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Thursday, 07 April 16
CHINA STEEL CAPACITY CUTS FACE SOCIAL, FINANCIAL HURDLES - FITCH RATINGS
 Fitch Ratings says today that the Chinese government's supply-side reform of the steel sector faces immense social and financial challenges. The government earlier this year said it aimed to eliminate 100 million to 150 million tonnes of capacity by 2020. The complete elimination of these capacities will likely result in significant job losses in the labour-intensive sector and huge financial losses, given the highly levered nature of most companies in the industry.
We believe that unless specific actions are taken to address these challenges, rapid capacity elimination in the Chinese steel sector is unlikely. This would in turn mean prices are likely to remain low, resulting in higher liquidity and default risks for steelmakers, many of which expanded rapidly since 2012 funded by short-term debt.
Based on industry productivity norms of 300 tonnes of steel per year per employee in China, elimination of 150 million tonnes of capacity would mean the loss of around 500,000 jobs in the industry, and potentially more in ancillary industries. This number may not appear large relative to China's working population, but the steel industry tends to by highly geographically concentrated. Layoffs in regions where steelmakers are large employers could result in prolonged dampening of related industries such transportation, power generation, and even retail.
Furthermore, the sector is highly financially levered, with the average debt-to-asset ratio at more than 70%. We estimate the industry has total debt of CNY3trn-4trn, excluding upstream funding through payables and unpaid staff costs. Out of this debt, one third is in the form of bank loans. Even the shutdown of 100 million tonnes of capacity, a reduction of less than10% of existing capacity, could significantly hurt lenders.
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Monday, 04 April 16
CAPE INDEX JUMPED 70% WEEK ON WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
Friday, 01 April 16
ASSESSING THE DRY BULK MARKET AT ROCK BOTTOM - CLARKSONS
While the opening months of the year are typically a weak period for the dry bulk market, the downturn so far this year has been severe. Earnings h ...
Friday, 01 April 16
NINE AM - TIME TO GET AN INDONESIAN LANGUAGE VERSION OF YOUR CHARTERPARTIES - CLYDE & CO
KNOWLEDGE TO ELEVATE
For several years, Indonesian law (Article 31, Law Number 24 of 2009) has required that memoranda of understanding (" ...
Friday, 01 April 16
U.S. COAL PRODUCTION UP SLIGHTLY WEEK OVER WEEK - EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 11.6 million shor ...
Thursday, 31 March 16
CAPE: ANOTHER UNEVENTFUL WEEK WITH FIXTURES CONCLUDED AT LAST DONE LEVELS - FEARNLEYS
Cape
Another uneventful week with fixtures concluded at last done levels, CS levels remain around the USD 3 mark, whilst C3 is still just short o ...
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- Independent Power Producers Association of India
- Rio Tinto Coal - Australia
- GVK Power & Infra Limited - India
- Oldendorff Carriers - Singapore
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- European Bulk Services B.V. - Netherlands
- Australian Coal Association
- Thiess Contractors Indonesia
- Eastern Coal Council - USA
- ASAPP Information Group - India
- Australian Commodity Traders Exchange
- ICICI Bank Limited - India
- Port Waratah Coal Services - Australia
- PetroVietnam Power Coal Import and Supply Company
- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Thai Mozambique Logistica
- Miang Besar Coal Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Heidelberg Cement - Germany
- SN Aboitiz Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Toyota Tsusho Corporation, Japan
- Ministry of Mines - Canada
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Grasim Industreis Ltd - India
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Directorate Of Revenue Intelligence - India
- OPG Power Generation Pvt Ltd - India
- PowerSource Philippines DevCo
- Straits Asia Resources Limited - Singapore
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- Interocean Group of Companies - India
- Economic Council, Georgia
- Georgia Ports Authority, United States
- Tamil Nadu electricity Board
- Bukit Asam (Persero) Tbk - Indonesia
- Posco Energy - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kalimantan Lumbung Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Essar Steel Hazira Ltd - India
- GAC Shipping (India) Pvt Ltd
- Aditya Birla Group - India
- Sinarmas Energy and Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Binh Thuan Hamico - Vietnam
