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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, 29 February 16
BALTIC INDEX INCHES UP THIS PAST WEEK AS SMALLER VESSELS LEND SUPPORT
COALspot.com: The freight markets rose slightly this past week.
The Baltic Dry Index (BDI) of dry-bulk shipping freights, a measure of global ...
Monday, 29 February 16
LOSS OF EARNINGS IN THE WAKE OF A COLLISION - GARD
KNOWLEDGE TO ELEVATE
A shipowner’s loss of earnings can form a significant part of a collision claim. Awareness of the ways of calculati ...
Friday, 26 February 16
U.S WEEKLY COAL PRODUCTION UP SLIGHTLY
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 13.4 million shor ...
Thursday, 25 February 16
DRY BULKERS ARE SCRAPPED AT RECORD PACE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The newbuilding market is at a lull these days, as ship owners are focusing on two fronts, getting rid of excess dry bulk tonnage and snapping up b ...
Wednesday, 24 February 16
HOW IS THE FUEL MIX FOR U.S. ELECTRICITY GENERATION CHANGING? - EIA
In recent years, there have been changes in the mix of fuels used to generate electricity in the United States. Natural gas and renewable energy so ...
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- Aditya Birla Group - India
- Uttam Galva Steels Limited - India
- Renaissance Capital - South Africa
- Romanian Commodities Exchange
- LBH Netherlands Bv - Netherlands
- Savvy Resources Ltd - HongKong
- Commonwealth Bank - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Jaiprakash Power Ventures ltd
- Larsen & Toubro Limited - India
- Straits Asia Resources Limited - Singapore
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- AsiaOL BioFuels Corp., Philippines
- Manunggal Multi Energi - Indonesia
- Bulk Trading Sa - Switzerland
- Oldendorff Carriers - Singapore
- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- Economic Council, Georgia
- Metalloyd Limited - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Sical Logistics Limited - India
- Independent Power Producers Association of India
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- Billiton Holdings Pty Ltd - Australia
- Bhushan Steel Limited - India
- Salva Resources Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Global Green Power PLC Corporation, Philippines
- PTC India Limited - India
- ASAPP Information Group - India
- Gujarat Electricity Regulatory Commission - India
- Thiess Contractors Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Eastern Coal Council - USA
- Miang Besar Coal Terminal - Indonesia
- Carbofer General Trading SA - India
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
- Essar Steel Hazira Ltd - India
- Wilmar Investment Holdings
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Indonesian Coal Mining Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- Formosa Plastics Group - Taiwan
- Vizag Seaport Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Wood Mackenzie - Singapore
- The University of Queensland
- Ceylon Electricity Board - Sri Lanka
- Interocean Group of Companies - India
- Merrill Lynch Commodities Europe
- PetroVietnam Power Coal Import and Supply Company
- Port Waratah Coal Services - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Finance - Indonesia
- IHS Mccloskey Coal Group - USA
- Iligan Light & Power Inc, Philippines
- Indika Energy - Indonesia
- MS Steel International - UAE
- Bhoruka Overseas - Indonesia
- Sojitz Corporation - Japan
- White Energy Company Limited
- Planning Commission, India
- Electricity Authority, New Zealand
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Standard Chartered Bank - UAE
- South Luzon Thermal Energy Corporation
- McConnell Dowell - Australia
- Altura Mining Limited, Indonesia
- Grasim Industreis Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Attock Cement Pakistan Limited
- San Jose City I Power Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Electricity Generating Authority of Thailand
- Lanco Infratech Ltd - India
- Coalindo Energy - Indonesia
- Deloitte Consulting - India
- Xindia Steels Limited - India
- Malabar Cements Ltd - India
- Latin American Coal - Colombia
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- Siam City Cement - Thailand
- GVK Power & Infra Limited - India
- Kideco Jaya Agung - Indonesia
- India Bulls Power Limited - India
- Minerals Council of Australia
- CIMB Investment Bank - Malaysia
- Central Electricity Authority - India
- Chettinad Cement Corporation Ltd - India
- Therma Luzon, Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Maharashtra Electricity Regulatory Commission - India
- Mercator Lines Limited - India
- Antam Resourcindo - Indonesia
- Kaltim Prima Coal - Indonesia
- Anglo American - United Kingdom
- Coastal Gujarat Power Limited - India
- Posco Energy - South Korea
- Sakthi Sugars Limited - India
- Medco Energi Mining Internasional
- Mjunction Services Limited - India
- Mintek Dendrill Indonesia
- The Treasury - Australian Government
- Ministry of Mines - Canada
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- The State Trading Corporation of India Ltd
- GN Power Mariveles Coal Plant, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- Agrawal Coal Company - India
- Kalimantan Lumbung Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Energy - Thailand
- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- Maheswari Brothers Coal Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bangladesh Power Developement Board
- Binh Thuan Hamico - Vietnam
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- Edison Trading Spa - Italy
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Intertek Mineral Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Power Finance Corporation Ltd., India
- Dalmia Cement Bharat India
- Africa Commodities Group - South Africa
- Trasteel International SA, Italy
- Borneo Indobara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Chamber of Mines of South Africa
- GMR Energy Limited - India
- Parliament of New Zealand
- Coal and Oil Company - UAE
- SMC Global Power, Philippines
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- PowerSource Philippines DevCo
- Bukit Asam (Persero) Tbk - Indonesia
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- Gujarat Sidhee Cement - India
- Sinarmas Energy and Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Riau Bara Harum - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thai Mozambique Logistica
- Ministry of Transport, Egypt
- Bhatia International Limited - India
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Makarim & Taira - Indonesia
- Jindal Steel & Power Ltd - India
- London Commodity Brokers - England
- New Zealand Coal & Carbon
- Kartika Selabumi Mining - Indonesia
- Semirara Mining Corp, Philippines
- Energy Link Ltd, New Zealand
- Videocon Industries ltd - India
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Pendopo Energi Batubara - Indonesia
- GAC Shipping (India) Pvt Ltd
- OPG Power Generation Pvt Ltd - India
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- Timah Investasi Mineral - Indoneisa
- TeaM Sual Corporation - Philippines
- Ambuja Cements Ltd - India
- Baramulti Group, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- VISA Power Limited - India
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