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Wednesday, 12 October 16
INDIAN STEELMAKERS' DELEVERAGING AT RISK ON COKING COAL PRICE JUMP - FITCH
 The sharp increase in coking coal prices since August 2016 could squeeze Indian steelmakers' profitability and threaten their deleveraging, Fitch Ratings says.
The risk will increase if high coking coal prices persist and domestic steel demand growth remains weak. Leverage for producers such as Tata Steel Limited (BB/Rating Watch Evolving) and JSW Steel Ltd (BB/Negative) jumped in the financial year ending March 2016 (FY16), mainly due to poor profitability, and sustained pressure on margins would hamper the deleveraging process.
Prices for hard coking coal for export by Australia as of 30 September 2016 were 125% (USD100/tonne) higher than the average in the quarter ended June 2016 (1QFY17), according to data from The Steel Index. Prices rallied following China's decision to limit coal mines' operating days to 276 a year, from 330 before, to restructure the industry and improve its profitability. Others issues such as flooding in China's Shanxi province, which reduced supply, and a number of unplanned mine outages in Australia also supported the price rise.
The increase in raw material costs for Indian steel producers could shrink margins, if the cost rise is not passed on to consumers. For example, we estimate that a USD50/tonne increase in Tata Steel's coking coal cost in 1QFY17 would have reduced consolidated EBITDA by around 35%, if all else stayed the same. Similarly, JSW Steel's 1QFY17 consolidated EBITDA would have fallen by around 25%. The impact of higher coal costs would be offset if we assume price realisations for the two companies were 5%-10% higher.
However, the ability of steelmakers in India to raise prices to counter any sustained cost increase is likely to be constrained if weak domestic demand growth persists amid increased capacity. Domestic consumption in April-September 2016 rose by just 2.5% yoy, compared with 5.9% in FY16. Meanwhile, producers, including Tata Steel and JSW Steel, aim to increase sales volume after recent capacity expansions.
The full impact of the recent jump in coking coal prices on steelmakers will be felt from the later part of 3QFY17, as volumes are mostly traded on a contractual basis and priced using monthly or quarterly averages, and companies generally keep two to three months' worth of inventories. JSW Steel relies solely on imported coking coal and is therefore exposed to the cost rises. Tata Steel's Indian operations are less susceptible to the rise in coking coal prices as its own production caters to roughly 45% of its requirements, but its overseas units are at higher risk as they rely on imports.
While short-term supply disruptions are being resolved, it is yet unclear how China's policy on coal will evolve. Steel makers in China have recently requested the government to allow higher coal output to alleviate cost pressures. However, coking coal prices could remain high in the absence of a relaxation in operating guidelines for mines. Fitch raised its mid-cycle price assumption for hard coking coal by around 10% to USD110/tonne for the long term in August 2016.
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Monday, 24 October 16
U.S WEEKLY COAL PRODUCTION DECLINED 3.2% TO 16 MMST WEEK OVER WEEK
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16 million short tons ...
Monday, 24 October 16
DRY BULK:MARKET ENDS WEEK WITH MIXED REACTIONS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities ending with mixed direction as Cape and BDI was declined ...
Thursday, 20 October 16
THE PORT OF NEWCASTLE SHIPPED 16.97 PERCENT MORE COAL IN SEPTEMBER
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port has shipped $AU 1,216.7 m ...
Thursday, 20 October 16
A SUPRAMAX HAVE BEEN FIXED AT $12,500 FOR A INDIA TO BANGLADESH TRIP - FEARNLEYS
Supramax
A bit more activities with modest upturn in rates.
According to Fearnleys weekly report, US Gulf trip to Skaw-Passero has seen cons ...
Wednesday, 19 October 16
THE SHIPPING MARKET IS IN A WAIT AND SEE MODE - INTERMODAL
We are now heading towards the end of a rather volatile 2016 for the dry bulk segment. During the last 10 months there were never any clear indicat ...
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- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- Aditya Birla Group - India
- European Bulk Services B.V. - Netherlands
- Kepco SPC Power Corporation, Philippines
- Borneo Indobara - Indonesia
- GMR Energy Limited - India
- Eastern Coal Council - USA
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- Tamil Nadu electricity Board
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- New Zealand Coal & Carbon
- Orica Mining Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Iligan Light & Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- Altura Mining Limited, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Mjunction Services Limited - India
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Transport, Egypt
- Australian Coal Association
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- Planning Commission, India
- Mintek Dendrill Indonesia
- Romanian Commodities Exchange
- Thai Mozambique Logistica
- Sindya Power Generating Company Private Ltd
- McConnell Dowell - Australia
- Karbindo Abesyapradhi - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate General of MIneral and Coal - Indonesia
- Medco Energi Mining Internasional
- SN Aboitiz Power Inc, Philippines
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Coal and Oil Company - UAE
- Vedanta Resources Plc - India
- Bukit Makmur.PT - Indonesia
- Latin American Coal - Colombia
- SMC Global Power, Philippines
- Miang Besar Coal Terminal - Indonesia
- Meralco Power Generation, Philippines
- Posco Energy - South Korea
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Singapore Mercantile Exchange
- Orica Australia Pty. Ltd.
