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.
|
|
Friday, 19 July 13
U.S.COAL PRODUCTION TOTALED APPROXIMATELY 19.60 MMST WEEK ENDED JULY 13
COALspot.com – United states the world’s second largest coal producer produced totaled approximately 19.60 million short tons (mmst) of ...
Friday, 19 July 13
TNPL IS LOOKING FOR 300 K MT OF 6000 GAD COAL FOR FIVE MONTH
COALspot.com - Tamil Nadu Newsprint & Papers Ltd. , an Indian paper maker, is seeking 300,000 metric tons ± 5% (In 5 shipments about 60,0 ...
Thursday, 18 July 13
3RD ANNUAL FLOATING TERMINALS, INDONESIA
Commercial applications for offshore transshipment facilities
Floating Terminal solutions are increasingly being deployed by miners, independent ...
Thursday, 18 July 13
THE CAPE MARKET APPEARS TO BE HOLDING FIRM - FEARNLEYS AS
Handy
In the Pacific, market maintained similar levels during the week. There is several Indo coal orders in the market, ships passing Singapore fi ...
Thursday, 18 July 13
DRY BULK MARKETS RETAINS RECENT GAINS, MOVES SIDEWAYS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has kept on moving sideways this week, as evidenced by the latest trends of the industry's benchmark, the Baltic Dry Index (BDI ...
|
|
|
Showing 4201 to 4205 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Pendopo Energi Batubara - Indonesia
- Economic Council, Georgia
- Semirara Mining Corp, Philippines
- IEA Clean Coal Centre - UK
- Borneo Indobara - Indonesia
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- London Commodity Brokers - England
- PetroVietnam Power Coal Import and Supply Company
- Thiess Contractors Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- TNB Fuel Sdn Bhd - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- Indian Oil Corporation Limited
- Sarangani Energy Corporation, Philippines
- Eastern Energy - Thailand
- Leighton Contractors Pty Ltd - Australia
- VISA Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Sindya Power Generating Company Private Ltd
- Bhatia International Limited - India
- Coalindo Energy - Indonesia
- Mintek Dendrill Indonesia
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- CNBM International Corporation - China
- Madhucon Powers Ltd - India
- Thai Mozambique Logistica
- Global Business Power Corporation, Philippines
- The Treasury - Australian Government
- Miang Besar Coal Terminal - Indonesia
- Kaltim Prima Coal - Indonesia
- Australian Coal Association
- Anglo American - United Kingdom
- Bukit Makmur.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- ASAPP Information Group - India
- Kumho Petrochemical, South Korea
- Dalmia Cement Bharat India
- GN Power Mariveles Coal Plant, Philippines
- Parry Sugars Refinery, India
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Indonesian Coal Mining Association
- Bukit Baiduri Energy - Indonesia
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- Holcim Trading Pte Ltd - Singapore
- Rio Tinto Coal - Australia
- Power Finance Corporation Ltd., India
- Gujarat Mineral Development Corp Ltd - India
- Kepco SPC Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Karbindo Abesyapradhi - Indoneisa
- The University of Queensland
- Merrill Lynch Commodities Europe
- Aboitiz Power Corporation - Philippines
- Therma Luzon, Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Chamber of Mines of South Africa
- Savvy Resources Ltd - HongKong
- Price Waterhouse Coopers - Russia
- Bangladesh Power Developement Board
- Jaiprakash Power Ventures ltd
- Independent Power Producers Association of India
- Maheswari Brothers Coal Limited - India
- Orica Australia Pty. Ltd.
- Globalindo Alam Lestari - Indonesia
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- European Bulk Services B.V. - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Lanco Infratech Ltd - India
- GMR Energy Limited - India
- ICICI Bank Limited - India
- OPG Power Generation Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Deloitte Consulting - India
- Mercuria Energy - Indonesia
- Agrawal Coal Company - India
- Renaissance Capital - South Africa
- Central Electricity Authority - India
- LBH Netherlands Bv - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Vijayanagar Sugar Pvt Ltd - India
- Baramulti Group, Indonesia
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- Xindia Steels Limited - India
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- Indogreen Group - Indonesia
- Sojitz Corporation - Japan
- Coal and Oil Company - UAE
- Essar Steel Hazira Ltd - India
- Videocon Industries ltd - India
- Altura Mining Limited, Indonesia
- Sical Logistics Limited - India
- Singapore Mercantile Exchange
- SN Aboitiz Power Inc, Philippines
- Marubeni Corporation - India
- Latin American Coal - Colombia
- Malabar Cements Ltd - India
- Carbofer General Trading SA - India
- Alfred C Toepfer International GmbH - Germany
- Georgia Ports Authority, United States
- Coastal Gujarat Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Interocean Group of Companies - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- International Coal Ventures Pvt Ltd - India
- PowerSource Philippines DevCo
- Star Paper Mills Limited - India
- Siam City Cement - Thailand
- Gujarat Sidhee Cement - India
- Meenaskhi Energy Private Limited - India
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- Central Java Power - Indonesia
- McConnell Dowell - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Energy Link Ltd, New Zealand
- Intertek Mineral Services - Indonesia
- Mercator Lines Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Energy Development Corp, Philippines
- Attock Cement Pakistan Limited
- Ambuja Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Barasentosa Lestari - Indonesia
- South Luzon Thermal Energy Corporation
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PTC India Limited - India
- Directorate Of Revenue Intelligence - India
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Australian Commodity Traders Exchange
- Toyota Tsusho Corporation, Japan
- Sree Jayajothi Cements Limited - India
- Riau Bara Harum - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bhushan Steel Limited - India
- Larsen & Toubro Limited - India
- Formosa Plastics Group - Taiwan
- Kartika Selabumi Mining - Indonesia
- Cement Manufacturers Association - India
- Commonwealth Bank - Australia
- Bayan Resources Tbk. - Indonesia
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- Tamil Nadu electricity Board
- Goldman Sachs - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Bhoruka Overseas - Indonesia
- Jindal Steel & Power Ltd - India
- Kideco Jaya Agung - Indonesia
- India Bulls Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- SMG Consultants - Indonesia
- Indika Energy - Indonesia
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Tata Chemicals Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- Ministry of Finance - Indonesia
- Straits Asia Resources Limited - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Karaikal Port Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Romanian Commodities Exchange
- Kalimantan Lumbung Energi - Indonesia
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- Heidelberg Cement - Germany
- Grasim Industreis Ltd - India
- GVK Power & Infra Limited - India
- Aditya Birla Group - India
- Meralco Power Generation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Rashtriya Ispat Nigam Limited - India
- Petron Corporation, Philippines
- Posco Energy - South Korea
|
| |
| |
|
