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Friday, 16 March 18
INDONESIA COAL PRICE CAP POSES LIMITED RISKS TO PRODUCERS : FITCH
 Indonesia’s cap on the benchmark price of coal sold to the domestic electricity sector is unlikely to have a significant impact on the credit profiles of Fitch-rated mining firms, which export most of their production, says Fitch Ratings. In any case, our ratings are based on average benchmark price forecasts that are broadly in line with the cap of USD70/tonne imposed until end-2019, and so will not be affected.
The price cap, announced last week and set to apply from mid-March, is part of the government’s strategy to ensure low prices for electricity consumers as it looks to support industrial competitiveness and household disposable incomes. It froze electricity prices charged to industrial consumers earlier in the year, preventing Perusahaan Listrik Negara (PLN), the state-owned monopoly distributor, from passing on rising costs as coal prices were pushed up by an unusually cold Chinese winter. The Indonesian coal price benchmark, Harga Batubara Acuan (HBA), has exceeded USD95/tonne since January 2018, which might have necessitated an increase in government subsidies to PLN if the price cap had not been imposed.
The new regulations will mean coal miners miss out on some of the short-term upside from high prevailing coal prices, to the extent that they sell production to the domestic market. The government sets domestic market obligations for miners to ensure they meet local demand, which prevents them from simply diverting output toward the overseas market.
That said, only around one-fifth of Indonesia’s 461 million tonnes of coal production was sold in the domestic market in 2017, which suggests any loss of revenue will be limited. Indika would be the most affected among our rated coal miners, as around 15% of its volumes are sold to the domestic power sector. GEO Energy, Golden Energy Resources, ABM Investama and PT Toba Bara sell less than 10% of volumes to the domestic power sector. Domestic market obligations are likely to increase over the medium term, as the government looks to contain production and conserve coal resources for local power needs, but a sharp rise next year is unlikely.
Coal firms will therefore continue to receive the market price for the majority of their production. As a result, their financial performance might still exceed our expectations at the start of the year, when we had forecast an average Newcastle benchmark (6000 kcal) price of USD72/tonne in 2018 and USD67/tonne in 2019. The HBA on which the regulations are based broadly reflect Newcastle prices.
The new price regime does not include a floor on prices, and so provides no benefit to the mining firms in the event of a downturn. Prices will continue to fluctuate as before if the market price drops below USD70/tonne.
The price ceiling is unlikely to have any meaningful impact on PLN’s standalone credit profile. We would have expected the government to compensate PLN for losses through subsidies if high coal prices and fixed electricity prices had caused under recoveries. PLN’s IDR of ‘BBB’ is equalised with the sovereign rating due to its very strong government linkages.
Source: Fitch Ratings
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Thursday, 26 April 18
COAL PRICES ARE EXPECTED TO AVERAGE $85/MT IN 2018, DOWN SLIGHTLY FROM 2017 - WORLD BANK
Coal prices rose 4 percent in the first quarter (q/q), following a surge of 34 percent in 2017, mainly due to strong consumption in China spurred b ...
Wednesday, 25 April 18
TANKER MARKET INSIGHT - THEODOROS NTALAKOS
We had the opportunity to be part of Intertanko's Hellenic Mediterranean Panel last week in the SNFCC and to present an outlook on the tanker f ...
Tuesday, 24 April 18
IMPORTING INDONESIAN COAL MAKES SENSE FOR INDIAN COASTAL PLANTS EVEN WHEN IT IS COSTLIER THAN INDIAN - ECONOMIC TIMES
Rising Indonesian coal production and lower Chinese demand have pulled down Indonesian coal prices by 22% over the last 45 days, a trend that augur ...
Tuesday, 24 April 18
IMO AIMS TO HALVE GLOBAL SHIPPING EMISSIONS - BUT WHAT WILL IT COST? - WOOD MACKENZIE
Global bunker fuel costs could rise by up to US$60 billion annually from 2020, in a full compliance scenario, when the International Maritim ...
Tuesday, 24 April 18
TWO 56K-DWT OPEN HONG KONG AND SINGAPORE WERE FIXED FOR INDONESIA COAL TRIPS TO CHINA, AT $9,500 AND $11,000 RESPECTIVELY - BALTIC BRIEFING
Capesize
This week has seen the Cape 5 timecharter weighted average almost double. Similarly, the Brazil to China ore rates climbed over $4.50, f ...
