We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 30 December 14
INDIA INC TO BENEFIT AS IMPORTED COAL PRICES SET TO FALL - RAHUL PRITHIANI
The Hindu: India‘s coal import volumes are set to rise by over 30 per cent over the next two years to 214 million tonnes in 2015-16, as domestic supply falls short of surging demand.
However, globally, the situation is just the reverse. Severe oversupply with few takers will drag down prices of both thermal and coking coal by about 25 per cent. This will slash fuel costs and support the profitability of India Inc. Lower prices will also cap India’s coal import bill, unlike a 17 per cent annual growth witnessed over the last five years.
Supply soars
Miners in major coal exporting countries like Indonesia and Australia have significantly ramped up investments over the past five years, anticipating steady off take from major importers such as India and China. For example, coal mining investments in Australia are estimated to have doubled to about $50 billion over 2009 to 2013 from about $25 billion over 2003 to 2008. Moreover, domestic coal supply in China is also likely to increase as its railway capacity for hauling coal expands by nearly one-third to three billion tonne by 2020. This will ease transportation bottlenecks in that country.
Thus, while coal supplies will grow, there are likely to be few takers.
Even as miners stack up supplies, off take by major consumers including China, the U.S. and Europe is set to post a muted rise. Weak GDP growth, a gradual shift to cleaner fuels and rising energy efficiencies will curb demand.
The most telling fact is that China, the world’s largest importer of coal, has placed import curbs, will further restrict demand. Over the last three months, it has banned imports of low-grade coal, while imposing import duties on both thermal (six per cent) and coking coal (three per cent). Global economic weakness and China’s measures to move away from an investment-led growth model will also halve the growth in coking coal importsover the next five years.
Thus, oversupply in the global coal market, along with weakening currencies in exporting countries, is expected to drag down thermal and coking coal prices by 25 per cent approximately over the next two years to $65 per tonne and $115 per tonne by 2015, respectively.
Advantage India
For India, which has scarce domestic energy resources, the above changing dynamics certainly bode well. India’s coal import volumes are expected to rise by 33 per cent over the next two years, as domestic production lags demand. In such a scenario, falling global coal prices will help India Inc.
In the power sector, projects running on imported coal — including that of Tata Power, Adani Power and Essar Power — will benefit the most from sliding coal prices. These projects have incurred huge losses since 2012-13 when Indonesian coal prices almost doubled following a change in regulations. However, with imported coal prices plummeting, returns of such projects are expected to improve. As per our analysis, for a project operating on imported coal, even a one per cent fall in fuel costs will drive up equity returns by 25 basis points.
Even power projects based on domestic coal will benefit, as they can increase blending of imported coal and boost utilisation rates. In particular, plant-load factors (PLFs) of post-2009 power projects, which languished at just 51 per cent in 2013-14, will improve gradually.
Similarly, input costs for cement and metal manufacturers will decline, supporting their profitability. For cement players, reliance on imported coal has gradually risen — reaching 30-35 per cent of total coal consumption in 2013-14, as the power sector was prioritised for domestic coal supply. As demand growth slowed and operating costs rose, the industry’s operating margins fell to 15 per cent in 2013-14 from 28 per cent in 2009-10. Therefore, falling imported coal prices, will reduce cost pressures for the sector through lower fuel costs, which will decline by 3-4 per cent in 2014-15. In particular, cement plants, which have higher reliance on coal imports, will witness a much sharper reduction in fuel costs, as imported coal prices are set to fall by 15-17 per cent in 2014-15.
The decline in global coking coal prices is good news even for steelmakers beset by muted demand and global overcapacity. With good-quality domestic supply being scarce, Indian steelmakers import nearly 70 per cent of their coking coal requirements and coal accounts for 30 per cent of their manufacturing costs. Thus, a sharp decline in global coking coal prices will drag down operating costs by 6-8 per cent in 2014-15 and thereby support profitability.
There are also some macroeconomic advantages. Most importantly, despite the rise in coal import (volumes), the value (or the import bill) will only rise marginally at a CAGR of one per cent over the next two years. This contrasts sharply vis-à-vis the past 5 years, when the bill had risen at a 17 per cent CAGR to Rs.888 billion (approximately US$ 13,950,428,156).
The author is Director, CRISIL.
Source: The Hindu
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 12 January 15
SHIPPING - CHALLENGES AND RESOLUTIONS - EVA TZIMA
Last year has without a doubt been another challenging one both for both our industry and our country. As Greece is currently dominated by election ...
Sunday, 11 January 15
BDI DECLINED 8% ON WEEK; BCI LOST 31%
COALspot.com: The BDI continued its decline in the first week of this year or lost 8 pct week over week. The BDI was closed at 709 points whi ...
Friday, 09 January 15
U.S. EASTERN SPOT STEAM COAL PRICES FELL IN 2014; ROSE IN WEST - EIA
U.S. Eastern spot steam coal prices declined in 2014 compared to 2013 levels because of a decline in steam coal exports.
According to U.S. Ene ...
Friday, 09 January 15
WEEKLY U.S. COAL PRODUCTION UP AN ESTIMATED 2.2% Y-O-Y
COALspot.com – United States the world's one of the largest coal producers, produced approximately 17.6 million short tons (mmst) of coal ...
