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Wednesday, 08 August 18
CHINA DEMANDS PREMIUM IRON ORE, COAL; MINERS MIXED IMPACT - FITCH RATINGS
 China’s stricter environmental regulations and structural changes in its steelmaking industry boosts ongoing demand for high-quality iron ore and coking coal and widens premiums and discounts for the products’ various grades relative to benchmarks, say Fitch Ratings and CRU. The effect on individual miners’ cash flow depends on the prevailing product grade in each company’s portfolio.
We expect the wider premium and discount relationships to persist in the short term, but for the gap to tighten over time. This mutes the effect on miners’ ratings, as we rate on our mid-cycle long-term pricing assumptions and the ratings already capture the miners’ product quality.
China’s steel sector has undergone significant reform since March 2016, eliminating 260 million tonnes of capacity and increasing capacity utilisation to above 85%, from 70%-75%. Enhanced efficiency and maximisation of blast furnace output has seen record premiums for high-grade iron ore and coking coal, as premium input materials improve steelmaking productivity. Discounts for lower-grade products have widened due to lower demand.
However, there is an upper threshold for the price of high-grade iron ore that steelmakers are willing to pay, as blast furnace productivity is a function of numerous variables, including injection rates, oxygen and pellet usage as well as coke strength after reaction. These variables are more likely to be employed if the premium on higher-grade iron ore remains high, resulting in a narrowing price differential between various iron ore grades in the long term. Similarly, we expect the price difference between premium coking coal and standard coking coal to come closer to the historical 25%-30%, down from the recent 40%-65% range.
Brazil-based Vale’s (BBB+/Stable) cash flow benefits the most from the prevailing pricing conditions due to its high-grade iron ore content of over 64% across the portfolio, with a number of assets producing 65% ore. The cash flow of Australia-based Fortescue (BB+/Stable) will suffer due to wider discounts on its 56%-59% ore, while that of BHP (A+/Negative) and Rio Tinto (A/Stable) will remain largely unaffected due to an average iron content of 61%-62% produced in their mines. However, BHP is set to benefit from the record premium coking-coal price difference due to its large portfolio of premium coking-coal assets.
Source: Fitch Ratings
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Thursday, 02 August 18
INDO / CHINA COAL RV'S IS PAYING AROUND USD 11,000 TO SUPRAS BSS DELIVERY SINGAPORE - FEARNLEYS
Capesize
The counter seasonally strong market during the summer months bodes well for the remainder of the year.
According ...
Wednesday, 01 August 18
JOKOWI CANCELS PLAN TO REVOKE COAL DMO - JP
President Joko "Jokowi" Widodo on Tuesday has canceled the government’s plan to revoke the domestic market obligation (DMO) for coa ...
Wednesday, 01 August 18
SHIPPING MARKET INSIGHT - GIANNIS ANDRITSOPOULOS
The dry bulk market activity over the past four weeks has remained stable when compared to the previous months. There are concerns with regards to ...
Tuesday, 31 July 18
INDONESIA UNLIKELY TO CHANGE COAL SUPPLY, PRICING RULES UNTIL 2019 - REUTERS
Indonesia is unlikely to change its rules on domestic coal supply and pricing until 2019, Coordinating Maritime Minister Luhut Pandjaitan said on M ...
Tuesday, 31 July 18
ENERGY MINISTRY REMAINS FIRM ON DMO POLICY FOR COAL - JP
The Energy and Mineral Resources Ministry has stressed that it will not cancel its policy on the domestic market obligation (DMO) for coal, as the ...
