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Friday, 28 September 18
FITCH RATINGS: METALLURGICAL COAL MINERS MAY CURB COSTS AS PRICES SLIP
Strong cost inflation in the global metallurgical coal sector suggests that miners may focus on cost controls as prices decline from their current high levels over the next 18 months, say Fitch Ratings and CRU. However, mining companies rated by Fitch are well-positioned for any potential squeeze on margins, as their costs are relatively low by global standards and, in most cases, their diversified business operations limit exposure to the sector.
CRU estimates that global costs in the metallurgical coal sector increased by 18% in 2017 and continued to rise in 2018. Severe weather has played a role in Australia, causing supply-chain disruption that led to demurrage penalties and increased storage costs for unshipped coal. However, costs have also been pushed up globally by higher oil prices and attempts by mining companies to maximise production to take advantage of high prices.
Coking coal prices are currently sufficiently high that cost inflation has not undermined profitability. CRU estimates that the seaborne industry generated an average cash margin of 40% in 2016-2017, and profitability has remained very strong this year.
The metallurgical coal market is unlikely to become oversupplied in the near term, and Fitch does not expect prices to fall deep into the cost curve, as they did during 2014-2016. However, prices have already eased off from their peak of USD260/tonne in 4Q16, and are likely to decline further as supply constraints continue to ease. Fitch’s current assumptions are that hard coking coal prices will average USD185/tonne this year and USD140/tonne thereafter. These declines could put pressure on some less competitive mining companies to reduce costs to protect margins.
Among Fitch-rated companies, Teck Resources (BB+/Positive) has the largest exposure to the metallurgical coal sector, which accounted for 60% of its segment EBITDA in the 12 months to 30 June 2018. The company is among those that have increased use of contractors and rented more mining equipment to raise short-term output, which has pushed up marginal costs. Nevertheless, Teck is still in the lower half of the global cost curve (FOB port) and its costs remain lower in US dollar terms than in 2014. Teck has also taken advantage of strong margins and cash flow to reduce leverage. The main credit issue facing the company is the prospect of continued project spending and its funding resulting in weaker cash flows and higher financial leverage.
BHP Billiton (A/Stable) and Anglo American (BBB-/Stable) also have significant metallurgical coal assets, mostly located in Australia, where coal mines are generally relatively low cost by global standards. BHP and Anglo also have diversified operations, with metallurgical coal accounting for only around 16% of BHP Billiton’s revenue and 17% of Anglo’s in the financial year ending June 2017. There could be increased focus on improving efficiency in the Australian coal sector, as already signalled by some companies, but CRU and the Australian government expect production to continue to grow strongly over the next four years.
Meanwhile, mining service companies and earthmoving equipment manufacturers should continue to benefit from rising demand and a better pricing environment as miners continue with new projects and increase production. Emeco (B/Stable), which has the largest exposure to metallurgical coal among Fitch-rated companies, reported improved EBITDA margin as the commodity sector recovered. It also improved its leverage position. Further leverage improvements are likely in 2019-2021 due to equity-funded acquisitions and a tight rental equipment market in Australia.
Source: Fitch Ratings
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Monday, 08 October 18
KOMIPO INVITES BIDS FOR 520,000 TONS OF COLOMBIAN ORIGIN OF 5,700 NAR COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a tender for 520,000 MT of min. 5700 NAR coal of Colombian origin ...
Sunday, 07 October 18
SUPRAMAX: INDO-INDIA USUAL COAL RUNS WERE COVERED AT US$ 12K - FEARNLEYS
Capesize
Average daily earnings up close to 15 pct in 5 trading days, thus patience finally paying off for owners of the big ships - Chinese play ...
Sunday, 07 October 18
A CASE FOR 20/20 VISION? IMO'S LOW SULPHUR FUEL LIMIT UNDER MARPOL ANNEX VI WHICH COMES INTO FORCE ON 1ST JANUARY 2020
KNOWLEDGE TO ELEVATE
The implementation of the global 0.5% sulphur cap for bunker fuel under MARPOL Annex VI in just under 18 months’ ti ...
Friday, 05 October 18
COAL PRODUCTION REACHES 64% OF 2018 TARGET : THE JAKARTA POST
National coal production up to August has already reached 311 million tons, or 64 percent of this year's total target of 485 million tons, acco ...
Wednesday, 03 October 18
VALUE OF AUSTRALIAN COAL EXPORTS TIPPED TO DECLINE SHARPLY OVER NEXT 18 MONTHS - THE GUARDIAN
Thermal coal prices forecast to drop 25% and metallurgical coal prices 23% as value of iron ore exports also falls
The value of Aust ...
