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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, 19 July 16
INDONESIAN THERMAL COAL INDEXES CONTINUALLY FIRM UP ON ROBUST BUYING INTEREST - CS COAL INDEX
COALspot.com: Average 5000 GAR coal index of Indonesian origin rose One percent week over week to averaging $40.38 per ton this past week, shows CS ...
Monday, 18 July 16
FROM PIT TO PORT: DRY BULK NEEDS A NEW PATH TO PROFITABILITY - TOC EUROPE
During the golden years for commodities, from 2005 to 2014, high demand and big profit margins pushed companies to produce more and more, sacrifici ...
Monday, 18 July 16
BALTIC DRY INDEX REMAIN FIRM, UP BY 5.97 WEEK OVER WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to remain firm with all segments ending in posi ...
Friday, 15 July 16
US COAL PRODUCTION DOWN 8.4% WEEK-OVER-WEEK
COALspot.com – U.S, world’s second largest coal producers has produced approximately totalled an estimated 12.9 million short tons (mms ...
Thursday, 14 July 16
SHIPPING'S HALF YEAR REPORT - 'MUST DO BETTER' - CLARKSONS
It’s the time of year, with the school holidays and end of term approaching, that many pupils will nervously take home their school reports t ...
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- Anglo American - United Kingdom
- Georgia Ports Authority, United States
- Gujarat Mineral Development Corp Ltd - India
- San Jose City I Power Corp, Philippines
- Medco Energi Mining Internasional
- Merrill Lynch Commodities Europe
- The Treasury - Australian Government
- Intertek Mineral Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Eastern Energy - Thailand
- PowerSource Philippines DevCo
- Global Green Power PLC Corporation, Philippines
- Rio Tinto Coal - Australia
- Interocean Group of Companies - India
- Wilmar Investment Holdings
- Timah Investasi Mineral - Indoneisa
- Videocon Industries ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Holcim Trading Pte Ltd - Singapore
- Dalmia Cement Bharat India
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- New Zealand Coal & Carbon
- Kepco SPC Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Eastern Coal Council - USA
- The State Trading Corporation of India Ltd
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Deloitte Consulting - India
- Barasentosa Lestari - Indonesia
- Sojitz Corporation - Japan
- Orica Australia Pty. Ltd.
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Krishnapatnam Port Company Ltd. - India
- Coal and Oil Company - UAE
- Gujarat Sidhee Cement - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Toyota Tsusho Corporation, Japan
- Price Waterhouse Coopers - Russia
- Savvy Resources Ltd - HongKong
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- Wood Mackenzie - Singapore
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- ASAPP Information Group - India
- Ind-Barath Power Infra Limited - India
- Electricity Authority, New Zealand
- Vedanta Resources Plc - India
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- Romanian Commodities Exchange
- Aboitiz Power Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Oldendorff Carriers - Singapore
- Semirara Mining and Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Mjunction Services Limited - India
- Agrawal Coal Company - India
- Carbofer General Trading SA - India
- Indogreen Group - Indonesia
- South Luzon Thermal Energy Corporation
- Pendopo Energi Batubara - Indonesia
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Bhatia International Limited - India
- White Energy Company Limited
- Baramulti Group, Indonesia
- Australian Commodity Traders Exchange
- Energy Development Corp, Philippines
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Central Electricity Authority - India
- Energy Link Ltd, New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- The University of Queensland
- Bhushan Steel Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Goldman Sachs - Singapore
- Coalindo Energy - Indonesia
- MS Steel International - UAE
- Thai Mozambique Logistica
- Manunggal Multi Energi - Indonesia
- Xindia Steels Limited - India
- Global Coal Blending Company Limited - Australia
- ICICI Bank Limited - India
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- IEA Clean Coal Centre - UK
- International Coal Ventures Pvt Ltd - India
- Indonesian Coal Mining Association
- Jindal Steel & Power Ltd - India
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- Siam City Cement - Thailand
- Makarim & Taira - Indonesia
- Borneo Indobara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- GMR Energy Limited - India
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Riau Bara Harum - Indonesia
- Chettinad Cement Corporation Ltd - India
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- Port Waratah Coal Services - Australia
- Sarangani Energy Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- Mercuria Energy - Indonesia
- Madhucon Powers Ltd - India
- VISA Power Limited - India
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- Australian Coal Association
- TeaM Sual Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Therma Luzon, Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Meralco Power Generation, Philippines
- McConnell Dowell - Australia
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- Salva Resources Pvt Ltd - India
- Tata Chemicals Ltd - India
- Posco Energy - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMG Consultants - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jaiprakash Power Ventures ltd
- Directorate Of Revenue Intelligence - India
- Planning Commission, India
- GVK Power & Infra Limited - India
- Singapore Mercantile Exchange
- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- Bahari Cakrawala Sebuku - Indonesia
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Bukit Makmur.PT - Indonesia
- Renaissance Capital - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Chamber of Mines of South Africa
- Maheswari Brothers Coal Limited - India
- Mintek Dendrill Indonesia
- Iligan Light & Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Africa Commodities Group - South Africa
- Semirara Mining Corp, Philippines
- Edison Trading Spa - Italy
- SN Aboitiz Power Inc, Philippines
- Cement Manufacturers Association - India
- Ministry of Mines - Canada
- Orica Mining Services - Indonesia
- Indian Oil Corporation Limited
- Ministry of Finance - Indonesia
- Bulk Trading Sa - Switzerland
- Bangladesh Power Developement Board
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- Larsen & Toubro Limited - India
- Star Paper Mills Limited - India
- Banpu Public Company Limited - Thailand
- Economic Council, Georgia
- Essar Steel Hazira Ltd - India
- LBH Netherlands Bv - Netherlands
- Mercator Lines Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ambuja Cements Ltd - India
- Commonwealth Bank - Australia
- Attock Cement Pakistan Limited
- Altura Mining Limited, Indonesia
- Samtan Co., Ltd - South Korea
- Aditya Birla Group - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Independent Power Producers Association of India
- Rashtriya Ispat Nigam Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Heidelberg Cement - Germany
- Leighton Contractors Pty Ltd - Australia
- Sakthi Sugars Limited - India
- Power Finance Corporation Ltd., India
- Bukit Baiduri Energy - Indonesia
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