricing lower to maintain market share."
These measures will hold market share in the short-term but may be counter-effective if prices fall too low in coastal China. Therefore we believe prices find a floor at RMB500/t. Small to medium sized domestic players will be most affected due to relatively high fixed labour costs and mine safety expenses in China. Large producers such as Shenhua and China Coal, who have resorted to aggressive pricing, contribute almost 50% of China's domestic coal production. The remainder 50% comes from the small to medium size miners.
Rohan Kendall, Senior Analyst for Coal Supply Research, says, "At RMB 500/t, we estimate that 40% of China's thermal coal production will produce at negative margins. Small to medium sized producers operating at negative margins, particularly those producing low-energy coal, face a real risk of mine closures. The situation may also trigger further consolidation of small loss-making mines in China."
Summarizing, Mr Sharma says, "The 40% of domestic production producing at negative margins equates to about 150% of the size of the current seaborne market. Full replacement volumes cannot feasibly be sourced from imports without creating a price response that will actually incentivise domestic miners to remain in production. Therefore, we believe prices will be supported above RMB 500/t, turning the tide on the current price trend."
*All prices refer to benchmark FOB Qinghuangdao Thermal coal price (5500 kcal/kg NAR basis) inclusive of 17% VAT.
Editor's notes:
Wood Mackenzie is the most comprehensive source of knowledge about the world's energy and metals industries. We analyse and advise on every stage along the value chain - from discovery to delivery, and beyond - to provide clients with the commercial insight that makes them stronger. For more information visit: www.woodmac.com
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 31 July 13
COAL GASIFICATION
IBC’s Coal Gasification conference explores the opportunities for coal gasification investment and development in Asia.
With depleting dome ...
Wednesday, 31 July 13
SUPRAMAX : THE PACIFIC BASIN WAS MOVING ON A POSITIVE PATH - EVA TZIMA
COALspot.com: Cape - Despite holding their ground fairly well early on in the week, Capes in the Atlantic basin gave in to the mounting pressure fro ...
Tuesday, 30 July 13
HARD COAL ON THE WAY TO BECOMING THE WORLD'S MOST IMPORTANT ENERGY SOURCE - VDKI
Press Release : Hard coal continued to be the world’s fastest-growing fossil primary energy source in 2012. It covered about 28% of the world ...
Tuesday, 30 July 13
WIJAYA TRI UTAMA PURCHASES MICROCOAL TECHNOLOGIES' CLEAN COAL UPGRADING FACILITY
- First MCI commercial scale application of proprietary microwave technology to upgrade coal thermal output and reduce pollutants
- MicroCoal to re ...
Tuesday, 30 July 13
KOMIPO INVITES BIDS FOR 520,000 MT OF 5,700 KCAL/KG COAL ON NAR BASIS FOR H1, 2014
COALspot.com : Korea Midland Power Co., Ltd. has invited bids for 520,000 Metric Tons (MT) of coal with calorific value 5,700 kcal/kg on NAR basis f ...
