keeps you connected across the coal world

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events

WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Friday, 07 February 20
BIMCOThe outbreak of the novel Coronavirus has dented market sentiment and spooked markets around the globe. When China sneezes, we all catch the flu. This especially holds true for the commercial shipping markets, which remain heavily reliant upon China, both on the import and export side.
The virus spread coincides with the Chinese Lunar New Year (CNY), which marks the traditional low season for shipping markets. Thus, the virus’ knock-on effects have been hard to single out so far with next to no hard facts and figures to substantiate the matter. However, it does remain abundantly clear that an extended shutdown of China will temporarily cripple the shipping markets and hit hard on freight rates.
Every week that China remains “closed” will mark a slowdown of economic growth. Seaborne trade is closely linked to economic developments in Asia and the effects are already felt in several different ways.
Still early days
While we are probably still in the early stages of the outbreak, it is evident that this health crisis will put a drag on Chinese economic growth in the first quarter of 2020, potentially taking a toll on annual GDP growth as well.
Consumer spending, associated with CNY celebrations, has certainly taken a substantial hit. This dip in consumption cannot necessarily be made up for once the virus has been contained. The lock down of large parts of the transport system has limited the consumption of oil, and refiners have cut crudes runs across the board. Demand lost because of this is unlikely to return to boost shipping demand after the crisis is over.
Advanced Economies’ imports of manufactured goods from China remains the main driver of container shipping with seven out of the ten largest container ports located in China. Wide-spread factory shutdowns results in a slowdown of manufacturing and industrial production. The intra-Asian container shipping market, the largest in the world, will be the first trades to feel the fallout from the coronavirus if intra-Asian supply chains are disrupted. Secondly, the long-haul trades to North America and Europe will be affected.
Extended blanking of sailing (meaning cancellations, ed.) by global liner companies have been the first measure taken to ease the pressure of low demand. But if goods are not produced at all, the short-term alternatives do not exist. Medium term alternatives will rise fast though, meaning alternative producers of the goods, just as we have seen as an effect of the ongoing trade war between the US and China.
Aside from stepping up their efforts to contain the virus, the Chinese government has also rolled out fiscal stimuli to combat the economic impact from the coronavirus. If judged by the share prices on the stock exchange, it’s working. But it is not limiting the spread of the virus nor is it boosting shipping demand at present.
Quite a few countries have already started to implement measures to curb the virus spread from seafarers. On 3 February 2020, Australia introduced a 14-day limit for port calls in mainland China and Australia, de-facto quarantining seafarers onboard the ships. Singapore have since then followed suit.
The virus illustrates just how dependent the world has become upon China with many supply chains deeply embedded into the country. Anecdotal evidence suggests that South Korean car manufacturers have started to reduce output due to supply shortage of Chinese goods.
Dry bulk plummeting into negative territory
Dry bulk shipping rates have extended its rout over the past two months, driven largely by seasonality and the newly implemented IMO2020 Sulphur Regulation, which has sent fuel oil costs soaring. Chinese imports of dry bulk commodities are the main driver for the dry bulk market and with a slowdown of industrial production in the short-term, the outlook for Q1-2020 is not shaping up particularly well. Freight rates will stay low, until Chinese merchants get back into the market for the usual commodities, such as grain, coal and iron ore.
The traditional dry bulk low season is usually in Q1, and the market tends to rebound post-CNY. Yet, with the coronavirus not under control yet, the slump will inevitably be more protracted. The Capesize index fell into negative territory on 31 January 2020 and has continued its descent to reach -133 index points on 4 February 2020. If large parts of China remain under quarantine, it is likely that earnings will continue to drop across the dry bulk segments.
Shipyards – newbuildings and retrofits
China also holds a significant share of global shipyard industry. Data on newbuilt deliveries for January 2020, doesn’t seem to be impacted. But for the coming months, BIMCO expects to see an effect. This goes for retrofits of scrubbers, ballast water treatments systems etc. as well.
An oil tanker market turned on its head
Tanker shipping has certainly felt the heat in the past week, partly from the virus, but also with the lifting of US sanctions for a lot of Chinese-owned oil tankers. A lot of the oil tanker business is carried out in the spot market and freight rates have already seen substantial changes.
China is the largest crude oil importer in the world with a staggering 506 million tonnes of crude oil imported in 2019. A shutdown of China will bring with it a transitory slump of crude oil imports and accompanying refinery cuts in run rates. Such cuts have already been taking place in extent to the seasonal CNY cuts of crude runs.
The market has been turned on its head in a single month, where VLCC earnings from the Middle East Gulf to China has dropped from USD 103,274 per day on 3 January 2020 to USD 18,351 per day on 3 February 2020.
The outbreak has sent the oil prices on a rapid decline over the past month too and rumour has it that the Organization Of the Petroleum Exporting Countries (OPEC) is scheduling an emergency meeting in February to discuss production cuts in an effort to establish a floor under the dipping prices (Source: The New York Times).
How does it affect the US-China “Phase One” agreement?
In the 15 January-signed US-China “Phase One” trade agreement, China pledges to buy an additional USD 200 billion of US goods over a two-year period, of which a lot of energy and agricultural products will be seaborne. It remains questionable whether these purchases, will ever see the light of the day, and the virus outbreak could prove to be an additional hindrance to this Chinese pledge. White House economic adviser Larry Kudlow has said that the “export boom” of US commodities will be delayed as a result of the virus.
The short-term consequences remain clear
As the virus continues to spread, it remains immensely difficult to forecast the medium to long-term implications, yet the short-term consequences are clear: demand and freight rates are dropping.
With past epidemics, the markets have rebounded sharply in a matter of months, so the question is essentially about how long China will stay locked down in a quarantine?
Source: BIMCO, Peter Sand, Chief Shipping Analyst

