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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, 28 July 16
LAST WEEK ENDING UP WITH BUSIER TONES FOR SUPRAMAXES NOW COOLING DOWN - FEARNLEYS
Supramax
Last week ending up with busier tones for Supramaxes now cooling down as with index being down to 684. Average daily earnings for Supram ...
Wednesday, 27 July 16
RATES FOR THE SMALLER SIZES OVER-PERFORMED THE MARKET LAST WEEK - INTERMODAL
The decline the BDI noted last week was somewhat expected given the fact that the market has been overall firming for almost a month no ...
Wednesday, 27 July 16
GLOBAL OIL SUPPLY IS EXPECTED TO REMAIN HIGHER THAN GLOBAL CONSUMPTION IN 2016 - CHRISTOPHER WHITTY
Global oil supply is expected to remain higher than global consumption in 2016, keeping oil prices at relatively low levels this summer compared wi ...
Tuesday, 26 July 16
NORTH P&I CLUB EXPLAINS HOW TO AVOID CLAIMS FOR SELF-COOKING SOYA BEANS
KNOWLEDGE TO ELEVATE
North P&I Club has advised its members to be extra vigilant during loading and transport of soya beans to ensure they ...
Monday, 25 July 16
STRONG BUYER DEMAND PUSHING UP INDONESIAN THERMAL COAL INDICES
COALspot.com: Average 5000 GAR coal index of Indonesian origin rose 0.73 percent week over week to averaging $40.83 per ton this past week, shows C ...
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- Lanco Infratech Ltd - India
- Timah Investasi Mineral - Indoneisa
- CIMB Investment Bank - Malaysia
- PNOC Exploration Corporation - Philippines
- Siam City Cement - Thailand
- Economic Council, Georgia
- Central Java Power - Indonesia
- Samtan Co., Ltd - South Korea
- Riau Bara Harum - Indonesia
- Borneo Indobara - Indonesia
- Sojitz Corporation - Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Baramulti Group, Indonesia
- Bhoruka Overseas - Indonesia
- SMC Global Power, Philippines
- Energy Development Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Romanian Commodities Exchange
- Holcim Trading Pte Ltd - Singapore
- Medco Energi Mining Internasional
- Jaiprakash Power Ventures ltd
- Price Waterhouse Coopers - Russia
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- Standard Chartered Bank - UAE
- Anglo American - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Xindia Steels Limited - India
- Bulk Trading Sa - Switzerland
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Carbofer General Trading SA - India
- Globalindo Alam Lestari - Indonesia
- Africa Commodities Group - South Africa
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Minerals Council of Australia
- Sree Jayajothi Cements Limited - India
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Sidhee Cement - India
- CNBM International Corporation - China
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- South Luzon Thermal Energy Corporation
- Alfred C Toepfer International GmbH - Germany
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- Goldman Sachs - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Mineral Development Corp Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Chettinad Cement Corporation Ltd - India
- Port Waratah Coal Services - Australia
- Directorate Of Revenue Intelligence - India
- Uttam Galva Steels Limited - India
- Power Finance Corporation Ltd., India
- Ambuja Cements Ltd - India
- Latin American Coal - Colombia
- ICICI Bank Limited - India
- Semirara Mining Corp, Philippines
- Mintek Dendrill Indonesia
- Thai Mozambique Logistica
- GMR Energy Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Larsen & Toubro Limited - India
- Madhucon Powers Ltd - India
- Bukit Makmur.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Kartika Selabumi Mining - Indonesia
- London Commodity Brokers - England
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Makarim & Taira - Indonesia
- Kaltim Prima Coal - Indonesia
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Ceylon Electricity Board - Sri Lanka
- Karbindo Abesyapradhi - Indoneisa
- Australian Commodity Traders Exchange
- SMG Consultants - Indonesia
- Ministry of Transport, Egypt
- Ministry of Mines - Canada
- Kideco Jaya Agung - Indonesia
- OPG Power Generation Pvt Ltd - India
- Star Paper Mills Limited - India
- Bharathi Cement Corporation - India
- Essar Steel Hazira Ltd - India
- Barasentosa Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Indika Energy - Indonesia
- Kumho Petrochemical, South Korea
- Commonwealth Bank - Australia
- Manunggal Multi Energi - Indonesia
- Parry Sugars Refinery, India
- Attock Cement Pakistan Limited
- Rio Tinto Coal - Australia
- Pendopo Energi Batubara - Indonesia
- Cement Manufacturers Association - India
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- New Zealand Coal & Carbon
- San Jose City I Power Corp, Philippines
- Bhatia International Limited - India
- Toyota Tsusho Corporation, Japan
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- SN Aboitiz Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Vizag Seaport Private Limited - India
- MS Steel International - UAE
- Karaikal Port Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Global Green Power PLC Corporation, Philippines
- McConnell Dowell - Australia
- Edison Trading Spa - Italy
- Kobexindo Tractors - Indoneisa
- Marubeni Corporation - India
- Meralco Power Generation, Philippines
- Sical Logistics Limited - India
- Cigading International Bulk Terminal - Indonesia
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Leighton Contractors Pty Ltd - Australia
- The Treasury - Australian Government
- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- IEA Clean Coal Centre - UK
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Coal and Oil Company - UAE
- Billiton Holdings Pty Ltd - Australia
- Kohat Cement Company Ltd. - Pakistan
- Australian Coal Association
- Trasteel International SA, Italy
- Aboitiz Power Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Chamber of Mines of South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Planning Commission, India
- Interocean Group of Companies - India
- TNB Fuel Sdn Bhd - Malaysia
- PTC India Limited - India
- Miang Besar Coal Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Vedanta Resources Plc - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- White Energy Company Limited
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- GN Power Mariveles Coal Plant, Philippines
- Mercuria Energy - Indonesia
- The State Trading Corporation of India Ltd
- Global Coal Blending Company Limited - Australia
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- TeaM Sual Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- Petron Corporation, Philippines
- Merrill Lynch Commodities Europe
- AsiaOL BioFuels Corp., Philippines
- Tamil Nadu electricity Board
- Global Business Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Bukit Baiduri Energy - Indonesia
- Eastern Coal Council - USA
- Videocon Industries ltd - India
- Banpu Public Company Limited - Thailand
- Georgia Ports Authority, United States
- Krishnapatnam Port Company Ltd. - India
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- Indian Oil Corporation Limited
- Bhushan Steel Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Tata Chemicals Ltd - India
- The University of Queensland
- Renaissance Capital - South Africa
- Energy Link Ltd, New Zealand
- Gujarat Electricity Regulatory Commission - India
- Posco Energy - South Korea
- International Coal Ventures Pvt Ltd - India
- Agrawal Coal Company - India
- Sarangani Energy Corporation, Philippines
- Oldendorff Carriers - Singapore
- Grasim Industreis Ltd - India
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- PowerSource Philippines DevCo
- VISA Power Limited - India
- Mercator Lines Limited - India
- Eastern Energy - Thailand
- Mjunction Services Limited - India
- Orica Australia Pty. Ltd.
- Electricity Authority, New Zealand
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