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- Kideco Jaya Agung - Indonesia
- The Treasury - Australian Government
- McConnell Dowell - Australia
- Rashtriya Ispat Nigam Limited - India
- Krishnapatnam Port Company Ltd. - India
- European Bulk Services B.V. - Netherlands
- GMR Energy Limited - India
- Price Waterhouse Coopers - Russia
- Gujarat Sidhee Cement - India
- Lanco Infratech Ltd - India
- Meralco Power Generation, Philippines
- Latin American Coal - Colombia
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- Anglo American - United Kingdom
- Cement Manufacturers Association - India
- Straits Asia Resources Limited - Singapore
- Wood Mackenzie - Singapore
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- Bhushan Steel Limited - India
- Vedanta Resources Plc - India
- Kalimantan Lumbung Energi - Indonesia
- Sojitz Corporation - Japan
- Directorate General of MIneral and Coal - Indonesia
- Mintek Dendrill Indonesia
- Mjunction Services Limited - India
- PNOC Exploration Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Ind-Barath Power Infra Limited - India
- Siam City Cement - Thailand
- Semirara Mining Corp, Philippines
- Posco Energy - South Korea
- Eastern Coal Council - USA
- Bayan Resources Tbk. - Indonesia
- Riau Bara Harum - Indonesia
- Australian Commodity Traders Exchange
- Sree Jayajothi Cements Limited - India
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Madhucon Powers Ltd - India
- GVK Power & Infra Limited - India
- Tata Chemicals Ltd - India
- Intertek Mineral Services - Indonesia
- Interocean Group of Companies - India
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ceylon Electricity Board - Sri Lanka
- Georgia Ports Authority, United States
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Singapore Mercantile Exchange
- The State Trading Corporation of India Ltd
- AsiaOL BioFuels Corp., Philippines
- Port Waratah Coal Services - Australia
- ICICI Bank Limited - India
- Binh Thuan Hamico - Vietnam
- Salva Resources Pvt Ltd - India
- Goldman Sachs - Singapore
- Ambuja Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Jindal Steel & Power Ltd - India
- Coal and Oil Company - UAE
- Tamil Nadu electricity Board
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Energy Exchange, India
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- Ministry of Finance - Indonesia
- PTC India Limited - India
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- Africa Commodities Group - South Africa
- Planning Commission, India
- Indonesian Coal Mining Association
- Pipit Mutiara Jaya. PT, Indonesia
- Standard Chartered Bank - UAE
- VISA Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Savvy Resources Ltd - HongKong
- ASAPP Information Group - India
- Leighton Contractors Pty Ltd - Australia
- Eastern Energy - Thailand
- Dalmia Cement Bharat India
- IEA Clean Coal Centre - UK
- Siam City Cement PLC, Thailand
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- Energy Development Corp, Philippines
- New Zealand Coal & Carbon
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- Thiess Contractors Indonesia
- Mercator Lines Limited - India
- Medco Energi Mining Internasional
- Orica Mining Services - Indonesia
- Coastal Gujarat Power Limited - India
- Ministry of Mines - Canada
- OPG Power Generation Pvt Ltd - India
- Baramulti Group, Indonesia
- Maheswari Brothers Coal Limited - India
- Bhoruka Overseas - Indonesia
- Independent Power Producers Association of India
- Xindia Steels Limited - India
- Sarangani Energy Corporation, Philippines
- Bharathi Cement Corporation - India
- Jaiprakash Power Ventures ltd
- Antam Resourcindo - Indonesia
- San Jose City I Power Corp, Philippines
- Essar Steel Hazira Ltd - India
- Electricity Generating Authority of Thailand
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Wilmar Investment Holdings
- Bukit Asam (Persero) Tbk - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Global Business Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Makarim & Taira - Indonesia
- Orica Australia Pty. Ltd.
- London Commodity Brokers - England
- Romanian Commodities Exchange
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- Iligan Light & Power Inc, Philippines
- Commonwealth Bank - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kaltim Prima Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Deloitte Consulting - India
- Edison Trading Spa - Italy
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bangladesh Power Developement Board
- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- South Luzon Thermal Energy Corporation
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Kepco SPC Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- International Coal Ventures Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Heidelberg Cement - Germany
- Sakthi Sugars Limited - India
- Renaissance Capital - South Africa
- Agrawal Coal Company - India
- Marubeni Corporation - India
- CNBM International Corporation - China
- Altura Mining Limited, Indonesia
- Attock Cement Pakistan Limited
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- The University of Queensland
- Cigading International Bulk Terminal - Indonesia
- SMG Consultants - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Videocon Industries ltd - India
- Barasentosa Lestari - Indonesia
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Thai Mozambique Logistica
- SMC Global Power, Philippines
- Bhatia International Limited - India
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Minerals Council of Australia
- Bulk Trading Sa - Switzerland
- Central Java Power - Indonesia
- Holcim Trading Pte Ltd - Singapore
- LBH Netherlands Bv - Netherlands
- India Bulls Power Limited - India
- Sical Logistics Limited - India
- Simpson Spence & Young - Indonesia
- Carbofer General Trading SA - India
- Borneo Indobara - Indonesia
- Energy Link Ltd, New Zealand
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Chamber of Mines of South Africa
- Karaikal Port Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Parliament of New Zealand
- Uttam Galva Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Vijayanagar Sugar Pvt Ltd - India
- Mercuria Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- TeaM Sual Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IHS Mccloskey Coal Group - USA
- MS Steel International - UAE
- Coalindo Energy - Indonesia
- Formosa Plastics Group - Taiwan
- CIMB Investment Bank - Malaysia
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