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Monday, 17 August 15
INDONESIAN THERMAL COAL REFERENCE PRICE HITS RECORD LOW AGAIN!
 COALspot.com - The Director General of Mineral and Coal of Indonesia revised down Indonesian coal benchmark price once again to US$ 59.14 per MT for 6322 GAR coal for August 2015 delivery. The August price reference for Indonesian coal declined just 0.03% or US cents 2 per MT month over month and lost 7.36% year to date.
According to the date from Director General shows that, the government has fixed US$ 14.61 per MT (decline 0.07% month on month) for the coal with calorific value 2,995 kcal/kg on GAR with total moisture 50.10% on as received basis for August 2015 delivery. The royalty and taxes will be calculated based on this declared HPB. In the meantime, the government also fixed US$ 42.93 per MT as HPB for 5000 GAR coal with total moisture 22.40%, Ash 8.90% and Sulphur 0.54% for August 2015 deliveries.
Indonesian thermal coal reference price or called HBA recorded the lowest level in 80 months in August or since launching of HBA by the government of Indonesia in January 2009.
Indonesian coal benchmark price for August 2015 was calculated based on calorific value of 6,322 kcal/kg (GAR), stated to be using a formula based on the July 2015 index average of ICI-1 (Indonesia Coal Index) 25%, Platts-5900 25%, NEX (Newcastle Export Index) 25%, and GC (globalCoal Index) 25% and its was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8% (arb), Ash Content 15 % (arb) and delivery free on Board (FOB) Vessel basis and apply to spot contract, delivery between 1 – 31 August 2015.
The highest benchmark price was declared by the Ministry of Energy & Mineral Resources of Indonesia in February 2011 and compared today's price the February 2011 price was higher by US$ 67.91 per MT.
The government of Indonesia was publishing a monthly coal price reference (HBA & HPB) since January 2009 to be used by coal producers for all spot and term contracts. However, the official implementation of HBA was commenced since September 2011. According to government regulation, the coal benchmark price must be used by the holders of production operation IUPs, special production operation IUP's, and CCoWs as a reference in determining the coal selling price for a particular period.
The declared HBA in August 2015 was 15.86 per cent or $ 11.15 lower compared to the same period in 2014.
HBA of February 2011 was the highest since the launching of HBA by the government of Indonesia (US$ 127.05 / MT for 6322 GAR coal) and the lowest was declared in this month (US$ 59.14/ MT).
This month declared price is only valid for the spot price (loading on or before 31 August 2015), while as for term price (up to 12 months supply), the average reference price (HPB) of the previous three months will be used to determine the selling price. (50% of the latest available month HPB (this month) 30% one month prior HPB and 20% of two-month prior HPB).
The government also declared price marker for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands act as the benchmark and used to calculate other 66 coal types with a quality similar to the coal price markers.
For sales in the barge, the reference price is reduced by barging and trans-shipment costs from the barge to the vessel. The government has recently issued a regulation (644.K/30/DJB/2013 dated 21 March 2013) to regulate or determine coal prices on FOB barge. The government also fixed the freight for barging, surveyor, insurance and etc., to determine FOB barge price. Transshipment cost US$ 4.00/MT + Surveyor cost US$ 0.25/MT + Insurance 0.80% per shipment + Barging cost (for 270 footer - (US$ 0.0221 X barging distance) + US$ 3.7406, for 270 - 330 footer - (US$ 0.0184 X barging distance) + US$ 3.1172 and > 330 footer - (US$ 0.0154 X barging distance) + US$ 2.6002.
The coal price reference is being established to fulfill the requirement of mining law 04/2009 and ministerial decree No.17/2010. In addition to that, it aims to increase government revenue from royalties from coal producers.
The excess of coal supplies and weak demand, fast developments of renewable energy and fall in oil prices are still to be blamed for delay of price recovery or falling of prices. Today’s price levels are not supporting any new investments or new explorations in coal mines.
According to reports, the free cash flow of various Indonesian coal miners have turned negative, the generated cash from coal production cannot cover companies’ operational costs. Big Indonesian coal players are now eager to diversify into other businesses such as power generation and logistics.