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Showing 1596 to 1600 news of total 6871 |
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- Kapuas Tunggal Persada - Indonesia
- Ministry of Transport, Egypt
- The State Trading Corporation of India Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Bhushan Steel Limited - India
- Thiess Contractors Indonesia
- Kaltim Prima Coal - Indonesia
- MS Steel International - UAE
- GMR Energy Limited - India
- Orica Australia Pty. Ltd.
- Coastal Gujarat Power Limited - India
- Price Waterhouse Coopers - Russia
- Indian Oil Corporation Limited
- Uttam Galva Steels Limited - India
- Sical Logistics Limited - India
- Rio Tinto Coal - Australia
- Star Paper Mills Limited - India
- Timah Investasi Mineral - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Meenaskhi Energy Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- Sojitz Corporation - Japan
- Riau Bara Harum - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Ministry of Finance - Indonesia
- IHS Mccloskey Coal Group - USA
- Jaiprakash Power Ventures ltd
- GVK Power & Infra Limited - India
- Meralco Power Generation, Philippines
- Goldman Sachs - Singapore
- Malabar Cements Ltd - India
- Makarim & Taira - Indonesia
- Africa Commodities Group - South Africa
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Mercuria Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bangladesh Power Developement Board
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- Port Waratah Coal Services - Australia
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- CIMB Investment Bank - Malaysia
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- Essar Steel Hazira Ltd - India
- Attock Cement Pakistan Limited
- London Commodity Brokers - England
- Standard Chartered Bank - UAE
- Indo Tambangraya Megah - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Aditya Birla Group - India
- Australian Coal Association
- Interocean Group of Companies - India
- Ambuja Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Tata Chemicals Ltd - India
- Kepco SPC Power Corporation, Philippines
- The University of Queensland
- Central Electricity Authority - India
- Central Java Power - Indonesia
- Eastern Energy - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Sakthi Sugars Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Formosa Plastics Group - Taiwan
- Planning Commission, India
- Siam City Cement PLC, Thailand
- European Bulk Services B.V. - Netherlands
- Minerals Council of Australia
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- CNBM International Corporation - China
- Thai Mozambique Logistica
- TNB Fuel Sdn Bhd - Malaysia
- Banpu Public Company Limited - Thailand
- Oldendorff Carriers - Singapore
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- GAC Shipping (India) Pvt Ltd
- Dalmia Cement Bharat India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Borneo Indobara - Indonesia
- OPG Power Generation Pvt Ltd - India
- Edison Trading Spa - Italy
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- Latin American Coal - Colombia
- Orica Mining Services - Indonesia
- Tamil Nadu electricity Board
- Krishnapatnam Port Company Ltd. - India
- Vizag Seaport Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Barasentosa Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Energy Development Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- PTC India Limited - India
- Semirara Mining and Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Posco Energy - South Korea
- Marubeni Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- Simpson Spence & Young - Indonesia
- Cement Manufacturers Association - India
- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Heidelberg Cement - Germany
- Carbofer General Trading SA - India
- Therma Luzon, Inc, Philippines
- White Energy Company Limited
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Coalindo Energy - Indonesia
- ASAPP Information Group - India
- Bhoruka Overseas - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Mintek Dendrill Indonesia
- PNOC Exploration Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Indika Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- San Jose City I Power Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jorong Barutama Greston.PT - Indonesia
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- Merrill Lynch Commodities Europe
- Larsen & Toubro Limited - India
- Toyota Tsusho Corporation, Japan
- Global Coal Blending Company Limited - Australia
- Mercator Lines Limited - India
- Aboitiz Power Corporation - Philippines
- Eastern Coal Council - USA
- Indonesian Coal Mining Association
- Bhatia International Limited - India
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Videocon Industries ltd - India
- Anglo American - United Kingdom
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- Global Green Power PLC Corporation, Philippines
- Coal and Oil Company - UAE
- Ministry of Mines - Canada
- Gujarat Sidhee Cement - India
- Baramulti Group, Indonesia
- Renaissance Capital - South Africa
- Ind-Barath Power Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- IEA Clean Coal Centre - UK
- India Bulls Power Limited - India
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- Intertek Mineral Services - Indonesia
- Grasim Industreis Ltd - India
- Sree Jayajothi Cements Limited - India
- Parliament of New Zealand
- LBH Netherlands Bv - Netherlands
- Sindya Power Generating Company Private Ltd
- Gujarat Mineral Development Corp Ltd - India
- Economic Council, Georgia
- Kartika Selabumi Mining - Indonesia
- Karaikal Port Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Georgia Ports Authority, United States
- Kobexindo Tractors - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- PowerSource Philippines DevCo
- Madhucon Powers Ltd - India
- Antam Resourcindo - Indonesia
- Xindia Steels Limited - India
- Kumho Petrochemical, South Korea
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- Binh Thuan Hamico - Vietnam
- Salva Resources Pvt Ltd - India
- Commonwealth Bank - Australia
- Iligan Light & Power Inc, Philippines
- Petron Corporation, Philippines
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