We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 03 October 18
SHIPPING MARKET INSIGHT - KATERINA RESTIS
The bunker fuel supply and availability landscape is close to its transformation with the enforcement of the IMO’s global 0.5% fuel Sulphur c ...
Tuesday, 02 October 18
PANAMAX: A FURTHER RISE ACROSS ALL MAIN ROUTES THIS WEEK - ALLIED
Capesize
Finally an upward recovery was in sight in the spot market the past few days, after the prolonged negative pressure noted the weeks pr ...
Tuesday, 02 October 18
THE PRICE OF OIL CONTINUES ITS CLIMB AMIDST A SERIES OF CONCERNS REGARDING SUPPLY CONSTRAINTS - GEORGE LAZARIDIS
It has been a busy week for oil traders as the price of oil continues its climb amidst a series of concerns regarding supply constraints.
...
Tuesday, 02 October 18
INDONESIA GETS READY TO MEET INCREASED COAL DEMAND FROM CHINA, FREIGHT TO RESPOND - MIKAL BOE
Indonesian coal suppliers have increased their domestic coal production target by 4.5 percent from a previous 485 million tonnes to a massive 507 m ...
Monday, 01 October 18
SUPRAMAX: A 56,000 DWT FIXED DELIVERY FOR A SURABAYA TRIP WITH REDELIVERY TO WEST COAST INDIA AT $13,500 - THE BALTIC BRIEFING
Capesize
A stop-start market for the big ships with many expectations and few fulfilled. Holidays curtailed trading early in the week, but the ...
|
|
|
Showing 1601 to 1605 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Leighton Contractors Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Sakthi Sugars Limited - India
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Renaissance Capital - South Africa
- Simpson Spence & Young - Indonesia
- Tata Chemicals Ltd - India
- Mercator Lines Limited - India
- Sical Logistics Limited - India
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Gujarat Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Electricity Authority, New Zealand
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- Formosa Plastics Group - Taiwan
- Minerals Council of Australia
- GMR Energy Limited - India
- LBH Netherlands Bv - Netherlands
- Malabar Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Altura Mining Limited, Indonesia
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- PNOC Exploration Corporation - Philippines
- Ministry of Finance - Indonesia
- Commonwealth Bank - Australia
- Sojitz Corporation - Japan
- Grasim Industreis Ltd - India
- Manunggal Multi Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Price Waterhouse Coopers - Russia
- Semirara Mining Corp, Philippines
- Ministry of Transport, Egypt
- Uttam Galva Steels Limited - India
- Directorate Of Revenue Intelligence - India
- Gujarat Mineral Development Corp Ltd - India
- Independent Power Producers Association of India
- Kobexindo Tractors - Indoneisa
- Indian Oil Corporation Limited
- Planning Commission, India
- The University of Queensland
- Meralco Power Generation, Philippines
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- GN Power Mariveles Coal Plant, Philippines
- White Energy Company Limited
- Bhoruka Overseas - Indonesia
- Mjunction Services Limited - India
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Kumho Petrochemical, South Korea
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- SMC Global Power, Philippines
- GVK Power & Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- Central Electricity Authority - India
- Interocean Group of Companies - India
- Marubeni Corporation - India
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Tamil Nadu electricity Board
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- Riau Bara Harum - Indonesia
- International Coal Ventures Pvt Ltd - India
- Petron Corporation, Philippines
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- Salva Resources Pvt Ltd - India
- Aditya Birla Group - India
- Barasentosa Lestari - Indonesia
- Heidelberg Cement - Germany
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Economic Council, Georgia
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Wilmar Investment Holdings
- Georgia Ports Authority, United States
- Ministry of Mines - Canada
- Indogreen Group - Indonesia
- Globalindo Alam Lestari - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- Antam Resourcindo - Indonesia
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Gujarat Sidhee Cement - India
- IHS Mccloskey Coal Group - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Deloitte Consulting - India
- Meenaskhi Energy Private Limited - India
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Merrill Lynch Commodities Europe
- Edison Trading Spa - Italy
- Metalloyd Limited - United Kingdom
- Goldman Sachs - Singapore
- Parliament of New Zealand
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining and Power Corporation, Philippines
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- Coalindo Energy - Indonesia
- Cement Manufacturers Association - India
- Orica Australia Pty. Ltd.
- Bulk Trading Sa - Switzerland
- Sinarmas Energy and Mining - Indonesia
- Australian Commodity Traders Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IEA Clean Coal Centre - UK
- Madhucon Powers Ltd - India
- Standard Chartered Bank - UAE
- Bukit Makmur.PT - Indonesia
- Binh Thuan Hamico - Vietnam
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- Therma Luzon, Inc, Philippines
- Dalmia Cement Bharat India
- Ind-Barath Power Infra Limited - India
- London Commodity Brokers - England
- Kapuas Tunggal Persada - Indonesia
- Star Paper Mills Limited - India
- TeaM Sual Corporation - Philippines
- Latin American Coal - Colombia
- Bangladesh Power Developement Board
- Rashtriya Ispat Nigam Limited - India
- Sarangani Energy Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Rio Tinto Coal - Australia
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Anglo American - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- Posco Energy - South Korea
- Billiton Holdings Pty Ltd - Australia
- ASAPP Information Group - India
- San Jose City I Power Corp, Philippines
- Trasteel International SA, Italy
- Indika Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- PTC India Limited - India
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- Central Java Power - Indonesia
- Chamber of Mines of South Africa
- VISA Power Limited - India
- Maheswari Brothers Coal Limited - India
- Samtan Co., Ltd - South Korea
- Romanian Commodities Exchange
- Toyota Tsusho Corporation, Japan
- Orica Mining Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Thai Mozambique Logistica
- Jaiprakash Power Ventures ltd
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- India Bulls Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Wood Mackenzie - Singapore
- OPG Power Generation Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Makarim & Taira - Indonesia
- Eastern Coal Council - USA
- Coastal Gujarat Power Limited - India
- CNBM International Corporation - China
- MS Steel International - UAE
- Oldendorff Carriers - Singapore
- The State Trading Corporation of India Ltd
- Vizag Seaport Private Limited - India
- Mercuria Energy - Indonesia
- Global Business Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Baramulti Group, Indonesia
- Bhatia International Limited - India
- Aboitiz Power Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- Vedanta Resources Plc - India
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Development Corp, Philippines
|
| |
| |
|