- Rashtriya Ispat Nigam Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Indian Oil Corporation Limited
- GVK Power & Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Energy - Thailand
- Tata Chemicals Ltd - India
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- Electricity Authority, New Zealand
- Salva Resources Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Energy Link Ltd, New Zealand
- Malabar Cements Ltd - India
- IEA Clean Coal Centre - UK
- Barasentosa Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Savvy Resources Ltd - HongKong
- Siam City Cement PLC, Thailand
- Globalindo Alam Lestari - Indonesia
- Pendopo Energi Batubara - Indonesia
- Price Waterhouse Coopers - Russia
- Jindal Steel & Power Ltd - India
- CNBM International Corporation - China
- Wilmar Investment Holdings
- Krishnapatnam Port Company Ltd. - India
- Power Finance Corporation Ltd., India
- Makarim & Taira - Indonesia
- Ministry of Finance - Indonesia
- Petron Corporation, Philippines
- Parliament of New Zealand
- Madhucon Powers Ltd - India
- ICICI Bank Limited - India
- Bukit Baiduri Energy - Indonesia
- Mercator Lines Limited - India
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Uttam Galva Steels Limited - India
- Attock Cement Pakistan Limited
- Leighton Contractors Pty Ltd - Australia
- Sinarmas Energy and Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- The Treasury - Australian Government
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- Oldendorff Carriers - Singapore
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- Central Java Power - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Baramulti Group, Indonesia
- Gujarat Sidhee Cement - India
- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Sical Logistics Limited - India
- Cement Manufacturers Association - India
- Electricity Generating Authority of Thailand
- Dalmia Cement Bharat India
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Billiton Holdings Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Bhatia International Limited - India
- Metalloyd Limited - United Kingdom
- Essar Steel Hazira Ltd - India
- Star Paper Mills Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Standard Chartered Bank - UAE
- Indonesian Coal Mining Association
- India Bulls Power Limited - India
- Binh Thuan Hamico - Vietnam
- Semirara Mining Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Global Business Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Africa Commodities Group - South Africa
- TeaM Sual Corporation - Philippines
- Bulk Trading Sa - Switzerland
- MS Steel International - UAE
- CIMB Investment Bank - Malaysia
- Xindia Steels Limited - India
- Marubeni Corporation - India
- Deloitte Consulting - India
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Commonwealth Bank - Australia
- Antam Resourcindo - Indonesia
- Parry Sugars Refinery, India
- Central Electricity Authority - India
- Sree Jayajothi Cements Limited - India
- Port Waratah Coal Services - Australia
- Renaissance Capital - South Africa
- Indian Energy Exchange, India
- Directorate Of Revenue Intelligence - India
- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- GAC Shipping (India) Pvt Ltd
- Bhushan Steel Limited - India
- International Coal Ventures Pvt Ltd - India
- Thiess Contractors Indonesia
- Asmin Koalindo Tuhup - Indonesia
- SMG Consultants - Indonesia
- LBH Netherlands Bv - Netherlands
- Energy Development Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Bharathi Cement Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Intertek Mineral Services - Indonesia
- Banpu Public Company Limited - Thailand
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Formosa Plastics Group - Taiwan
- Interocean Group of Companies - India
- IHS Mccloskey Coal Group - USA
- San Jose City I Power Corp, Philippines
- Vizag Seaport Private Limited - India
- Ambuja Cements Ltd - India
- Trasteel International SA, Italy
- Global Coal Blending Company Limited - Australia
- Chamber of Mines of South Africa
- Kobexindo Tractors - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Indo Tambangraya Megah - Indonesia
- Mercuria Energy - Indonesia
- The University of Queensland
- Economic Council, Georgia
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- Indika Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Minerals Council of Australia
- Grasim Industreis Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Semirara Mining and Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Riau Bara Harum - Indonesia
- Jaiprakash Power Ventures ltd
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Timah Investasi Mineral - Indoneisa
- Lanco Infratech Ltd - India
- Meenaskhi Energy Private Limited - India
- South Luzon Thermal Energy Corporation
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