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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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Monday, 03 October 16
THERMAL COAL PRICE SHOOTS UP AND MADE THEIR VERTICAL MOVE IN 5 YEARS; PRICE RALLY 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 ...
Monday, 03 October 16
DRY-BULK SHIPPING FREIGHTS SLIDE IN SOFTENING SPOT MARKET
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities decline slightly and ending in a negative note this past ...
Friday, 30 September 16
U.S. WEEKLY COAL OUTPUT FELL 2.3% - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 15.7 million short ton ...
Friday, 30 September 16
OPEC CUT SUPPORTS SLOW OIL RECOVERY, NOT STRONG REBOUND - FITCH
OPEC's oil production target announced this week signals the potential for greater co-ordination among its members, but the target itself is la ...
Thursday, 29 September 16
FREIGHT RATES MIGHT CONTINUE TO SLIDE NEXT WEEK DUE TO HOLIDAYS IN CHINA
Supramax
Flat start to week followed by a slight gain in rates for Supramaxes, says Fearnleys in its latest weekly report.
According to Fear ...
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- GAC Shipping (India) Pvt Ltd
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- Africa Commodities Group - South Africa
- Merrill Lynch Commodities Europe
- SMG Consultants - Indonesia
- Parliament of New Zealand
- Siam City Cement PLC, Thailand
- Coal and Oil Company - UAE
- South Luzon Thermal Energy Corporation
- Heidelberg Cement - Germany
- Directorate Of Revenue Intelligence - India
- Ind-Barath Power Infra Limited - India
- Borneo Indobara - Indonesia
- Sarangani Energy Corporation, Philippines
- Anglo American - United Kingdom
- Deloitte Consulting - India
- Vijayanagar Sugar Pvt Ltd - India
- Wood Mackenzie - Singapore
- Sinarmas Energy and Mining - Indonesia
- PNOC Exploration Corporation - Philippines
- Altura Mining Limited, Indonesia
- Jaiprakash Power Ventures ltd
- Attock Cement Pakistan Limited
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kideco Jaya Agung - Indonesia
- Aditya Birla Group - India
- Globalindo Alam Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indogreen Group - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bhoruka Overseas - Indonesia
- Vedanta Resources Plc - India
- Salva Resources Pvt Ltd - India
- Coalindo Energy - Indonesia
- Petron Corporation, Philippines
- Ministry of Mines - Canada
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Bharathi Cement Corporation - India
- Global Coal Blending Company Limited - Australia
- Banpu Public Company Limited - Thailand
- IHS Mccloskey Coal Group - USA
- Edison Trading Spa - Italy
- PowerSource Philippines DevCo
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Port Waratah Coal Services - Australia
- Semirara Mining and Power Corporation, Philippines
- Xindia Steels Limited - India
- Sical Logistics Limited - India
- Kaltim Prima Coal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Therma Luzon, Inc, Philippines
- The State Trading Corporation of India Ltd
- Malabar Cements Ltd - India
- Grasim Industreis Ltd - India
- Economic Council, Georgia
- Energy Link Ltd, New Zealand
- Sindya Power Generating Company Private Ltd
- Pendopo Energi Batubara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Standard Chartered Bank - UAE
- Independent Power Producers Association of India
- Baramulti Group, Indonesia
- Carbofer General Trading SA - India
- MS Steel International - UAE
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- Chettinad Cement Corporation Ltd - India
- Commonwealth Bank - Australia
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- ICICI Bank Limited - India
- Minerals Council of Australia
- Mintek Dendrill Indonesia
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Iligan Light & Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Global Business Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Bayan Resources Tbk. - Indonesia
- Goldman Sachs - Singapore
- Meralco Power Generation, Philippines
- ASAPP Information Group - India
- McConnell Dowell - Australia
- Ambuja Cements Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Videocon Industries ltd - India
- Binh Thuan Hamico - Vietnam
- Leighton Contractors Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- Posco Energy - South Korea
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Sojitz Corporation - Japan
- Madhucon Powers Ltd - India
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Indian Oil Corporation Limited
- Indian Energy Exchange, India
- SMC Global Power, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Central Java Power - Indonesia
- Siam City Cement - Thailand
- Bhushan Steel Limited - India
- Mjunction Services Limited - India
- Medco Energi Mining Internasional
- Simpson Spence & Young - Indonesia
- Singapore Mercantile Exchange
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Barasentosa Lestari - Indonesia
- Eastern Energy - Thailand
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- SN Aboitiz Power Inc, Philippines
- Orica Australia Pty. Ltd.
- Power Finance Corporation Ltd., India
- VISA Power Limited - India
- Planning Commission, India
- Australian Coal Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Mining Services - Indonesia
- Cigading International Bulk Terminal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- India Bulls Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Ministry of Transport, Egypt
- Samtan Co., Ltd - South Korea
- Agrawal Coal Company - India
- Karaikal Port Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Asmin Koalindo Tuhup - Indonesia
- The Treasury - Australian Government
- Bhatia International Limited - India
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- White Energy Company Limited
- Metalloyd Limited - United Kingdom
- Lanco Infratech Ltd - India
- LBH Netherlands Bv - Netherlands
- GMR Energy Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Tata Chemicals Ltd - India
- London Commodity Brokers - England
- Vizag Seaport Private Limited - India
- Wilmar Investment Holdings
- Chamber of Mines of South Africa
- Gujarat Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- Alfred C Toepfer International GmbH - Germany
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Sidhee Cement - India
- Larsen & Toubro Limited - India
- Makarim & Taira - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- Romanian Commodities Exchange
- New Zealand Coal & Carbon
- Bulk Trading Sa - Switzerland
- Ceylon Electricity Board - Sri Lanka
- Manunggal Multi Energi - Indonesia
- Georgia Ports Authority, United States
- Global Green Power PLC Corporation, Philippines
- Bangladesh Power Developement Board
- Coastal Gujarat Power Limited - India
- Dalmia Cement Bharat India
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- Electricity Authority, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kalimantan Lumbung Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- Indo Tambangraya Megah - Indonesia
- Kobexindo Tractors - Indoneisa
- Ministry of Finance - Indonesia
- Sakthi Sugars Limited - India
- Star Paper Mills Limited - India
- The University of Queensland
- CNBM International Corporation - China
- TeaM Sual Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- PTC India Limited - India
- Latin American Coal - Colombia
- Intertek Mineral Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- OPG Power Generation Pvt Ltd - India
- Energy Development Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Generating Authority of Thailand
- Parry Sugars Refinery, India
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