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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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Wednesday, 30 March 16
MINISTRY OF ENERGY AND MINERAL RESOURCES OF INDONESIA TO REVISE METHODOLOGY TO DETERMINE THE SELLING PRICE OF COAL TO MINE-MOUTH POWER PLANTS
COALspot.com: Ministry of Energy and Mineral Resources (ESDM) of Indonesia to review to revise methodology to determine the selling price of co ...
Wednesday, 30 March 16
VALEMAXES: THE BIGGEST NIGHTMARE OF TODAY'S DRY BULK MARKET - INTERMODAL
At a time that Europe is still dealing with the aftermath of the terrorist attacks in Brussels our society is daily bombarded with news of terroris ...
Tuesday, 29 March 16
BULK CARRIER VENTILATION - CAPTAIN PAUL R. WALTON
KNOWLEDGE TO ELEVATE
Moisture damage is a source of many cargo claims. Claimants allege that it is brought about by the ship’s failure t ...
Monday, 28 March 16
INDONESIAN WEEKLY CS50 COAL INDEX CLOSED SLIGHTLY FIRM; CS 57 INDEX CLOSED WEAK
COALspot.com: Average 5000 GAR coal index of Indonesian origin rose 0.03 percent week over week to averaging $38.91 per ton on this past Thursday, ...
Monday, 28 March 16
THE SUPRAMAX INDEX WAS UP TWENTY-FOUR POINTS TO 473 POINTS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
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- Deloitte Consulting - India
- Electricity Generating Authority of Thailand
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- Price Waterhouse Coopers - Russia
- CIMB Investment Bank - Malaysia
- Semirara Mining Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Rio Tinto Coal - Australia
- Standard Chartered Bank - UAE
- Kalimantan Lumbung Energi - Indonesia
- Tata Chemicals Ltd - India
- PowerSource Philippines DevCo
- Kartika Selabumi Mining - Indonesia
- Xindia Steels Limited - India
- Sarangani Energy Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Central Java Power - Indonesia
- ICICI Bank Limited - India
- Tamil Nadu electricity Board
- Directorate General of MIneral and Coal - Indonesia
- Vizag Seaport Private Limited - India
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Makarim & Taira - Indonesia
- Vedanta Resources Plc - India
- Eastern Coal Council - USA
- Iligan Light & Power Inc, Philippines
- Banpu Public Company Limited - Thailand
- Bhushan Steel Limited - India
- Australian Commodity Traders Exchange
- Latin American Coal - Colombia
- Posco Energy - South Korea
- Timah Investasi Mineral - Indoneisa
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- Bangladesh Power Developement Board
- Australian Coal Association
- Indian Oil Corporation Limited
- India Bulls Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Sree Jayajothi Cements Limited - India
- McConnell Dowell - Australia
- Pendopo Energi Batubara - Indonesia
- Aditya Birla Group - India
- Economic Council, Georgia
- Bharathi Cement Corporation - India
- London Commodity Brokers - England
- Independent Power Producers Association of India
- AsiaOL BioFuels Corp., Philippines
- TeaM Sual Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Sakthi Sugars Limited - India
- Georgia Ports Authority, United States
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Bayan Resources Tbk. - Indonesia
- Simpson Spence & Young - Indonesia
- Uttam Galva Steels Limited - India
- Bulk Trading Sa - Switzerland
- Energy Link Ltd, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- LBH Netherlands Bv - Netherlands
- Petrochimia International Co. Ltd.- Taiwan
- ASAPP Information Group - India
- Ministry of Mines - Canada
- Indogreen Group - Indonesia
- Port Waratah Coal Services - Australia
- Kumho Petrochemical, South Korea
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Savvy Resources Ltd - HongKong
- Mercator Lines Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Cigading International Bulk Terminal - Indonesia
- Ministry of Finance - Indonesia
- Goldman Sachs - Singapore
- Coalindo Energy - Indonesia
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Marubeni Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- SN Aboitiz Power Inc, Philippines
- Electricity Authority, New Zealand
- Leighton Contractors Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Gujarat Sidhee Cement - India
- Parliament of New Zealand
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- SMG Consultants - Indonesia
- IEA Clean Coal Centre - UK
- Neyveli Lignite Corporation Ltd, - India
- Sojitz Corporation - Japan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Metalloyd Limited - United Kingdom
- Chamber of Mines of South Africa
- Petron Corporation, Philippines
- CNBM International Corporation - China
- IHS Mccloskey Coal Group - USA
- Minerals Council of Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Grasim Industreis Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Thai Mozambique Logistica
- Indika Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Siam City Cement - Thailand
- Mercuria Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Antam Resourcindo - Indonesia
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Global Business Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Samtan Co., Ltd - South Korea
- International Coal Ventures Pvt Ltd - India
- Videocon Industries ltd - India
- Dalmia Cement Bharat India
- GN Power Mariveles Coal Plant, Philippines
- Eastern Energy - Thailand
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- PNOC Exploration Corporation - Philippines
- Malabar Cements Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Planning Commission, India
- SMC Global Power, Philippines
- Salva Resources Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- MS Steel International - UAE
- Indonesian Coal Mining Association
- Agrawal Coal Company - India
- Kobexindo Tractors - Indoneisa
- Borneo Indobara - Indonesia
- Formosa Plastics Group - Taiwan
- Thiess Contractors Indonesia
- New Zealand Coal & Carbon
- South Luzon Thermal Energy Corporation
- Holcim Trading Pte Ltd - Singapore
- Intertek Mineral Services - Indonesia
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Aboitiz Power Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Wilmar Investment Holdings
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Globalindo Alam Lestari - Indonesia
- Madhucon Powers Ltd - India
- White Energy Company Limited
- Sinarmas Energy and Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Kaltim Prima Coal - Indonesia
- Anglo American - United Kingdom
- Indian Energy Exchange, India
- Star Paper Mills Limited - India
- Manunggal Multi Energi - Indonesia
- VISA Power Limited - India
- Larsen & Toubro Limited - India
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Krishnapatnam Port Company Ltd. - India
- Romanian Commodities Exchange
- Maharashtra Electricity Regulatory Commission - India
- Parry Sugars Refinery, India
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Bhatia International Limited - India
- Medco Energi Mining Internasional
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- Ministry of Transport, Egypt
- Bukit Baiduri Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Interocean Group of Companies - India
- Coal and Oil Company - UAE
- Central Electricity Authority - India
- GMR Energy Limited - India
- Directorate Of Revenue Intelligence - India
- Africa Commodities Group - South Africa
- Global Coal Blending Company Limited - Australia
- Mjunction Services Limited - India
- Sindya Power Generating Company Private Ltd
- Heidelberg Cement - Germany
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- PTC India Limited - India
- Barasentosa Lestari - Indonesia
- The University of Queensland
- Ind-Barath Power Infra Limited - India
- Riau Bara Harum - Indonesia
- Attock Cement Pakistan Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
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