We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 23 September 16
EIA SEES U.S. COAL WEEKLY OUTPUT INCREASE
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16.1 million short ton ...
Thursday, 22 September 16
CHINA IS THE PRICE-SETTING COUNTRY FOR GLOBAL THERMAL COAL
COALspot.com: China has been the driver of global coal growth since 2009. When China became the largest coal importer in 2011, the country also has ...
Thursday, 22 September 16
SUPRAMAXES ARE ACHIEVING AROUND $7000 FOR A TRIP WITH SINGAPORE DELIVERY VIA INDONESIA TO CHINA
Supramax
A slow start to the week in the Supramax segment in the Atlantic with not much being reported.
In the Blacksea Supramaxes are getti ...
Wednesday, 21 September 16
THE CAPESIZE MARKET HAS BEEN ON A RALLYING TREND SINCE THE END OF AUGUST - GEORGE LAZARIDIS
The Capesize market has been on a rallying trend since the end of August, fuelled mainly by the chase by traders to pre-stock before the typical pi ...
Wednesday, 21 September 16
SHIPPING MARKET INSIGHT - PANOS MAKRINOS
Amidst a challenging dry bulk and tanker market, very little time has been spent on the offshore industry developments during the past couple of ye ...
|
|
|
Showing 2276 to 2280 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- SMC Global Power, Philippines
- Mintek Dendrill Indonesia
- Holcim Trading Pte Ltd - Singapore
- Chamber of Mines of South Africa
- Directorate General of MIneral and Coal - Indonesia
- VISA Power Limited - India
- Independent Power Producers Association of India
- Attock Cement Pakistan Limited
- Samtan Co., Ltd - South Korea
- Global Green Power PLC Corporation, Philippines
- Indika Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Goldman Sachs - Singapore
- Karbindo Abesyapradhi - Indoneisa
- London Commodity Brokers - England
- Anglo American - United Kingdom
- Interocean Group of Companies - India
- CNBM International Corporation - China
- GN Power Mariveles Coal Plant, Philippines
- Kartika Selabumi Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Antam Resourcindo - Indonesia
- Posco Energy - South Korea
- Indogreen Group - Indonesia
- Commonwealth Bank - Australia
- Trasteel International SA, Italy
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhatia International Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- Leighton Contractors Pty Ltd - Australia
- Parliament of New Zealand
- Star Paper Mills Limited - India
- Barasentosa Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- Carbofer General Trading SA - India
- Africa Commodities Group - South Africa
- Central Electricity Authority - India
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- ASAPP Information Group - India
- Maheswari Brothers Coal Limited - India
- San Jose City I Power Corp, Philippines
- Deloitte Consulting - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- New Zealand Coal & Carbon
- Eastern Coal Council - USA
- Dalmia Cement Bharat India
- Billiton Holdings Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Tamil Nadu electricity Board
- Riau Bara Harum - Indonesia
- Jaiprakash Power Ventures ltd
- Australian Commodity Traders Exchange
- Essar Steel Hazira Ltd - India
- OPG Power Generation Pvt Ltd - India
- SMG Consultants - Indonesia
- Manunggal Multi Energi - Indonesia
- IEA Clean Coal Centre - UK
- Siam City Cement PLC, Thailand
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Agrawal Coal Company - India
- Bulk Trading Sa - Switzerland
- Singapore Mercantile Exchange
- Parry Sugars Refinery, India
- Merrill Lynch Commodities Europe
- Kobexindo Tractors - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Uttam Galva Steels Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- Coalindo Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- PTC India Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ceylon Electricity Board - Sri Lanka
- Cement Manufacturers Association - India
- Bharathi Cement Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Marubeni Corporation - India
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Georgia Ports Authority, United States
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- India Bulls Power Limited - India
- European Bulk Services B.V. - Netherlands
- Bukit Baiduri Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Larsen & Toubro Limited - India
- Sarangani Energy Corporation, Philippines
- Lanco Infratech Ltd - India
- Ind-Barath Power Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- Intertek Mineral Services - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Orica Australia Pty. Ltd.
- White Energy Company Limited
- Makarim & Taira - Indonesia
- Eastern Energy - Thailand
- Romanian Commodities Exchange
- Kapuas Tunggal Persada - Indonesia
- Bhoruka Overseas - Indonesia
- Gujarat Sidhee Cement - India
- Grasim Industreis Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Straits Asia Resources Limited - Singapore
- Rio Tinto Coal - Australia
- Sinarmas Energy and Mining - Indonesia
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Siam City Cement - Thailand
- Formosa Plastics Group - Taiwan
- MS Steel International - UAE
- Renaissance Capital - South Africa
- Bukit Makmur.PT - Indonesia
- Port Waratah Coal Services - Australia
- Videocon Industries ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- The University of Queensland
- Price Waterhouse Coopers - Russia
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Mines - Canada
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Kaltim Prima Coal - Indonesia
- Australian Coal Association
- Semirara Mining Corp, Philippines
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Thiess Contractors Indonesia
- Petron Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Electricity Authority, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- ICICI Bank Limited - India
- Thai Mozambique Logistica
- GMR Energy Limited - India
- Vedanta Resources Plc - India
- Kideco Jaya Agung - Indonesia
- Karaikal Port Pvt Ltd - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Medco Energi Mining Internasional
- Altura Mining Limited, Indonesia
- Central Java Power - Indonesia
- International Coal Ventures Pvt Ltd - India
- Meralco Power Generation, Philippines
- Iligan Light & Power Inc, Philippines
- Indian Energy Exchange, India
- Neyveli Lignite Corporation Ltd, - India
- South Luzon Thermal Energy Corporation
- Banpu Public Company Limited - Thailand
- Savvy Resources Ltd - HongKong
- Electricity Generating Authority of Thailand
- Therma Luzon, Inc, Philippines
- Metalloyd Limited - United Kingdom
- Energy Link Ltd, New Zealand
- Minerals Council of Australia
- Aditya Birla Group - India
- Ministry of Transport, Egypt
- Wood Mackenzie - Singapore
- Indian Oil Corporation Limited
- Power Finance Corporation Ltd., India
- Krishnapatnam Port Company Ltd. - India
- LBH Netherlands Bv - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- TeaM Sual Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Xindia Steels Limited - India
- Economic Council, Georgia
- Edison Trading Spa - Italy
- Mercuria Energy - Indonesia
- Kumho Petrochemical, South Korea
- Indo Tambangraya Megah - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Finance - Indonesia
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Mjunction Services Limited - India
- Malabar Cements Ltd - India
- Binh Thuan Hamico - Vietnam
|
| |
| |
|
