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Wednesday, 12 October 16
UK SEABORNE COAL IMPORT PLUNGES 64% AS A WORRYING TREND LURKS - BIMCO
 The main exporters of thermal coal for coal- fired power plants to the United Kingdom (UK) have experienced a heavy decline in seaborne cargo volumes in 2016. This comes as a result of the UK starting a concerning trend for the dry bulk shipping industry, by close to doubling its Carbon Price Floor (CPF).
Russia, Colombia and the United States (US) have been the top coal exporters to the UK for the previous three years. The long hauls from the US and Colombia have historically been strong routes for the dry bulk industry, as they have provided a lot of tonnage miles. Since the UK increased their CPF to £18 per tonne of CO2, the exports from the three main exporters during the first 7 months have declined 69% compared to last year and the UK total import of coal for coal- fired power plants is down 64% for the same period.
Peter Sand Chief Shipping Analyst at BIMCO comments: “This is one of the most significant effects, which has impacted the demand side of the global dry bulk shipping industry in 2016. It reflects something bigger lurking beneath the surface of the coal industry and in transportation of this commodity.
The declining trend in coal consumption in the UK is affecting the dry bulk industry negatively and this story will not be the only one”.
UK carbon price floor increases coal price by 138%
When the CPF first came into effect in April 2013, it was based on the carbon price support (CPS) price per tonne of CO2 on top of the EU emission trading system (ETS) rate per tonne of CO2. At that time the CPS was £0.819 per Gigajoule (GJ). The introduction of this led to closures of several coal plants from 2012-2014 in the UK, with a total capacity of 8.4 Gigawatt (GW), enough to generate electricity for an estimated 6.7 million homes (Total: 25 million homes).
From the beginning of 2016 the CPS was increased to £1.568 per GJ equalling to around £18 per tonne of CO2, operating on top of the EU ETS at €5 per tonne of CO2. In September 2016 this was equivalent to a tax around £63.90 on a tonne coal worth £46.38 (CIF ARA). This increase led to a further closure of 8.2 GW in 2015 and 2016.
The CPF will double again in 2020 to £30 per tonne of CO2 and by 2030 it will be £70 per tonne of CO2.
Peter Sand adds:” Implementing a tax which increased the total price of coal by 138 %, caused an immediate reaction from the UK coal-fired power plants. The dry bulk industry is hugely affected by this, due to a large reduction in long haul thermal coal imports.”
The capacity taken out as a result of closures has put the UK into a position where their domestically produced supply of electricity will struggle to meet peaks in demand. In the case of domestically produced electricity falling short of demand, the UK will need to rely on importing electricity from other European countries.
Depending on the other European countries energy mix, their electricity exports will be a surplus of renewable fossil fuel – or nuclear energy. If the electricity generated comes from fossil fuel it may offset the declining UK coal imports somewhat and the change in demand for the dry bulk shipping industry will be less severe.
Price floor does the trading scheme’s job
While the effect of the UK carbon price floor to coal imports is undeniable, the European Union emission trading scheme (ETS) has not limited coal imports to the same extent. The development of the European ETS rate per tonne of CO2 from €30 in 2008 to the current €5, has not incentivised others to reduce coal consumption on a large scale. The decrease of the EU ETS rate is primarily due to an oversupply in allowances.
K coal consumption has been falling for four years, while the development in EU coal consumption has been more stable. The increase of the CPF level in 2016, caused a decline of 56.7% year-on-year for the first five months of 2016. A total of 6,839 thousand tonnes was consumed in the first five months, compared to 15,800 thousand tonnes in the year before.
Peter Sand comments: “It will be a setback for the dry bulk shipping industry if the CPF becomes a standardised scheme and is adopted by other nations as well as on a supranational level. It will, if introduced at the same level as in the UK, cause a similar development and closure of coal-fired power plants.
France, importing the fourth largest share of coal for European countries (8%) in 2016, has already imposed a CPF on 30€ per tonne of CO2 planned to be introduced in January 2017”.
Source: BIMCO
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Tuesday, 01 November 16
IMPROVEMENT ON THE DEMAND SIDE ONLY BUT THE SUPPLY SIDE IS WORSE OFF - BIMCO
Back in May, BIMCO disclosed a projected “road to recovery” for the dry bulk shipping industry. The main message back then on what the ...
Monday, 31 October 16
INDONESIAN 5000 GAR COAL ROSE 5.56% WEEK OVER WEEK - CS COAL INDEX
COALspot.com: The price for thermal coal has recovered substantially since April 2016. The China’s new policy on its domestic coal miners, th ...
Friday, 28 October 16
STEAM COAL IMPORTS: CHINA AND INDIA'S ROLE REVERSALS - BEN TRIMMEL
While a sharp decline in European imports is a key driver of the expected fall in steam coal trade this year, China and India remain leading actors ...
Friday, 28 October 16
U.S. WEEKLY COAL OUTPUT ROSE DURING THE WEEK ENDING OCTOBER 22 - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16.5 million short ton ...
Thursday, 27 October 16
73.08 PERCENT OF COAL PRODUCERS PREDICTED INDIA WILL NOT STOP COAL IMPORTS IN 2 TO 3 YEARS - POLL
COALspot released its weekly opinion poll "How likely do you think India will STOP thermal coal imports in 2-3 years?" this Monday.
