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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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Thursday, 16 August 18
COAL PRODUCTION AT 37.11 PERCENT OF FULL-YEAR TARGET - THE JAKARTA POST
Indonesian coal production was recorded at 180 million tons on Wednesday, or 37.11 percent of the government’s 485 million target this year.
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Thursday, 16 August 18
OIL MARKET HIGHLIGHTS - OPEC
Crude Oil Price Movements
In July, the OPEC Reference Basket increased marginally by 5¢ m-o-m to settle at $73.27/b. Oil futures saw mixed ...
Tuesday, 14 August 18
THE CAPESIZE MARKET HAS SHOWN A TREMENDOUS COURSE DURING THE PAST 12 MONTHS - THOMAS CHASAPIS
The Capesize market has shown a tremendous course during the past 12 months, having quickly climbed out of the “hole that it had found itself ...
Monday, 13 August 18
A 50,200 DWT FIXED DELIVERY SINGAPORE TRIP VIA INDONESIA REDELIVERY CHINA IN THE LOW $10,000S - THE BALTIC BRIEFING
Capesize
Expectations of a further push in the market were largely unfulfilled last week as rates come under pressure in Asia as the North Atla ...
Friday, 10 August 18
U.S. COAL PRODUCTION TO DECLINE BY 1.8% IN 2019 BECAUSE COAL EXPORTS AND COAL CONSUMPTION ARE BOTH FORECAST TO DECREASE - EIA
EIA forecasts U.S. coal production will decline by 1.1% to 766 million short tons (MMst) in 2018 despite a 5.7% (6 MMst) increase in coal exports.
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Showing 1646 to 1650 news of total 6871 |
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- Attock Cement Pakistan Limited
- CIMB Investment Bank - Malaysia
- Kartika Selabumi Mining - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhoruka Overseas - Indonesia
- Trasteel International SA, Italy
- Bukit Baiduri Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Singapore Mercantile Exchange
- Vizag Seaport Private Limited - India
- CNBM International Corporation - China
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- OPG Power Generation Pvt Ltd - India
- Bangladesh Power Developement Board
- Sree Jayajothi Cements Limited - India
- Billiton Holdings Pty Ltd - Australia
- Karbindo Abesyapradhi - Indoneisa
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- SMC Global Power, Philippines
- London Commodity Brokers - England
- Uttam Galva Steels Limited - India
- Chamber of Mines of South Africa
- Maharashtra Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- ASAPP Information Group - India
- Meenaskhi Energy Private Limited - India
- Karaikal Port Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Renaissance Capital - South Africa
- Petron Corporation, Philippines
- Mercator Lines Limited - India
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Electricity Authority, New Zealand
- Bukit Makmur.PT - Indonesia
- Semirara Mining Corp, Philippines
- Mercuria Energy - Indonesia
- Agrawal Coal Company - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Metalloyd Limited - United Kingdom
- Independent Power Producers Association of India
- Leighton Contractors Pty Ltd - Australia
- Tata Chemicals Ltd - India
- Simpson Spence & Young - Indonesia
- Xindia Steels Limited - India
- Coal and Oil Company - UAE
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Coalindo Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Standard Chartered Bank - UAE
- The University of Queensland
- Siam City Cement - Thailand
- GMR Energy Limited - India
- PNOC Exploration Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- Baramulti Group, Indonesia
- Thiess Contractors Indonesia
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- GN Power Mariveles Coal Plant, Philippines
- Electricity Generating Authority of Thailand
- San Jose City I Power Corp, Philippines
- Latin American Coal - Colombia
- Cigading International Bulk Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- Eastern Energy - Thailand
- Lanco Infratech Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- Goldman Sachs - Singapore
- Interocean Group of Companies - India
- Pipit Mutiara Jaya. PT, Indonesia
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- European Bulk Services B.V. - Netherlands
- Asmin Koalindo Tuhup - Indonesia
- Planning Commission, India
- SN Aboitiz Power Inc, Philippines
- Georgia Ports Authority, United States
- Riau Bara Harum - Indonesia
- Toyota Tsusho Corporation, Japan
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Parry Sugars Refinery, India
- Dalmia Cement Bharat India
- McConnell Dowell - Australia
- Essar Steel Hazira Ltd - India
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Timah Investasi Mineral - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Carbofer General Trading SA - India
- Mjunction Services Limited - India
- Alfred C Toepfer International GmbH - Germany
- Power Finance Corporation Ltd., India
- Malabar Cements Ltd - India
- Mintek Dendrill Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Medco Energi Mining Internasional
- Sinarmas Energy and Mining - Indonesia
- Maheswari Brothers Coal Limited - India
- India Bulls Power Limited - India
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- Indika Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Savvy Resources Ltd - HongKong
- Straits Asia Resources Limited - Singapore
- Posco Energy - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Indian Energy Exchange, India
- Eastern Coal Council - USA
- Directorate General of MIneral and Coal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- Energy Development Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- PowerSource Philippines DevCo
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Grasim Industreis Ltd - India
- Star Paper Mills Limited - India
- Ind-Barath Power Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Directorate Of Revenue Intelligence - India
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- MS Steel International - UAE
- SMG Consultants - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Barasentosa Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Ministry of Finance - Indonesia
- Pendopo Energi Batubara - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Aditya Birla Group - India
- Australian Coal Association
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- GVK Power & Infra Limited - India
- Vedanta Resources Plc - India
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- Oldendorff Carriers - Singapore
- Sical Logistics Limited - India
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Borneo Indobara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Sojitz Corporation - Japan
- Samtan Co., Ltd - South Korea
- Gujarat Sidhee Cement - India
- Chettinad Cement Corporation Ltd - India
- Meralco Power Generation, Philippines
- Deloitte Consulting - India
- Bayan Resources Tbk. - Indonesia
- Parliament of New Zealand
- Altura Mining Limited, Indonesia
- The Treasury - Australian Government
- Sindya Power Generating Company Private Ltd
- Africa Commodities Group - South Africa
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- Banpu Public Company Limited - Thailand
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- ICICI Bank Limited - India
- PTC India Limited - India
- Jaiprakash Power Ventures ltd
- Indian Oil Corporation Limited
- IHS Mccloskey Coal Group - USA
- Siam City Cement PLC, Thailand
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- Intertek Mineral Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- New Zealand Coal & Carbon
- Madhucon Powers Ltd - India
- Orica Australia Pty. Ltd.
- Sarangani Energy Corporation, Philippines
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