If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Saturday, 27 February 21
China’s benchmark power coal price dropped slightly during the past week.   The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge ...

Saturday, 27 February 21
Fitch Ratings has revised some of its metals and mining price assumptions as prices for many commodities will benefit in the short term from return ...

Saturday, 27 February 21
Japanese trading house Mitsubishi Corp. decided Thursday to withdraw from the Vinh Tan 3 coal-fired power plant project in Vietnam amid growing int ...

Thursday, 25 February 21
As the first wave of the coronavirus pandemic began to bite, many observers confidently predicted that the end was nigh for global economic activit ...

Thursday, 25 February 21
Total loadings in the 12 months of 2020 were down -12.7% year-on-year to 1,130 million tonnes, according to vessels tracking data from Refinitiv, s ...

   1 2 3 4 5   
Showing 1 to 5 news of total 6239
News by Category
Popular News
Total Members : 27,309
User ID
Remember Me
By logging on you accept our TERMS OF USE.
Forgot Password
Our Members Are From ...

  • Maersk Broker
  • Mjunction Services Limited - India
  • Tamil Nadu electricity Board
  • IEA Clean Coal Centre - UK
  • Sakthi Sugars Limited - India
  • Samsung - South Korea
  • Platou - Singapore
  • Central Electricity Authority - India
  • GB Group - China
  • Argus Media - Singapore
  • Trasteel International SA, Italy
  • Malco - India
  • Indonesia Power. PT
  • Binh Thuan Hamico - Vietnam
  • KPMG - USA
  • Cosco
  • GVK Power & Infra Limited - India
  • ICICI Bank Limited - India
  • Maheswari Brothers Coal Limited - India
  • Star Paper Mills Limited - India
  • Kartika Selabumi Mining - Indonesia
  • TNPL - India
  • Energy Development Corp, Philippines
  • Riau Bara Harum - Indonesia
  • Chettinad Cement Corporation Ltd - India
  • Thriveni
  • TeaM Sual Corporation - Philippines
  • Enel Italy
  • IOL Indonesia
  • HSBC - Hong Kong
  • Deloitte Consulting - India
  • Platts
  • Indorama - Singapore
  • Maruti Cements - India
  • Kepco SPC Power Corporation, Philippines
  • MS Steel International - UAE
  • Gujarat Mineral Development Corp Ltd - India
  • Humpuss - Indonesia
  • Kapuas Tunggal Persada - Indonesia
  • Eastern Energy - Thailand
  • VISA Power Limited - India
  • Cardiff University - UK
  • Barasentosa Lestari - Indonesia
  • Peabody Energy - USA
  • Wilmar Investment Holdings
  • Dalmia Cement Bharat India
  • Rio Tinto Coal - Australia
  • Kaltim Prima Coal - Indonesia
  • Port Waratah Coal Services - Australia
  • Siam City Cement PLC, Thailand
  • Savvy Resources Ltd - HongKong
  • Gujarat Electricity Regulatory Commission - India
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Posco Energy - South Korea
  • Intertek Mineral Services - Indonesia
  • bp singapore
  • Meenaskhi Energy Private Limited - India
  • ETA - Dubai
  • Alfred C Toepfer International GmbH - Germany
  • Sinarmas Energy and Mining - Indonesia
  • Malabar Cements Ltd - India
  • Pinang Coal Indonesia
  • Karaikal Port Pvt Ltd - India
  • Bank of America