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Showing 1736 to 1740 news of total 6871 |
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- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Antam Resourcindo - Indonesia
- Thiess Contractors Indonesia
- Interocean Group of Companies - India
- Banpu Public Company Limited - Thailand
- Global Coal Blending Company Limited - Australia
- Rio Tinto Coal - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Bangladesh Power Developement Board
- Maheswari Brothers Coal Limited - India
- Electricity Authority, New Zealand
- Trasteel International SA, Italy
- Economic Council, Georgia
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- Sical Logistics Limited - India
- Indo Tambangraya Megah - Indonesia
- The Treasury - Australian Government
- The University of Queensland
- Samtan Co., Ltd - South Korea
- IHS Mccloskey Coal Group - USA
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- Bulk Trading Sa - Switzerland
- Aditya Birla Group - India
- GN Power Mariveles Coal Plant, Philippines
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Agrawal Coal Company - India
- Xindia Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Gujarat Sidhee Cement - India
- MS Steel International - UAE
- Ministry of Transport, Egypt
- Miang Besar Coal Terminal - Indonesia
- Standard Chartered Bank - UAE
- Gujarat Mineral Development Corp Ltd - India
- Power Finance Corporation Ltd., India
- SMG Consultants - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Jaiprakash Power Ventures ltd
- Siam City Cement PLC, Thailand
- Heidelberg Cement - Germany
- Ministry of Mines - Canada
- South Luzon Thermal Energy Corporation
- Coalindo Energy - Indonesia
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Central Electricity Authority - India
- Intertek Mineral Services - Indonesia
- Indian Oil Corporation Limited
- Sindya Power Generating Company Private Ltd
- Posco Energy - South Korea
- VISA Power Limited - India
- Mjunction Services Limited - India
- Straits Asia Resources Limited - Singapore
- Borneo Indobara - Indonesia
- European Bulk Services B.V. - Netherlands
- Eastern Coal Council - USA
- Bukit Baiduri Energy - Indonesia
- Mercuria Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Goldman Sachs - Singapore
- Salva Resources Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- PTC India Limited - India
- Neyveli Lignite Corporation Ltd, - India
- AsiaOL BioFuels Corp., Philippines
- Kobexindo Tractors - Indoneisa
- Bhoruka Overseas - Indonesia
- Bhatia International Limited - India
- GMR Energy Limited - India
- Dalmia Cement Bharat India
- OPG Power Generation Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Videocon Industries ltd - India
- Latin American Coal - Colombia
- Anglo American - United Kingdom
- SN Aboitiz Power Inc, Philippines
- Parry Sugars Refinery, India
- Sakthi Sugars Limited - India
- Makarim & Taira - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- GVK Power & Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Cigading International Bulk Terminal - Indonesia
- Planning Commission, India
- Karbindo Abesyapradhi - Indoneisa
- Africa Commodities Group - South Africa
- Independent Power Producers Association of India
- Asmin Koalindo Tuhup - Indonesia
- Energy Link Ltd, New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Madhucon Powers Ltd - India
- SMC Global Power, Philippines
- Medco Energi Mining Internasional
- Eastern Energy - Thailand
- Star Paper Mills Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kartika Selabumi Mining - Indonesia
- Orica Mining Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Mercator Lines Limited - India
- Siam City Cement - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Altura Mining Limited, Indonesia
- Chamber of Mines of South Africa
- Merrill Lynch Commodities Europe
- Alfred C Toepfer International GmbH - Germany
- Bhushan Steel Limited - India
- Petron Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karaikal Port Pvt Ltd - India
- Thai Mozambique Logistica
- Wilmar Investment Holdings
- Bank of Tokyo Mitsubishi UFJ Ltd
- Formosa Plastics Group - Taiwan
- Gujarat Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- White Energy Company Limited
- Indonesian Coal Mining Association
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Attock Cement Pakistan Limited
- Marubeni Corporation - India
- Singapore Mercantile Exchange
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Simpson Spence & Young - Indonesia
- Semirara Mining Corp, Philippines
- Ministry of Finance - Indonesia
- Kepco SPC Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Coal and Oil Company - UAE
- Semirara Mining and Power Corporation, Philippines
- Georgia Ports Authority, United States
- Central Java Power - Indonesia
- Larsen & Toubro Limited - India
- ASAPP Information Group - India
- Iligan Light & Power Inc, Philippines
- Tamil Nadu electricity Board
- Sojitz Corporation - Japan
- GAC Shipping (India) Pvt Ltd
- CIMB Investment Bank - Malaysia
- Carbofer General Trading SA - India
- Uttam Galva Steels Limited - India
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- PNOC Exploration Corporation - Philippines
- Meralco Power Generation, Philippines
- Kaltim Prima Coal - Indonesia
- India Bulls Power Limited - India
- Essar Steel Hazira Ltd - India
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Orica Australia Pty. Ltd.
- Australian Commodity Traders Exchange
- Riau Bara Harum - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Holcim Trading Pte Ltd - Singapore
- Tata Chemicals Ltd - India
- Electricity Generating Authority of Thailand
- McConnell Dowell - Australia
- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- Indogreen Group - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kumho Petrochemical, South Korea
- Romanian Commodities Exchange
- Edison Trading Spa - Italy
- Minerals Council of Australia
- New Zealand Coal & Carbon
- TNB Fuel Sdn Bhd - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Cement Manufacturers Association - India
- Kalimantan Lumbung Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- Kideco Jaya Agung - Indonesia
- Baramulti Group, Indonesia
- Jindal Steel & Power Ltd - India
- Barasentosa Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Metalloyd Limited - United Kingdom
- Energy Development Corp, Philippines
- Savvy Resources Ltd - HongKong
- Vizag Seaport Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- Port Waratah Coal Services - Australia
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
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