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- Cigading International Bulk Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Attock Cement Pakistan Limited
- Kumho Petrochemical, South Korea
- Kideco Jaya Agung - Indonesia
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
- Gujarat Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Global Business Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- MS Steel International - UAE
- Trasteel International SA, Italy
- Wilmar Investment Holdings
- Marubeni Corporation - India
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Riau Bara Harum - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Mjunction Services Limited - India
- Minerals Council of Australia
- IEA Clean Coal Centre - UK
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- Orica Mining Services - Indonesia
- Sree Jayajothi Cements Limited - India
- Lanco Infratech Ltd - India
- Energy Link Ltd, New Zealand
- Ministry of Mines - Canada
- PTC India Limited - India
- SMG Consultants - Indonesia
- Economic Council, Georgia
- SN Aboitiz Power Inc, Philippines
- Energy Development Corp, Philippines
- CNBM International Corporation - China
- McConnell Dowell - Australia
- Heidelberg Cement - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Independent Power Producers Association of India
- Kalimantan Lumbung Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Larsen & Toubro Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Latin American Coal - Colombia
- Directorate Of Revenue Intelligence - India
- Global Green Power PLC Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Agrawal Coal Company - India
- Africa Commodities Group - South Africa
- South Luzon Thermal Energy Corporation
- Bahari Cakrawala Sebuku - Indonesia
- Electricity Authority, New Zealand
- Baramulti Group, Indonesia
- Rio Tinto Coal - Australia
- Binh Thuan Hamico - Vietnam
- Timah Investasi Mineral - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- San Jose City I Power Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Indo Tambangraya Megah - Indonesia
- Semirara Mining Corp, Philippines
- Siam City Cement - Thailand
- Coal and Oil Company - UAE
- Port Waratah Coal Services - Australia
- Toyota Tsusho Corporation, Japan
- Deloitte Consulting - India
- Anglo American - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- Vedanta Resources Plc - India
- India Bulls Power Limited - India
- PowerSource Philippines DevCo
- Ceylon Electricity Board - Sri Lanka
- OPG Power Generation Pvt Ltd - India
- Australian Coal Association
- Antam Resourcindo - Indonesia
- Coastal Gujarat Power Limited - India
- Formosa Plastics Group - Taiwan
- Edison Trading Spa - Italy
- Vijayanagar Sugar Pvt Ltd - India
- Posco Energy - South Korea
- Petron Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- GAC Shipping (India) Pvt Ltd
- European Bulk Services B.V. - Netherlands
- Dalmia Cement Bharat India
- International Coal Ventures Pvt Ltd - India
- London Commodity Brokers - England
- Ambuja Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- PNOC Exploration Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Cement Manufacturers Association - India
- The Treasury - Australian Government
- Meralco Power Generation, Philippines
- LBH Netherlands Bv - Netherlands
- Grasim Industreis Ltd - India
- Maheswari Brothers Coal Limited - India
- Carbofer General Trading SA - India
- Metalloyd Limited - United Kingdom
- Romanian Commodities Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Uttam Galva Steels Limited - India
- Thiess Contractors Indonesia
- Bukit Makmur.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Iligan Light & Power Inc, Philippines
- Parliament of New Zealand
- Standard Chartered Bank - UAE
- Neyveli Lignite Corporation Ltd, - India
- Georgia Ports Authority, United States
- Thai Mozambique Logistica
- Straits Asia Resources Limited - Singapore
- Karaikal Port Pvt Ltd - India
- Singapore Mercantile Exchange
- Jindal Steel & Power Ltd - India
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Commonwealth Bank - Australia
- Chettinad Cement Corporation Ltd - India
- Indian Energy Exchange, India
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- Aditya Birla Group - India
- Salva Resources Pvt Ltd - India
- Indian Oil Corporation Limited
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- Pendopo Energi Batubara - Indonesia
- Banpu Public Company Limited - Thailand
- Mercator Lines Limited - India
- Parry Sugars Refinery, India
- ICICI Bank Limited - India
- Vizag Seaport Private Limited - India
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Therma Luzon, Inc, Philippines
- Bangladesh Power Developement Board
- Ministry of Transport, Egypt
- Ind-Barath Power Infra Limited - India
- Jaiprakash Power Ventures ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meenaskhi Energy Private Limited - India
- Tata Chemicals Ltd - India
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bulk Trading Sa - Switzerland
- Aboitiz Power Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Gujarat Sidhee Cement - India
- IHS Mccloskey Coal Group - USA
- Bhatia International Limited - India
- Mercuria Energy - Indonesia
- Bhushan Steel Limited - India
- Central Java Power - Indonesia
- Manunggal Multi Energi - Indonesia
- Central Electricity Authority - India
- The University of Queensland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Sojitz Corporation - Japan
- Sarangani Energy Corporation, Philippines
- Borneo Indobara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sindya Power Generating Company Private Ltd
- GVK Power & Infra Limited - India
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Goldman Sachs - Singapore
- Ministry of Finance - Indonesia
- Bayan Resources Tbk. - Indonesia
- Interocean Group of Companies - India
- Medco Energi Mining Internasional
- Planning Commission, India
- Australian Commodity Traders Exchange
- Sakthi Sugars Limited - India
- Kartika Selabumi Mining - Indonesia
- Power Finance Corporation Ltd., India
- Chamber of Mines of South Africa
- Xindia Steels Limited - India
- Indonesian Coal Mining Association
- Siam City Cement PLC, Thailand
- VISA Power Limited - India
- Oldendorff Carriers - Singapore
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- Altura Mining Limited, Indonesia
- SMC Global Power, Philippines
- Simpson Spence & Young - Indonesia
- Malabar Cements Ltd - India
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- Billiton Holdings Pty Ltd - Australia
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