- Banpu Public Company Limited - Thailand
- IEA Clean Coal Centre - UK
- Sarangani Energy Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Maharashtra Electricity Regulatory Commission - India
- Coastal Gujarat Power Limited - India
- McConnell Dowell - Australia
- Savvy Resources Ltd - HongKong
- Alfred C Toepfer International GmbH - Germany
- Africa Commodities Group - South Africa
- CIMB Investment Bank - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- India Bulls Power Limited - India
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- Indian Energy Exchange, India
- Kobexindo Tractors - Indoneisa
- Barasentosa Lestari - Indonesia
- Videocon Industries ltd - India
- Attock Cement Pakistan Limited
- PTC India Limited - India
- Deloitte Consulting - India
- Sakthi Sugars Limited - India
- Vedanta Resources Plc - India
- Mjunction Services Limited - India
- Cement Manufacturers Association - India
- Kepco SPC Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- South Luzon Thermal Energy Corporation
- Petrochimia International Co. Ltd.- Taiwan
- Jaiprakash Power Ventures ltd
- Xindia Steels Limited - India
- Semirara Mining Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kartika Selabumi Mining - Indonesia
- Ministry of Transport, Egypt
- San Jose City I Power Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Global Coal Blending Company Limited - Australia
- Indo Tambangraya Megah - Indonesia
- SMG Consultants - Indonesia
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- The University of Queensland
- Global Business Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Siam City Cement - Thailand
- Dalmia Cement Bharat India
- Orica Mining Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Parliament of New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- Ambuja Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Chettinad Cement Corporation Ltd - India
- Trasteel International SA, Italy
- Altura Mining Limited, Indonesia
- Karaikal Port Pvt Ltd - India
- Carbofer General Trading SA - India
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Cigading International Bulk Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Marubeni Corporation - India
- VISA Power Limited - India
- Indika Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Parry Sugars Refinery, India
- Vijayanagar Sugar Pvt Ltd - India
- Malabar Cements Ltd - India
- Indonesian Coal Mining Association
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- Maheswari Brothers Coal Limited - India
- Agrawal Coal Company - India
- Commonwealth Bank - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- New Zealand Coal & Carbon
- Sindya Power Generating Company Private Ltd
- Edison Trading Spa - Italy
- Metalloyd Limited - United Kingdom
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Goldman Sachs - Singapore
- Larsen & Toubro Limited - India
- Star Paper Mills Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- MS Steel International - UAE
- Lanco Infratech Ltd - India
- Madhucon Powers Ltd - India
- Singapore Mercantile Exchange
- London Commodity Brokers - England
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- Manunggal Multi Energi - Indonesia
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- Renaissance Capital - South Africa
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- Coalindo Energy - Indonesia
- The Treasury - Australian Government
- Gujarat Sidhee Cement - India
- Siam City Cement PLC, Thailand
- Meenaskhi Energy Private Limited - India
- Bhatia International Limited - India
- Uttam Galva Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Indogreen Group - Indonesia
- Mercator Lines Limited - India
- Wilmar Investment Holdings
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Minerals Council of Australia
- Aboitiz Power Corporation - Philippines
- Standard Chartered Bank - UAE
- Latin American Coal - Colombia
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Globalindo Alam Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Riau Bara Harum - Indonesia
- TeaM Sual Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Medco Energi Mining Internasional
- AsiaOL BioFuels Corp., Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- Salva Resources Pvt Ltd - India
- White Energy Company Limited
- Kaltim Prima Coal - Indonesia
- Central Electricity Authority - India
- Bayan Resources Tbk. - Indonesia
- Antam Resourcindo - Indonesia
- Eastern Energy - Thailand
- Petron Corporation, Philippines
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- Power Finance Corporation Ltd., India
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