  • Credit Suisse - India
  • Indonesian Coal Mining Association
  • Reliance Power - India
  • Gresik Semen - Indonesia
  • Independent Power Producers Association of India
  • Barclays Capital - USA
  • Leighton Contractors Pty Ltd - Australia
  • Asia Cement - Taiwan
  • Indo Tambangraya Megah - Indonesia
  • World Bank
  • EIA - United States
  • KPCL - India
  • LBH Netherlands Bv - Netherlands
  • APGENCO India
  • Marubeni Corporation - India
  • Ministry of Mines - Canada
  • UBS Singapore
  • Mechel - Russia
  • Noble Europe Ltd - UK
  • Latin American Coal - Colombia
  • Iligan Light & Power Inc, Philippines
  • Maharashtra Electricity Regulatory Commission - India
  • CESC Limited - India
  • Sucofindo - Indonesia
  • Bahari Cakrawala Sebuku - Indonesia
  • Bangladesh Power Developement Board
  • Makarim & Taira - Indonesia
  • GHCL Limited - India
  • Coastal Gujarat Power Limited - India
  • Vale Mozambique
  • SGS (Thailand) Limited
  • PetroVietnam
  • Bhushan Steel Limited - India
  • IBC Asia (S) Pte Ltd
  • Sindya Power Generating Company Private Ltd
  • Thomson Reuters GRC
  • Straits Asia Resources Limited - Singapore
  • Planning Commission, India
  • PowerSource Philippines DevCo
  • Tata Chemicals Ltd - India
  • European Bulk Services B.V. - Netherlands
  • Larsen & Toubro Limited - India
  • Panama Canal Authority
  • Australian Commodity Traders Exchange
  • Arch Coal - USA
  • Bukit Asam (Persero) Tbk - Indonesia
  • Core Mineral Indonesia
  • London Commodity Brokers - England
  • IMC Shipping - Singapore
  • Kumho Petrochemical, South Korea
  • India Bulls Power Limited - India
  • Xindia Steels Limited - India
  • Orica Australia Pty. Ltd.
  • Romanian Commodities Exchange
  • Sical Logistics Limited - India
  • Russian Coal LLC
  • Semirara Mining and Power Corporation, Philippines
  • Orica Mining Services - Indonesia
  • ANZ Bank - Australia
  • Ministry of Finance - Indonesia
  • Simpson Spence & Young - Indonesia
  • KOWEPO - South Korea
  • Adani Power Ltd - India
  • Africa Commodities Group - South Africa
  • Jindal Steel & Power Ltd - India
  • Thiess Contractors Indonesia
  • Salva Resources Pvt Ltd - India
  • Coal India Limited
  • Sree Jayajothi Cements Limited - India
  • Mitsubishi Corporation
  • Banpu Public Company Limited - Thailand
  • Uttam Galva Steels Limited - India
  • Minerals Council of Australia
  • Singapore Mercantile Exchange
  • Deutsche Bank - India
  • Power Finance Corporation Ltd., India
  • TANGEDCO India
  • SN Aboitiz Power Inc, Philippines
  • CCIC - Indonesia
  • Ambuja Cements Ltd - India
  • Central Java Power - Indonesia
  • McKinsey & Co - India
  • Billiton Holdings Pty Ltd - Australia
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Jaiprakash Power Ventures ltd
  • CIMB Investment Bank - Malaysia
  • Lanco Infratech Ltd - India
  • Idemitsu - Japan
  • TNB Fuel Sdn Bhd - Malaysia
  • Kideco Jaya Agung - Indonesia
  • Global Green Power PLC Corporation, Philippines
  • Tanito Harum - Indonesia
  • SUEK AG - Indonesia
  • Antam Resourcindo - Indonesia
  • Essar Steel Hazira Ltd - India
