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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, 13 February 24
WHAT IS THE OUTLOOK FOR THE NATURAL GAS SPOT PRICE IN 2024 AND 2025? EIA
We expect the U.S. benchmark Henry Hub natural gas spot price to average higher in 2024 and 2025 than in 2023, but to remain lower than $3.00 per m ...
Monday, 12 February 24
US THERMAL COAL EXPORTS HIT 5-YEAR HIGHS AND TOP $5 BLN IN 2023 - REUTERS
United States exporters of thermal coal earned more than $5 billion in 2023 as they shipped out more than 32.5 million metric tons of the high-poll ...
Tuesday, 06 February 24
NEW E-FUELS PROJECT TO MAKE INTERNATIONAL SHIPPING CLIMATE-NEUTRAL - RINA
Transport and trade on the ocean blue must be made much greener. This is the goal of the new €17 million European GAMMA project, where compani ...
Tuesday, 06 February 24
INDIA SEES ANNUAL COAL OUTPUT UP 10.9% IN 2024/25 - REUTERS
India expects domestic coal output to increase by 10.9% to 1.13 billion metric tons in the fiscal year ending March 2025, a senior government offic ...
Tuesday, 06 February 24
INDIA'S COAL PRODUCTION INCREASES BY 10.3% TO 99.73 MILLION TONNE IN JANUARY - PTI
The country’s coal output rose 10.3 per cent to 99.73 Million Tonne (MT) in January, over the same month in the previous fiscal.
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- Star Paper Mills Limited - India
- White Energy Company Limited
- Binh Thuan Hamico - Vietnam
- Bhatia International Limited - India
- Aboitiz Power Corporation - Philippines
- Madhucon Powers Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Deloitte Consulting - India
- Eastern Coal Council - USA
- Rashtriya Ispat Nigam Limited - India
- International Coal Ventures Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Ceylon Electricity Board - Sri Lanka
- OPG Power Generation Pvt Ltd - India
- IEA Clean Coal Centre - UK
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- Oldendorff Carriers - Singapore
- Petron Corporation, Philippines
- Planning Commission, India
- Orica Australia Pty. Ltd.
- Commonwealth Bank - Australia
- Karbindo Abesyapradhi - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Sree Jayajothi Cements Limited - India
- Toyota Tsusho Corporation, Japan
- Renaissance Capital - South Africa
- Aditya Birla Group - India
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Holcim Trading Pte Ltd - Singapore
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Orica Mining Services - Indonesia
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- The University of Queensland
- Jaiprakash Power Ventures ltd
- The Treasury - Australian Government
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- SMC Global Power, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indian Oil Corporation Limited
- Sindya Power Generating Company Private Ltd
- Chamber of Mines of South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Minerals Council of Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indika Energy - Indonesia
- ASAPP Information Group - India
- Indogreen Group - Indonesia
- Simpson Spence & Young - Indonesia
- IHS Mccloskey Coal Group - USA
- GMR Energy Limited - India
- Timah Investasi Mineral - Indoneisa
- Eastern Energy - Thailand
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- Edison Trading Spa - Italy
- Standard Chartered Bank - UAE
- Electricity Generating Authority of Thailand
- Bulk Trading Sa - Switzerland
- Vizag Seaport Private Limited - India
- Tamil Nadu electricity Board
- Singapore Mercantile Exchange
- Ambuja Cements Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Mjunction Services Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Price Waterhouse Coopers - Russia
- Port Waratah Coal Services - Australia
- Cement Manufacturers Association - India
- TeaM Sual Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- PowerSource Philippines DevCo
- Central Electricity Authority - India
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Parliament of New Zealand
- Baramulti Group, Indonesia
- Bharathi Cement Corporation - India
- Samtan Co., Ltd - South Korea
- Gujarat Sidhee Cement - India
- London Commodity Brokers - England
- Kalimantan Lumbung Energi - Indonesia
- Kumho Petrochemical, South Korea
- Carbofer General Trading SA - India
- Barasentosa Lestari - Indonesia
- Siam City Cement PLC, Thailand
- Independent Power Producers Association of India
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- VISA Power Limited - India
- Jindal Steel & Power Ltd - India
- Sical Logistics Limited - India
- Mercuria Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Lanco Infratech Ltd - India
- Vedanta Resources Plc - India
- Global Green Power PLC Corporation, Philippines
- McConnell Dowell - Australia
- Central Java Power - Indonesia
- Mercator Lines Limited - India
- Antam Resourcindo - Indonesia
- Savvy Resources Ltd - HongKong
- Borneo Indobara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Malabar Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- India Bulls Power Limited - India
- Energy Link Ltd, New Zealand
- Sakthi Sugars Limited - India
- Power Finance Corporation Ltd., India
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- Bayan Resources Tbk. - Indonesia
- Formosa Plastics Group - Taiwan
- The State Trading Corporation of India Ltd
- Ministry of Mines - Canada
- GAC Shipping (India) Pvt Ltd
- Metalloyd Limited - United Kingdom
- Electricity Authority, New Zealand
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- LBH Netherlands Bv - Netherlands
- Thai Mozambique Logistica
- Africa Commodities Group - South Africa
- Kaltim Prima Coal - Indonesia
- Maheswari Brothers Coal Limited - India
- New Zealand Coal & Carbon
- PTC India Limited - India
- Leighton Contractors Pty Ltd - Australia
- Billiton Holdings Pty Ltd - Australia
- Latin American Coal - Colombia
- Miang Besar Coal Terminal - Indonesia
- Siam City Cement - Thailand
- San Jose City I Power Corp, Philippines
- Indian Energy Exchange, India
- Global Business Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Xindia Steels Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Bangladesh Power Developement Board
- Dalmia Cement Bharat India
- Tata Chemicals Ltd - India
- Intertek Mineral Services - Indonesia
- Global Coal Blending Company Limited - Australia
- Bhushan Steel Limited - India
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Australian Commodity Traders Exchange
- Meralco Power Generation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Karaikal Port Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- Thiess Contractors Indonesia
- Indonesian Coal Mining Association
- Ministry of Finance - Indonesia
- Parry Sugars Refinery, India
- Uttam Galva Steels Limited - India
- Merrill Lynch Commodities Europe
- Larsen & Toubro Limited - India
- Sojitz Corporation - Japan
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- Riau Bara Harum - Indonesia
- Iligan Light & Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- ICICI Bank Limited - India
- Australian Coal Association
- Sarangani Energy Corporation, Philippines
- Agrawal Coal Company - India
- Rio Tinto Coal - Australia
- SN Aboitiz Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Romanian Commodities Exchange
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Coal and Oil Company - UAE
- Neyveli Lignite Corporation Ltd, - India
- Therma Luzon, Inc, Philippines
- Interocean Group of Companies - India
- Grasim Industreis Ltd - India
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- CNBM International Corporation - China
- Goldman Sachs - Singapore
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Altura Mining Limited, Indonesia
- Kideco Jaya Agung - Indonesia
- Videocon Industries ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- Marubeni Corporation - India
- Georgia Ports Authority, United States
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