Low coal prices have big implications for exporting countries like Indonesia, Australia, South Africa and Russia. We believe it will take several years to recover fully as the supply is still quite higher compare to the demand and also the price of oil has also falling drastically. The price of oil fallen from more than $100 per barrel in June 2014 to under $49 today.
However according to Medium-Term Coal Market Report 2014, the global coal demand growth has been slowing in recent years, and the report sees that trend continuing. Coal demand will grow at an average rate of 2.1% per year through 2019.
According to the report, the global demand for coal over the next five years will continue marching higher, breaking the 9-billion-tonne level by 2019. The report notes that despite China’s efforts to moderate its coal consumption, it will still account for three-fifths of demand growth during the outlook period. Moreover, China will be joined by India, ASEAN countries and other countries in Asia as the main engines of growth in coal consumption, offsetting declines in Europe and the United States.
The government of Indonesia is also implemented a new income tax of 1.5% on the delivery value to domestic or export value of the coal starting from 8 August 2015. The new tax would be levied on IUP holders or Izin Usaha Pertambangan and not on Coal Contract of Works or CCoW holders. Holders of Coal Contract of Works are exempted from this new tax. However CCoW holders are dominating Indonesian coal industry or approximately 75% of coal output is coming from those big scale miners in Indonesia.
It would be nice to see coal prices settle at a point where both the producer and consumer can sustain. Will it happen any time soon……..?
Click here for full details of Indonesian coal price reference since January 2009.(cs).
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Monday, 07 September 15
CFR SOUTH CHINA COAL SWAPS ROSE 1.1 PER CENT WEEK OVER WEEK
COALspot.com: API 8 CFR South China Coal swap for 4Q’ 2015 delivery declined just US$ 1.52 (3 %) per MT month over month.
A commodity sw ...
Sunday, 06 September 15
AUTOMATION AND TECHNOLOGY IS CERTAINLY PART OF THE SOLUTION FOR IMPROVING PERFORMANCE AND EFFICIENCY TO MAKE THE MINE OPERATIONS MORE PROFITABLE, HOWEVER............ - LUKE JALSEVAC
"The Technology and Innovation in Mining 2015" production team at Information Exchange Group interviewed Luke Jalsevac, Director, Busines ...
Sunday, 06 September 15
THE CAPE SIZE INDEX ROSE 10.83 PER CENT WEEK OVER WEEK
COALspot.com: The BDI, the Baltic exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, declined o ...
Saturday, 05 September 15
DRY BULK MARKET MAY SUFFER NOW, BUT IS BOUND FOR A RECOVERY THANKS TO A LIMITED FUTURE FLEET GROWTH - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The slow increase of dry bulk tonnage growth this year could turn into a solid indicator of the market’s future prospects. According to a rec ...
Friday, 04 September 15
U.S. COAL PRODUCTION FOR THE W/E AUGUST 29, UP SLIGHTLY; FALL 4.5 PERCENT Y-Y: EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 18.7 million shor ...
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- Georgia Ports Authority, United States
- Chamber of Mines of South Africa
- Rio Tinto Coal - Australia
- Cigading International Bulk Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- SMC Global Power, Philippines
- Posco Energy - South Korea
- Riau Bara Harum - Indonesia
- Larsen & Toubro Limited - India
- PTC India Limited - India
- The Treasury - Australian Government
- Dalmia Cement Bharat India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Attock Cement Pakistan Limited
- Renaissance Capital - South Africa
- Xindia Steels Limited - India
- Marubeni Corporation - India
- Trasteel International SA, Italy
- Sakthi Sugars Limited - India
- Minerals Council of Australia
- Orica Australia Pty. Ltd.