  • Holcim Trading Pte Ltd - Singapore
  • CoalTek, United States
  • Infraline Energy - India
  • Sarangani Energy Corporation, Philippines
  • BNP Paribas - Singapore
  • Vijayanagar Sugar Pvt Ltd - India
  • Borneo Indobara - Indonesia
  • Arutmin Indonesia
  • White Energy Company Limited
  • Rudhra Energy - India
  • Bayan Resources Tbk. - Indonesia
  • Merrill Lynch Bank
  • Globalindo Alam Lestari - Indonesia
  • CNBM International Corporation - China
  • GMR Energy Limited - India
  • Wood Mackenzie - Singapore
  • Goldman Sachs - Singapore
  • ASAPP Information Group - India
  • Kohat Cement Company Ltd. - Pakistan
  • New Zealand Coal & Carbon
  • Karbindo Abesyapradhi - Indoneisa
  • Shree Cement - India
  • Vitol - Bahrain
  • Bharathi Cement Corporation - India
  • Cigading International Bulk Terminal - Indonesia
  • Grasim Industreis Ltd - India
  • Directorate Of Revenue Intelligence - India
  • Asian Development Bank
  • Indika Energy - Indonesia
  • Krishnapatnam Port Company Ltd. - India
  • UOB Asia (HK) Ltd
  • Neyveli Lignite Corporation Ltd, - India
  • Directorate General of MIneral and Coal - Indonesia
  • Clarksons - UK
  • Parliament of New Zealand
  • Australian Coal Association
  • Global Coal Blending Company Limited - Australia
  • Britmindo - Indonesia
  • The University of Queensland
  • U S Energy Resources
  • Ceylon Electricity Board - Sri Lanka
  • Petrosea - Indonesia
  • Meralco Power Generation, Philippines
  • Medco Energi Mining Internasional
  • Moodys - Singapore
  • Coalindo Energy - Indonesia
  • Thermax Limited - India
  • Videocon Industries ltd - India
  • McConnell Dowell - Australia
  • Edison Trading Spa - Italy
  • Gupta Coal India Ltd
  • Oldendorff Carriers - Singapore
  • Carbofer General Trading SA - India
  • SASOL - South Africa
  • The Treasury - Australian Government
  • Lafarge - France
  • GN Power Mariveles Coal Plant, Philippines
  • Cement Manufacturers Association - India
  • PNOC Exploration Corporation - Philippines
  • Thailand Anthracite
  • World Coal - UK
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • globalCOAL - UK
  • Indian School of Mines
  • Geoservices-GeoAssay Lab
  • Electricity Generating Authority of Thailand
  • Heidelberg Cement - Germany
  • Manunggal Multi Energi - Indonesia
  • Mitsui
  • Bhoruka Overseas - Indonesia
  • Bhatia International Limited - India
  • Aditya Birla Group - India
  • Sojitz Corporation - Japan
  • Aboitiz Power Corporation - Philippines
  • Freeport Indonesia
  • Kobe Steel Ltd - Japan
  • Miang Besar Coal Terminal - Indonesia
  • Ernst & Young Pvt. Ltd.
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Eastern Coal Council - USA
  • Ind-Barath Power Infra Limited - India
  • Permata Bank - Indonesia
  • Japan Coal Energy Center
  • Baramulti Group, Indonesia
  • MEC Coal - Indonesia
  • Pipit Mutiara Jaya. PT, Indonesia
  • NTPC Limited - India
  • DBS Bank - Singapore
  • Petron Corporation, Philippines
  • Timah Investasi Mineral - Indoneisa
  • Thai Mozambique Logistica
  • The State Trading Corporation of India Ltd
  • Renaissance Capital - South Africa
  • Glencore India Pvt. Ltd
