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.
|
|
Thursday, 09 August 18
RIO TINTO COMPLETES SALE OF REMAINING COAL ASSETS
Rio Tinto has completed the sale of its remaining coal assets in Queensland, Australia, for $3.95 billion.
According to a noted post ...
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 ...
Wednesday, 08 August 18
SHIPPING MARKET INSIGHT - CHRISTOPHER WHITTY
Singapore's shipyard business has evolved over the decades, from shipbuilding and repairs to rig building. It's now evolving again, to cate ...
Friday, 03 August 18
PHEW! ASIA, EUROPE HEATWAVE PUSHES AUSTRALIA COAL PRICES TO 6-YEAR HIGH: REUTERS
Australian thermal coal prices have hit fresh six-year highs as a heatwave across the northern hemisphere has triggered a spike in demand for coal- ...
Friday, 03 August 18
HBA HAS RISEN 28.41 PER CENT IN A YEAR TO BE AT THEIR HIGHEST LEVELS SINCE JANUARY 2012
COALspot.com: The benchmark price of Indonesian thermal coal has risen 28.41 per cent in a year to be at their highest levels since January 2012.&n ...
|
|
|
Showing 1651 to 1655 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Edison Trading Spa - Italy
- Ambuja Cements Ltd - India
- Globalindo Alam Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- Minerals Council of Australia
- Indika Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Mercator Lines Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Directorate Of Revenue Intelligence - India
- Billiton Holdings Pty Ltd - Australia
- SMC Global Power, Philippines
- VISA Power Limited - India
- Orica Mining Services - Indonesia
- Madhucon Powers Ltd - India
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Indogreen Group - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ICICI Bank Limited - India
- Savvy Resources Ltd - HongKong
- Sree Jayajothi Cements Limited - India
- South Luzon Thermal Energy Corporation
- Jaiprakash Power Ventures ltd
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- The State Trading Corporation of India Ltd
- Kohat Cement Company Ltd. - Pakistan
- Banpu Public Company Limited - Thailand
- Coal and Oil Company - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- White Energy Company Limited
- Bhoruka Overseas - Indonesia
- Planning Commission, India
- Australian Coal Association
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Georgia Ports Authority, United States
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- Bukit Baiduri Energy - Indonesia
- Sojitz Corporation - Japan
- Vedanta Resources Plc - India
- MS Steel International - UAE
- Mercuria Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- Bhushan Steel Limited - India
- Vizag Seaport Private Limited - India
- Parliament of New Zealand
- Renaissance Capital - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Cement Manufacturers Association - India
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Anglo American - United Kingdom
- Riau Bara Harum - Indonesia
- Latin American Coal - Colombia
- Independent Power Producers Association of India
- Makarim & Taira - Indonesia
- GVK Power & Infra Limited - India
- Central Java Power - Indonesia
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Chamber of Mines of South Africa
- Coalindo Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- International Coal Ventures Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Bulk Trading Sa - Switzerland
- Kideco Jaya Agung - Indonesia
- Kumho Petrochemical, South Korea
- Medco Energi Mining Internasional
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- McConnell Dowell - Australia
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Tata Chemicals Ltd - India
- Attock Cement Pakistan Limited
- Alfred C Toepfer International GmbH - Germany
- Deloitte Consulting - India
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- Port Waratah Coal Services - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- IEA Clean Coal Centre - UK
- IHS Mccloskey Coal Group - USA
- San Jose City I Power Corp, Philippines
- Gujarat Sidhee Cement - India
- Heidelberg Cement - Germany
- Indian Oil Corporation Limited
- Binh Thuan Hamico - Vietnam
- Central Electricity Authority - India
- Uttam Galva Steels Limited - India
- Mjunction Services Limited - India
- Eastern Energy - Thailand
- Borneo Indobara - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Simpson Spence & Young - Indonesia
- Indonesian Coal Mining Association
- Bharathi Cement Corporation - India
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Dalmia Cement Bharat India
- Global Coal Blending Company Limited - Australia
- Sinarmas Energy and Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bhatia International Limited - India
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Price Waterhouse Coopers - Russia
- Global Business Power Corporation, Philippines
- Xindia Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Maharashtra Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Therma Luzon, Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- Pipit Mutiara Jaya. PT, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- TeaM Sual Corporation - Philippines
- Rio Tinto Coal - Australia
- Orica Australia Pty. Ltd.
- Antam Resourcindo - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- Maheswari Brothers Coal Limited - India
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- GAC Shipping (India) Pvt Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Marubeni Corporation - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- India Bulls Power Limited - India
- CNBM International Corporation - China
- Australian Commodity Traders Exchange
- Parry Sugars Refinery, India
- Trasteel International SA, Italy
- Oldendorff Carriers - Singapore
- Intertek Mineral Services - Indonesia
- Tamil Nadu electricity Board
- Thai Mozambique Logistica
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Aditya Birla Group - India
- SMG Consultants - Indonesia
- Sarangani Energy Corporation, Philippines
- Eastern Coal Council - USA
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- OPG Power Generation Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Videocon Industries ltd - India
- New Zealand Coal & Carbon
- Cigading International Bulk Terminal - Indonesia
- PowerSource Philippines DevCo
- Essar Steel Hazira Ltd - India
- Economic Council, Georgia
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Star Paper Mills Limited - India
- Africa Commodities Group - South Africa
- Power Finance Corporation Ltd., India
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- Aboitiz Power Corporation - Philippines
- Sakthi Sugars Limited - India
- Baramulti Group, Indonesia
- The University of Queensland
- Interocean Group of Companies - India
- CIMB Investment Bank - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Commonwealth Bank - Australia
- Standard Chartered Bank - UAE
- Miang Besar Coal Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Thiess Contractors Indonesia
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- PetroVietnam Power Coal Import and Supply Company
- Directorate General of MIneral and Coal - Indonesia
- Posco Energy - South Korea
- Meralco Power Generation, Philippines
- GMR Energy Limited - India
- Ministry of Transport, Egypt
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Metalloyd Limited - United Kingdom
- Siam City Cement PLC, Thailand
- Ministry of Finance - Indonesia
- Goldman Sachs - Singapore
- ASAPP Information Group - India
- Carbofer General Trading SA - India
|
| |
| |
|
