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.
|
|
Wednesday, 07 January 15
FUEL EFFICIENT SHIPS MAKE LESS SENSE IN LOWER BUNKER PRICE MARKET, BUT FUEL COSTS ARE BOUND TO RISE AGAIN
The shipping industry entered 2015 on mixed emotions, as a relatively buoyant tanker market is met by a rather lackluster dry bulk market. Still, a ...
Wednesday, 07 January 15
2015 IS RIDDLED WITH CHALLENGES FOR THE SHIPPING SECTOR, MOST NOTABLY THE DRY BULK MARKET - HELLENIC SHIPPING NEWS
As the new year has now set foot for real, many are still looking to detect what’s in store for the various shipping markets, with the first ...
Tuesday, 06 January 15
SHIPPING MUST ADOPT CAN-DO ATTITUDE IN 2015 - MOORE STEPHENS
Shipping needs to adopt a can-do attitude in order to successfully meet the challenges which are likely to come its way in 2015.
Shipping part ...
Tuesday, 06 January 15
Q4' 15 FOB INDONESIA COAL SWAP CLOSED 1.81% HIGHER COMPARED TO Q1' 15 CLOSING
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 lost month on month and week over week.
The Q1 swap has lost US$ 0.74 (-1.51%) m ...
Tuesday, 06 January 15
FOB RICHARDS BAY COAL SWAPS LOST W-O-W AND M-O-M, SGX DATA SHOWS
COALspot.com: API 4 FOB Richards Bay Coal for delivery Q1' 2015 lost month on month and week over week.
The Q1 swap has lost US$ 3.52 (-5. ...
|
|
|
Showing 3271 to 3275 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- IEA Clean Coal Centre - UK
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Coal and Oil Company - UAE
- Sical Logistics Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- ASAPP Information Group - India
- GAC Shipping (India) Pvt Ltd
- Energy Link Ltd, New Zealand
- Directorate Of Revenue Intelligence - India
- Ministry of Transport, Egypt
- Electricity Authority, New Zealand
- GVK Power & Infra Limited - India
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Malabar Cements Ltd - India
- ICICI Bank Limited - India
- South Luzon Thermal Energy Corporation
- Economic Council, Georgia
- Oldendorff Carriers - Singapore
- Kepco SPC Power Corporation, Philippines
- Thiess Contractors Indonesia
- Meralco Power Generation, Philippines
- VISA Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- Toyota Tsusho Corporation, Japan
- Orica Australia Pty. Ltd.
- Offshore Bulk Terminal Pte Ltd, Singapore
- Banpu Public Company Limited - Thailand
- International Coal Ventures Pvt Ltd - India
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- SN Aboitiz Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Ministry of Finance - Indonesia
- Wilmar Investment Holdings
- Australian Coal Association
- Posco Energy - South Korea
- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Larsen & Toubro Limited - India
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- PTC India Limited - India
- Chamber of Mines of South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Minerals Council of Australia
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Port Waratah Coal Services - Australia
- Neyveli Lignite Corporation Ltd, - India
- Uttam Galva Steels Limited - India
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Power Finance Corporation Ltd., India
- Romanian Commodities Exchange
- The State Trading Corporation of India Ltd
- Binh Thuan Hamico - Vietnam
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Holcim Trading Pte Ltd - Singapore
- Star Paper Mills Limited - India
- Sindya Power Generating Company Private Ltd
- Goldman Sachs - Singapore
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Bangladesh Power Developement Board
- Kohat Cement Company Ltd. - Pakistan
- IHS Mccloskey Coal Group - USA
- PNOC Exploration Corporation - Philippines
- Jindal Steel & Power Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Jaiprakash Power Ventures ltd
- Petron Corporation, Philippines
- Gujarat Sidhee Cement - India
- Bayan Resources Tbk. - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Globalindo Alam Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Vizag Seaport Private Limited - India
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Georgia Ports Authority, United States
- Global Green Power PLC Corporation, Philippines
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- Singapore Mercantile Exchange
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Planning Commission, India
- Borneo Indobara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Kideco Jaya Agung - Indonesia
- Energy Development Corp, Philippines
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- Meenaskhi Energy Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Kaltim Prima Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Savvy Resources Ltd - HongKong
- Indonesian Coal Mining Association
- Parliament of New Zealand
- Ceylon Electricity Board - Sri Lanka
- Madhucon Powers Ltd - India
- Maheswari Brothers Coal Limited - India
- LBH Netherlands Bv - Netherlands
- Therma Luzon, Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Mjunction Services Limited - India
- Kumho Petrochemical, South Korea
- Coalindo Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GMR Energy Limited - India
- Thai Mozambique Logistica
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- SMC Global Power, Philippines
- AsiaOL BioFuels Corp., Philippines
- Videocon Industries ltd - India
- Baramulti Group, Indonesia
- Sree Jayajothi Cements Limited - India
- Attock Cement Pakistan Limited
- Sakthi Sugars Limited - India
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Iligan Light & Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- London Commodity Brokers - England
- Central Electricity Authority - India
- TeaM Sual Corporation - Philippines
- PowerSource Philippines DevCo
- Chettinad Cement Corporation Ltd - India
- Ind-Barath Power Infra Limited - India
- White Energy Company Limited
- Indian Energy Exchange, India
- Gujarat Mineral Development Corp Ltd - India
- Electricity Generating Authority of Thailand
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- MS Steel International - UAE
- Bhatia International Limited - India
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Karaikal Port Pvt Ltd - India
- Edison Trading Spa - Italy
- Rio Tinto Coal - Australia
- Marubeni Corporation - India
- Independent Power Producers Association of India
- Essar Steel Hazira Ltd - India
- McConnell Dowell - Australia
- The University of Queensland
- Kobexindo Tractors - Indoneisa
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- India Bulls Power Limited - India
- Samtan Co., Ltd - South Korea
- Standard Chartered Bank - UAE
- Bulk Trading Sa - Switzerland
- CNBM International Corporation - China
- Siam City Cement - Thailand
- Aditya Birla Group - India
- Salva Resources Pvt Ltd - India
- Latin American Coal - Colombia
- Formosa Plastics Group - Taiwan
- Interocean Group of Companies - India
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Straits Asia Resources Limited - Singapore
- Barasentosa Lestari - Indonesia
- Intertek Mineral Services - Indonesia
|
| |
| |
|
