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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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Tuesday, 15 March 16
ADARO ENERGY LOWERED ITS COAL CASH COST BY 16% TO US$ 27.98 PER TONE IN 2015
Difficult Coal Market Condition Persists in 2015, Adaro Lowers Costs, Reduces Capital Spending and Maintains Solid Liquidity.
PT Adaro E ...
Monday, 14 March 16
THE CS 50 INDEX ROSE $0.16 OR, 0.41% TO $38.82 A TON
COALspot.com: Average 5000 GAR coal index of Indonesian origin rose 0.41 percent week over week to averaging $38.82 per ton on this past Friday, ac ...
Monday, 14 March 16
THE BALTIC EXCHANGE CONTINUED TO ROSE THIS PAST WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rise this week helped by higher rates for pa ...
Saturday, 12 March 16
PLN, COAL COMPANIES IN TALKS ABOUT PRICES - THE JAKARTA POST
Following a study that predicted that Indonesia would struggle to provide coal for its power stations in the near future, the government will facil ...
Friday, 11 March 16
ADANI GLOBAL BAGS 0.26 MILLION TONS OF COAL CONTRACT FROM LANKA COAL COMPANY
COALspot.com: Lanka Coal Company (Private) Limited, Sri Lanka has awarded 260,000 +/- 10% tons of Power plant 6300 GAR calorific value coal to Adan ...
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- Aditya Birla Group - India
- Planning Commission, India
- Romanian Commodities Exchange
- Vizag Seaport Private Limited - India
- Global Business Power Corporation, Philippines
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- India Bulls Power Limited - India
- Posco Energy - South Korea
- Thai Mozambique Logistica
- Oldendorff Carriers - Singapore
- Kartika Selabumi Mining - Indonesia
- Mintek Dendrill Indonesia
- PowerSource Philippines DevCo
- PetroVietnam Power Coal Import and Supply Company
- Coal and Oil Company - UAE
- Sree Jayajothi Cements Limited - India
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
- Singapore Mercantile Exchange
- Sindya Power Generating Company Private Ltd
- Altura Mining Limited, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bulk Trading Sa - Switzerland
- Trasteel International SA, Italy
- Jindal Steel & Power Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Samtan Co., Ltd - South Korea
- Merrill Lynch Commodities Europe
- Marubeni Corporation - India
- Videocon Industries ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- Agrawal Coal Company - India
- Minerals Council of Australia
- Semirara Mining and Power Corporation, Philippines
- Bhatia International Limited - India
- Standard Chartered Bank - UAE
- Sojitz Corporation - Japan
- Manunggal Multi Energi - Indonesia
- Ministry of Transport, Egypt
- Energy Link Ltd, New Zealand
- Georgia Ports Authority, United States
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- SMC Global Power, Philippines
- Sarangani Energy Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Gujarat Sidhee Cement - India
- Lanco Infratech Ltd - India
- Latin American Coal - Colombia
- Commonwealth Bank - Australia
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Simpson Spence & Young - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Mjunction Services Limited - India
- The University of Queensland
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Larsen & Toubro Limited - India
- Independent Power Producers Association of India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maheswari Brothers Coal Limited - India
- Borneo Indobara - Indonesia
- London Commodity Brokers - England
- Baramulti Group, Indonesia
- Electricity Authority, New Zealand
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Sakthi Sugars Limited - India
- White Energy Company Limited
- Renaissance Capital - South Africa
- MS Steel International - UAE
- GMR Energy Limited - India
- Barasentosa Lestari - Indonesia
- Therma Luzon, Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Petron Corporation, Philippines
- Central Electricity Authority - India
- Kobexindo Tractors - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement - Thailand
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- OPG Power Generation Pvt Ltd - India
- CNBM International Corporation - China
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- Rio Tinto Coal - Australia
- Dalmia Cement Bharat India
- Australian Coal Association
- Ceylon Electricity Board - Sri Lanka
- Port Waratah Coal Services - Australia
- Kumho Petrochemical, South Korea
- Timah Investasi Mineral - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Alfred C Toepfer International GmbH - Germany
- Attock Cement Pakistan Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Bhoruka Overseas - Indonesia
- IHS Mccloskey Coal Group - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Aboitiz Power Corporation - Philippines
- The State Trading Corporation of India Ltd
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Mineral Development Corp Ltd - India
- ASAPP Information Group - India
- Central Java Power - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- VISA Power Limited - India
- ICICI Bank Limited - India
- Malabar Cements Ltd - India
- Bangladesh Power Developement Board
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Banpu Public Company Limited - Thailand
- Karaikal Port Pvt Ltd - India
- Thiess Contractors Indonesia
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Wood Mackenzie - Singapore
- Rashtriya Ispat Nigam Limited - India
- Chettinad Cement Corporation Ltd - India
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- Electricity Generating Authority of Thailand
- Wilmar Investment Holdings
- Billiton Holdings Pty Ltd - Australia
- Interocean Group of Companies - India
- Africa Commodities Group - South Africa
- Cement Manufacturers Association - India
- LBH Netherlands Bv - Netherlands
- Indika Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Salva Resources Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Mercuria Energy - Indonesia
- Orica Australia Pty. Ltd.
- Indogreen Group - Indonesia
- European Bulk Services B.V. - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Australian Commodity Traders Exchange
- The Treasury - Australian Government
- South Luzon Thermal Energy Corporation
- Offshore Bulk Terminal Pte Ltd, Singapore
- Goldman Sachs - Singapore
- Antam Resourcindo - Indonesia
- Binh Thuan Hamico - Vietnam
- Grasim Industreis Ltd - India
- San Jose City I Power Corp, Philippines
- Intertek Mineral Services - Indonesia
- Bhushan Steel Limited - India
- Deloitte Consulting - India
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Vedanta Resources Plc - India
- GN Power Mariveles Coal Plant, Philippines
- Essar Steel Hazira Ltd - India
- Chamber of Mines of South Africa
- Price Waterhouse Coopers - Russia
- Indian Oil Corporation Limited
- Economic Council, Georgia
- PNOC Exploration Corporation - Philippines
- Anglo American - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Bharathi Cement Corporation - India
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Heidelberg Cement - Germany
- Indo Tambangraya Megah - Indonesia
- Meralco Power Generation, Philippines
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Parliament of New Zealand
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Sical Logistics Limited - India
- Coastal Gujarat Power Limited - India
- Uttam Galva Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Bukit Baiduri Energy - Indonesia
- Xindia Steels Limited - India
- Ambuja Cements Ltd - India
- Ministry of Finance - Indonesia
- Meenaskhi Energy Private Limited - India
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- Holcim Trading Pte Ltd - Singapore
- Krishnapatnam Port Company Ltd. - India
- Kalimantan Lumbung Energi - Indonesia
- IEA Clean Coal Centre - UK
- Carbofer General Trading SA - India
- Madhucon Powers Ltd - India
- SN Aboitiz Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Orica Mining Services - Indonesia
- Indian Energy Exchange, India
- Siam City Cement PLC, Thailand
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