|
|
|
Showing 4186 to 4190 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Deloitte Consulting - India
- Coal and Oil Company - UAE
- Mjunction Services Limited - India
- Essar Steel Hazira Ltd - India
- MS Steel International - UAE
- Antam Resourcindo - Indonesia
- Renaissance Capital - South Africa
- White Energy Company Limited
- Energy Development Corp, Philippines
- Oldendorff Carriers - Singapore
- The University of Queensland
- Aboitiz Power Corporation - Philippines
- Coalindo Energy - Indonesia
- Altura Mining Limited, Indonesia
- Aditya Birla Group - India
- London Commodity Brokers - England
- Karbindo Abesyapradhi - Indoneisa
- PNOC Exploration Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Indo Tambangraya Megah - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bhatia International Limited - India
- New Zealand Coal & Carbon
- Coastal Gujarat Power Limited - India
- Planning Commission, India
- Australian Coal Association
- Samtan Co., Ltd - South Korea
- Bayan Resources Tbk. - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Makarim & Taira - Indonesia
- Wilmar Investment Holdings
- Rashtriya Ispat Nigam Limited - India
- Baramulti Group, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Rio Tinto Coal - Australia
- Intertek Mineral Services - Indonesia
- San Jose City I Power Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Grasim Industreis Ltd - India
- Holcim Trading Pte Ltd - Singapore
- GVK Power & Infra Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Lanco Infratech Ltd - India
- Straits Asia Resources Limited - Singapore
- Central Java Power - Indonesia
- Minerals Council of Australia
- Bukit Makmur.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
- Kaltim Prima Coal - Indonesia
- Indian Oil Corporation Limited
- Sree Jayajothi Cements Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Sical Logistics Limited - India
- Maheswari Brothers Coal Limited - India
- Bhushan Steel Limited - India
- Larsen & Toubro Limited - India
- Bangladesh Power Developement Board
- Salva Resources Pvt Ltd - India
- Videocon Industries ltd - India
- Merrill Lynch Commodities Europe
- Krishnapatnam Port Company Ltd. - India
- Vizag Seaport Private Limited - India
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Ambuja Cements Ltd - India
- McConnell Dowell - Australia
- Jindal Steel & Power Ltd - India
- Sarangani Energy Corporation, Philippines
- Posco Energy - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Toyota Tsusho Corporation, Japan
- Port Waratah Coal Services - Australia
- Power Finance Corporation Ltd., India
- Australian Commodity Traders Exchange
- Indika Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Carbofer General Trading SA - India
- Indogreen Group - Indonesia
- The State Trading Corporation of India Ltd
- Global Business Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Anglo American - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Romanian Commodities Exchange
- CNBM International Corporation - China
- Directorate General of MIneral and Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- Ceylon Electricity Board - Sri Lanka
- Bhoruka Overseas - Indonesia
- Gujarat Sidhee Cement - India
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Latin American Coal - Colombia
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- Wood Mackenzie - Singapore
- Parry Sugars Refinery, India
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- CIMB Investment Bank - Malaysia
- Commonwealth Bank - Australia
- Karaikal Port Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Global Green Power PLC Corporation, Philippines
- Edison Trading Spa - Italy
- Ministry of Transport, Egypt
- The Treasury - Australian Government
- Heidelberg Cement - Germany
- Simpson Spence & Young - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chamber of Mines of South Africa
- TeaM Sual Corporation - Philippines
- Eastern Coal Council - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parliament of New Zealand
- Bharathi Cement Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Kapuas Tunggal Persada - Indonesia
- Bukit Baiduri Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Indonesian Coal Mining Association
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Eastern Energy - Thailand
- Star Paper Mills Limited - India
- ICICI Bank Limited - India
- OPG Power Generation Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Georgia Ports Authority, United States
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- Xindia Steels Limited - India
- Sojitz Corporation - Japan
- Asmin Koalindo Tuhup - Indonesia
- IEA Clean Coal Centre - UK
- Madhucon Powers Ltd - India
- Electricity Authority, New Zealand
- Independent Power Producers Association of India
- GN Power Mariveles Coal Plant, Philippines
- Orica Mining Services - Indonesia
- Ministry of Mines - Canada
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- Manunggal Multi Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- ASAPP Information Group - India
- Standard Chartered Bank - UAE
- LBH Netherlands Bv - Netherlands
- Siam City Cement PLC, Thailand
- Dalmia Cement Bharat India
- Central Electricity Authority - India
- Africa Commodities Group - South Africa
- Metalloyd Limited - United Kingdom
- Interocean Group of Companies - India
- Bahari Cakrawala Sebuku - Indonesia
- Trasteel International SA, Italy
- Timah Investasi Mineral - Indoneisa
- Malabar Cements Ltd - India
- Petron Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Indian Energy Exchange, India
- Sakthi Sugars Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Global Coal Blending Company Limited - Australia
- Binh Thuan Hamico - Vietnam
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- International Coal Ventures Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- Sinarmas Energy and Mining - Indonesia
- Borneo Indobara - Indonesia
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Ministry of Finance - Indonesia
- SMC Global Power, Philippines
- Thai Mozambique Logistica
- Therma Luzon, Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Agrawal Coal Company - India
- Kideco Jaya Agung - Indonesia
- Banpu Public Company Limited - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
|
| |
| |
|
