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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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Thursday, 27 October 16
PANAMAX: FIRM ATLANTIC; TOPPISH PACIFIC - FEARNLEYS
Supramax
The trend from last week is passed on. ECSA still strong with Supras from N Brazil to Med fixed at $9,000 to $9,500 daily.
Accordin ...
Wednesday, 26 October 16
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
If the finale of a thriller movie finds the leading actor successfully surviving after all the sacrifices he has made, the audience presumes this t ...
Tuesday, 25 October 16
INDONESIAN COAL PRICES MARCH HIGHER CONTINUES
COALspot.com: A rally in thermal coal prices over the past few months, after years of decline, is still continuing and it is expected to rally at l ...
Tuesday, 25 October 16
THINGS ARE SLOWLY STARTING TO IMPROVE AS CORRECTIONS ARE MADE - ALLIED
It seems as though left, right and centre, all we see nowadays is the word “restructuring”.
There is restructuring amongst bankers ...
Monday, 24 October 16
KOMIPO INVITES BIDS FOR 0.78 MILLION TONS OF BITUMINOUS COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a new tender for 780,000 Metric Tons of Bituminous Coal for its B ...
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- Tamil Nadu electricity Board
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Krishnapatnam Port Company Ltd. - India
- Price Waterhouse Coopers - Russia
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- TeaM Sual Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- CIMB Investment Bank - Malaysia
- The State Trading Corporation of India Ltd
- Edison Trading Spa - Italy
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- Metalloyd Limited - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Attock Cement Pakistan Limited
- Global Business Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Electricity Authority, New Zealand
- Formosa Plastics Group - Taiwan
- Wilmar Investment Holdings
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- India Bulls Power Limited - India
- Ministry of Transport, Egypt
- Baramulti Group, Indonesia
- Singapore Mercantile Exchange
- Rio Tinto Coal - Australia
- Karaikal Port Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- Thiess Contractors Indonesia
- Merrill Lynch Commodities Europe
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- Global Coal Blending Company Limited - Australia
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Xindia Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- The University of Queensland
- Bukit Asam (Persero) Tbk - Indonesia
- Central Java Power - Indonesia
- Kumho Petrochemical, South Korea
- CNBM International Corporation - China
- Sinarmas Energy and Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Jindal Steel & Power Ltd - India
- Parry Sugars Refinery, India
- Meenaskhi Energy Private Limited - India
- Carbofer General Trading SA - India
- Ind-Barath Power Infra Limited - India
- New Zealand Coal & Carbon
- Intertek Mineral Services - Indonesia
- Eastern Energy - Thailand
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- Salva Resources Pvt Ltd - India
- Aditya Birla Group - India
- AsiaOL BioFuels Corp., Philippines
- Mjunction Services Limited - India
- Bulk Trading Sa - Switzerland
- Therma Luzon, Inc, Philippines
- Orica Mining Services - Indonesia
- Banpu Public Company Limited - Thailand
- Indo Tambangraya Megah - Indonesia
- Simpson Spence & Young - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Alfred C Toepfer International GmbH - Germany
- Orica Australia Pty. Ltd.
- Cigading International Bulk Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- PetroVietnam Power Coal Import and Supply Company
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
- Cement Manufacturers Association - India
- Gujarat Electricity Regulatory Commission - India
- Larsen & Toubro Limited - India
- Pendopo Energi Batubara - Indonesia
- Dalmia Cement Bharat India
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- Australian Commodity Traders Exchange
- Goldman Sachs - Singapore
- Deloitte Consulting - India
- Mercator Lines Limited - India
- Australian Coal Association
- Kaltim Prima Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Heidelberg Cement - Germany
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Coal Council - USA
- Sakthi Sugars Limited - India
- Uttam Galva Steels Limited - India
- Indika Energy - Indonesia
- Gujarat Sidhee Cement - India
- Siam City Cement PLC, Thailand
- London Commodity Brokers - England
- GMR Energy Limited - India
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- Riau Bara Harum - Indonesia
- Energy Link Ltd, New Zealand
- Savvy Resources Ltd - HongKong
- Kepco SPC Power Corporation, Philippines
- Interocean Group of Companies - India
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Anglo American - United Kingdom
- International Coal Ventures Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wood Mackenzie - Singapore
- LBH Netherlands Bv - Netherlands
- SMC Global Power, Philippines
- Timah Investasi Mineral - Indoneisa
- Grasim Industreis Ltd - India
- Aboitiz Power Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Port Waratah Coal Services - Australia
- IEA Clean Coal Centre - UK
- Leighton Contractors Pty Ltd - Australia
- Tata Chemicals Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- VISA Power Limited - India
- Antam Resourcindo - Indonesia
- Semirara Mining Corp, Philippines
- Vedanta Resources Plc - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Mercuria Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- White Energy Company Limited
- Standard Chartered Bank - UAE
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- Bangladesh Power Developement Board
- Neyveli Lignite Corporation Ltd, - India
- Kartika Selabumi Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- Borneo Indobara - Indonesia
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Africa Commodities Group - South Africa
- Central Electricity Authority - India
- Billiton Holdings Pty Ltd - Australia
- Bhushan Steel Limited - India
- Kobexindo Tractors - Indoneisa
- Agrawal Coal Company - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bharathi Cement Corporation - India
- Economic Council, Georgia
- Rashtriya Ispat Nigam Limited - India
- Globalindo Alam Lestari - Indonesia
- Bukit Baiduri Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- Makarim & Taira - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Minerals Council of Australia
- Indian Oil Corporation Limited
- Toyota Tsusho Corporation, Japan
- Indogreen Group - Indonesia
- Essar Steel Hazira Ltd - India
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- Indonesian Coal Mining Association
- Bhatia International Limited - India
- Kideco Jaya Agung - Indonesia
- Georgia Ports Authority, United States
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Renaissance Capital - South Africa
- Chamber of Mines of South Africa
- MS Steel International - UAE
- Bhoruka Overseas - Indonesia
- Sojitz Corporation - Japan
- Sical Logistics Limited - India
- Altura Mining Limited, Indonesia
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- European Bulk Services B.V. - Netherlands
- Coal and Oil Company - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- SN Aboitiz Power Inc, Philippines
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- Madhucon Powers Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Barasentosa Lestari - Indonesia
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Iligan Light & Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Star Paper Mills Limited - India
- Sarangani Energy Corporation, Philippines
- Siam City Cement - Thailand
- Asmin Koalindo Tuhup - Indonesia
- South Luzon Thermal Energy Corporation
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