  • Mintek Dendrill Indonesia
  • Mercuria Energy - Indonesia
  • PTC India Limited - India
  • Chamber of Mines of South Africa
  • Kobexindo Tractors - Indoneisa
  • SMG Consultants - Indonesia
  • OCBC - Singapore
  • San Jose City I Power Corp, Philippines
  • Bukit Baiduri Energy - Indonesia
  • Qatrana Cement - Jordan
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Cargill India Pvt Ltd
  • Georgia Ports Authority, United States
  • Attock Cement Pakistan Limited
  • JPMorgan - India
  • Cebu Energy, Philippines
  • Coal and Oil Company - UAE
  • Altura Mining Limited, Indonesia
  • Coal Orbis AG
  • Indogreen Group - Indonesia
  • Bulk Trading Sa - Switzerland
  • PetroVietnam Power Coal Import and Supply Company
  • RBS Sempra - UK
  • Siam City Cement - Thailand
  • KEPCO - South Korea
  • Interocean Group of Companies - India
  • Shenhua Group - China
  • GAC Shipping (India) Pvt Ltd
  • Vizag Seaport Private Limited - India
  • Bukit Makmur.PT - Indonesia
  • Rashtriya Ispat Nigam Limited - India
  • Anglo American - United Kingdom
  • Formosa Plastics Group - Taiwan
  • Commonwealth Bank - Australia
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Price Waterhouse Coopers - Russia
  • OPG Power Generation Pvt Ltd - India
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Asmin Koalindo Tuhup - Indonesia
  • ING Bank NV - Singapore
  • Inco-Indonesia
  • Therma Luzon, Inc, Philippines
  • Coaltrans Conferences
  • Kalimantan Lumbung Energi - Indonesia
  • Inspectorate - India
  • Madhucon Powers Ltd - India
  • SMC Global Power, Philippines
  • WorleyParsons
  • Maybank - Singapore
  • Bank of China, Malaysia
  • Semirara Mining Corp, Philippines
  • Surastha Cement
  • AsiaOL BioFuels Corp., Philippines
  • Tata Power - India
  • Global Business Power Corporation, Philippines
  • International Coal Ventures Pvt Ltd - India
  • Indian Oil Corporation Limited
  • Mercator Lines Limited - India
  • Economic Council, Georgia
  • Agrawal Coal Company - India
  • Ministry of Transport, Egypt
  • Petrochimia International Co. Ltd.- Taiwan
  • Ince & co LLP
  • Coeclerici Indonesia
  • The India Cements Ltd
  • JPower - Japan
  • Samtan Co., Ltd - South Korea
  • Cemex - Philippines
  • Jorong Barutama Greston.PT - Indonesia
  • TRAFIGURA, South Korea
  • Mitra SK Pvt Ltd - India
  • Parry Sugars Refinery, India
  • BRS Brokers - Singapore
  • Xstrata Coal
  • EMO - The Netherlands
  • NALCO India
  • Energy Link Ltd, New Zealand
  • Adaro Indonesia
  • Vedanta Resources Plc - India
  • PLN Batubara - Indonesia
  • Jatenergy - Australia
  • Runge Indonesia
  • Bangkok Bank PCL
  • Pendopo Energi Batubara - Indonesia
  • Total Coal South Africa
  • ACC Limited - India
  • Merrill Lynch Commodities Europe
  • South Luzon Thermal Energy Corporation
  • SRK Consulting
  • Toyota Tsusho Corporation, Japan
  • PLN - Indonesia
  • J M Baxi & Co - India
  • Gujarat Sidhee Cement - India
  • Berau Coal - Indonesia
  • IHS Mccloskey Coal Group - USA
  • GNFC Limited - India
  • Fearnleys - India
  • Standard Chartered Bank - UAE
  • Metalloyd Limited - United Kingdom