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- Kobexindo Tractors - Indoneisa
- Power Finance Corporation Ltd., India
- Karaikal Port Pvt Ltd - India
- PowerSource Philippines DevCo
- The University of Queensland
- Thai Mozambique Logistica
- Chettinad Cement Corporation Ltd - India
- Kideco Jaya Agung - Indonesia
- ICICI Bank Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- Cement Manufacturers Association - India
- Rashtriya Ispat Nigam Limited - India
- International Coal Ventures Pvt Ltd - India
- Parliament of New Zealand
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- LBH Netherlands Bv - Netherlands
- Jaiprakash Power Ventures ltd
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Pendopo Energi Batubara - Indonesia
- Antam Resourcindo - Indonesia
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Indian Oil Corporation Limited
- Bulk Trading Sa - Switzerland
- Semirara Mining and Power Corporation, Philippines
- Eastern Energy - Thailand
- Gujarat Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- McConnell Dowell - Australia
- Karbindo Abesyapradhi - Indoneisa
- GMR Energy Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Alfred C Toepfer International GmbH - Germany
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GVK Power & Infra Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Australian Coal Association
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Bhushan Steel Limited - India
- Planning Commission, India
- Lanco Infratech Ltd - India
- GAC Shipping (India) Pvt Ltd
- India Bulls Power Limited - India
- SMG Consultants - Indonesia
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Sical Logistics Limited - India
- Global Green Power PLC Corporation, Philippines
- Singapore Mercantile Exchange
- Banpu Public Company Limited - Thailand
- Jindal Steel & Power Ltd - India
- Kumho Petrochemical, South Korea
- Medco Energi Mining Internasional
- Eastern Coal Council - USA
- Electricity Generating Authority of Thailand
- Energy Link Ltd, New Zealand
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Barasentosa Lestari - Indonesia
- Central Java Power - Indonesia
- Sarangani Energy Corporation, Philippines
- Malabar Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- VISA Power Limited - India
- Gujarat Sidhee Cement - India
- Gujarat Mineral Development Corp Ltd - India
- Indonesian Coal Mining Association
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- Energy Development Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Thiess Contractors Indonesia
- New Zealand Coal & Carbon
- Salva Resources Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Mjunction Services Limited - India
- Independent Power Producers Association of India
- Petron Corporation, Philippines
- Star Paper Mills Limited - India
- Port Waratah Coal Services - Australia
- Central Electricity Authority - India
- Parry Sugars Refinery, India
- Global Business Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Deloitte Consulting - India
- Bharathi Cement Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Formosa Plastics Group - Taiwan
- White Energy Company Limited
- Global Coal Blending Company Limited - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Aboitiz Power Corporation - Philippines
- PNOC Exploration Corporation - Philippines
- Carbofer General Trading SA - India
- Coalindo Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- London Commodity Brokers - England
- CIMB Investment Bank - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Kepco SPC Power Corporation, Philippines
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Aditya Birla Group - India
- Ambuja Cements Ltd - India
- Vedanta Resources Plc - India
- Therma Luzon, Inc, Philippines
- ASAPP Information Group - India
- Billiton Holdings Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Mercuria Energy - Indonesia
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- Electricity Authority, New Zealand
- Commonwealth Bank - Australia
- Anglo American - United Kingdom
- Bangladesh Power Developement Board
- Interocean Group of Companies - India
- Kalimantan Lumbung Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Heidelberg Cement - Germany
- Siam City Cement - Thailand
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Standard Chartered Bank - UAE
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement PLC, Thailand
- MS Steel International - UAE
- Savvy Resources Ltd - HongKong
- Iligan Light & Power Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Sindya Power Generating Company Private Ltd
- Manunggal Multi Energi - Indonesia
- Latin American Coal - Colombia
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- Tata Chemicals Ltd - India
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Romanian Commodities Exchange
- Directorate Of Revenue Intelligence - India
- Ministry of Finance - Indonesia
- Bhoruka Overseas - Indonesia
- IEA Clean Coal Centre - UK
- Coastal Gujarat Power Limited - India
- SN Aboitiz Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Ceylon Electricity Board - Sri Lanka
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- Sree Jayajothi Cements Limited - India
- Bukit Makmur.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- Economic Council, Georgia
- Neyveli Lignite Corporation Ltd, - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Grasim Industreis Ltd - India
- Ministry of Mines - Canada
- Wilmar Investment Holdings
- Borneo Indobara - Indonesia
- European Bulk Services B.V. - Netherlands
- Binh Thuan Hamico - Vietnam
- Kartika Selabumi Mining - Indonesia
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