Thursday, 08 January 15
INDONESIA PRESSES ON WITH HIGHER COAL ROYALTY FEE TO BOOST STATE REVENUE - JG
The Indonesian government is pressing on with its plan to raise the royalty charged to coal miners in order to increase state revenue, but the move ...
|
|
|
Showing 3266 to 3270 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Meralco Power Generation, Philippines
- Dalmia Cement Bharat India
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- Anglo American - United Kingdom
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Star Paper Mills Limited - India
- Renaissance Capital - South Africa
- Ceylon Electricity Board - Sri Lanka
- Petrochimia International Co. Ltd.- Taiwan
- Therma Luzon, Inc, Philippines
- Mercator Lines Limited - India
- Sical Logistics Limited - India
- Jindal Steel & Power Ltd - India
- Oldendorff Carriers - Singapore
- Bangladesh Power Developement Board
- Banpu Public Company Limited - Thailand
- Aboitiz Power Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- Bukit Baiduri Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Straits Asia Resources Limited - Singapore
- Georgia Ports Authority, United States
- Directorate General of MIneral and Coal - Indonesia
- Indogreen Group - Indonesia
- Indika Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Chamber of Mines of South Africa
- Cigading International Bulk Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Maheswari Brothers Coal Limited - India
- Bulk Trading Sa - Switzerland
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- The State Trading Corporation of India Ltd
- Xindia Steels Limited - India
- CNBM International Corporation - China
- Vijayanagar Sugar Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- CIMB Investment Bank - Malaysia
- Globalindo Alam Lestari - Indonesia
- Australian Coal Association
- Orica Mining Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Petron Corporation, Philippines
- Australian Commodity Traders Exchange
- Romanian Commodities Exchange
- San Jose City I Power Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Savvy Resources Ltd - HongKong
- Heidelberg Cement - Germany
- Kobexindo Tractors - Indoneisa
- European Bulk Services B.V. - Netherlands
- Coal and Oil Company - UAE
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- Bharathi Cement Corporation - India
- PTC India Limited - India
- SMC Global Power, Philippines
- Energy Link Ltd, New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Price Waterhouse Coopers - Russia
- Tata Chemicals Ltd - India
- Latin American Coal - Colombia
- Bukit Makmur.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Global Business Power Corporation, Philippines
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- Simpson Spence & Young - Indonesia
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Standard Chartered Bank - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- GVK Power & Infra Limited - India
- Parry Sugars Refinery, India
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Agrawal Coal Company - India
- Indian Energy Exchange, India
- Karaikal Port Pvt Ltd - India
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- Global Green Power PLC Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Tamil Nadu electricity Board
- Riau Bara Harum - Indonesia
- Port Waratah Coal Services - Australia
- Ministry of Finance - Indonesia
- The University of Queensland
- Vizag Seaport Private Limited - India
- Trasteel International SA, Italy
- Pipit Mutiara Jaya. PT, Indonesia
- Krishnapatnam Port Company Ltd. - India
- GMR Energy Limited - India
- Holcim Trading Pte Ltd - Singapore
- White Energy Company Limited
- Bhatia International Limited - India
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- Central Java Power - Indonesia
- Altura Mining Limited, Indonesia
- Eastern Energy - Thailand
- Coastal Gujarat Power Limited - India
- Madhucon Powers Ltd - India
- Global Coal Blending Company Limited - Australia
- Power Finance Corporation Ltd., India
- Ind-Barath Power Infra Limited - India
- SMG Consultants - Indonesia
- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
- Coalindo Energy - Indonesia
- Energy Development Corp, Philippines
- Ministry of Mines - Canada
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- Jaiprakash Power Ventures ltd
- Medco Energi Mining Internasional
- Edison Trading Spa - Italy
- Videocon Industries ltd - India
- Carbofer General Trading SA - India
- Planning Commission, India
- Sojitz Corporation - Japan
- Minerals Council of Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- Commonwealth Bank - Australia
- GAC Shipping (India) Pvt Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Mercuria Energy - Indonesia
- Attock Cement Pakistan Limited
- Semirara Mining Corp, Philippines
- Kaltim Prima Coal - Indonesia
- ICICI Bank Limited - India
- Sakthi Sugars Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement - Thailand
- SN Aboitiz Power Inc, Philippines
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Antam Resourcindo - Indonesia
- Grasim Industreis Ltd - India
- Africa Commodities Group - South Africa
- Vedanta Resources Plc - India
- Maharashtra Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- International Coal Ventures Pvt Ltd - India
- Larsen & Toubro Limited - India
- Deloitte Consulting - India
- The Treasury - Australian Government
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- Sree Jayajothi Cements Limited - India
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Indonesian Coal Mining Association
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Neyveli Lignite Corporation Ltd, - India
- McConnell Dowell - Australia
- London Commodity Brokers - England
- Mjunction Services Limited - India
- Miang Besar Coal Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Marubeni Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Singapore Mercantile Exchange
- Kartika Selabumi Mining - Indonesia
- Manunggal Multi Energi - Indonesia
- Chettinad Cement Corporation Ltd - India
- Cement Manufacturers Association - India
- Metalloyd Limited - United Kingdom
- Economic Council, Georgia
- Baramulti Group, Indonesia
- Mintek Dendrill Indonesia
- Central Electricity Authority - India
- Semirara Mining and Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Gujarat Sidhee Cement - India
- India Bulls Power Limited - India
- Kumho Petrochemical, South Korea
- Samtan Co., Ltd - South Korea
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- Lanco Infratech Ltd - India
- Uttam Galva Steels Limited - India
- Indian Oil Corporation Limited
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- MS Steel International - UAE
- Jorong Barutama Greston.PT - Indonesia
- Malabar Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Bhushan Steel Limited - India
- Directorate Of Revenue Intelligence - India
- Sarangani Energy Corporation, Philippines
- Interocean Group of Companies - India
|
| |
| |
|
