We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 16 June 20
HIGHER IRON ORE PRICES OFFSET CORONAVIRUS-DRIVEN PRODUCTION RISK - FITCH RATINGS
 Lower iron ore production in Brazil, resulting from rising coronavirus infections, should only marginally affect the cash flow of Vale and other global mining companies due to higher prices, says Fitch Ratings. More than 10% of Vale’s production was affected last week when a local court suspended operations at its Itabira Complex due to employees testing positive for the virus.
Iron ore prices declined earlier this year due to demand concerns but later rebounded and are being supported by supply constraints caused by Vale’s 2019 dam accident and weather-related production disruptions. Prices increased to above USD100/dry metric ton (dmt) due to the news regarding the suspension.
Vale maintained its 2020 production guidance at 310 metric tons (mt) to 330mt with production expected to resume once all employees are tested and the company ensures no infected workers are working at the facilities. CRU Group believes it will be increasingly difficult for Vale to meet volume guidance considering the suspension, weak production in the Northern System and the effect heavy rainfall had on output at the start of 2020. The potential for additional infections increases employee absenteeism and production risk, as the number of people available to work in mines and processing plants falls, and other municipalities could take similar actions to stem the spread of the virus.
Material Environmental, Social and Governance (ESG) shortcomings, particularly in the areas of executing strategy and maintaining the well-being of employees, constrain Vale’s ‘BBB-’ credit ratings with a Stable Outlook. However, Vale is a low-cost producer with a leading market position, abundant reserves, and high-grade iron that commands a market premium, which reduces credit implications.
Fitch projects Vale will generate more than USD14 billion of EBITDA in 2020, assuming iron ore prices average USD75/dmt. FCF should be about USD5.0 billion, assuming capex is about USD4.7 billion and dividends are USD3.0 billion. Vale’s 2020 net debt/EBITDA is projected to be around 0.5x. These forecasts compare with USD17 billion of EBITDA, USD7 billion of FCF and net debt/EBITDA of 0.3x for the LTM ended March 31. Forecasts could prove conservative, given the rise in iron ore prices.
Similar dynamics apply to Anglo American’s operations at Minas-Rio. Fitch used for its rating case the bottom of existing production guidance of 22 million tonnes – 24 million tonnes and a price assumption of USD75/tonne in 2020 for the 62% Fe benchmark cost and freight (CFR) China price. The company has scheduled a one month production stoppage for inspection of its slurry pipeline for second-half 2020. If there were any pandemic-related disruptions in the coming months it might be possible to use the slot to re-schedule the maintenance work. Overall, based on production figures to date, upside from actual prices realized and material Brazilian real depreciation, there is unlikely to be any cash flow downside for the earnings outlook from a temporary disruption, if it occurs at Minas-Rio, to the existing rating case.
CRU’s forecast for benchmark 62% Fe fines CFR China is USD80/dmt as of May 2020. Iron ore demand in China remains robust as rising steel prices and margins for hot rolled coil producers above 10% encourage steel production. CRU expects strong steel production ahead of the wet season in southern China, which typically slows demand from the construction sector. Steel mills in China continue to operate with exceptionally low inventories and recent data shows mill inventories are declining further while port stocks remain steady at 108mt.
Source: Fitch Ratings
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 17 June 20
MARKET INSIGHT - INTERMODAL
After experiencing record earnings during the first half of the year, the focus of headlines concerning the tanker market has shifted from the deve ...
Wednesday, 17 June 20
KOREA SOUTHERN POWER CO INVITED 80000 MT OF LOW CALORIFIC VALUE COAL FOR AUGUST 1H, 2020 LOADING
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for 80,000 Metric Tons (MT) Min 4,200 kcal/kg - Max. ...
Tuesday, 16 June 20
A GLOBAL ECONOMIC SLUMP: WHAT WILL IT MEAN FOR METALS AND MINING? - WOOD MACKENZIE
Back before coronavirus knocked “normal” out cold, the key issues for miners were sub-investment prices, rising requirements for ESG an ...
Tuesday, 16 June 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.58 PCT - XINHUA
China Taiyuan coal transaction price index stood at 124.43 points Monday, up 0.58 percent week on week.
The index, released by China ...
Tuesday, 16 June 20
SHALE SHOCKED - WOOD MACKENZIE
Capturing shut-ins in real time
Oil markets are searching for balance as the world reflects on the impact of the COVID-19 pandemic. ...
|
|
|
Showing 906 to 910 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Chettinad Cement Corporation Ltd - India
- Bulk Trading Sa - Switzerland
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- Savvy Resources Ltd - HongKong
- Straits Asia Resources Limited - Singapore
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhoruka Overseas - Indonesia
- Ind-Barath Power Infra Limited - India
- Agrawal Coal Company - India
- Pipit Mutiara Jaya. PT, Indonesia
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
- Wilmar Investment Holdings
- Iligan Light & Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- Toyota Tsusho Corporation, Japan
- Timah Investasi Mineral - Indoneisa
- CNBM International Corporation - China
- Kapuas Tunggal Persada - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Mineral Development Corp Ltd - India
- Grasim Industreis Ltd - India
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Kumho Petrochemical, South Korea
- Latin American Coal - Colombia
- Australian Commodity Traders Exchange
- LBH Netherlands Bv - Netherlands
- Goldman Sachs - Singapore
- Globalindo Alam Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Price Waterhouse Coopers - Russia
- Karaikal Port Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Holcim Trading Pte Ltd - Singapore
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- Aditya Birla Group - India
- Indo Tambangraya Megah - Indonesia
- Malabar Cements Ltd - India
- GMR Energy Limited - India
- PTC India Limited - India
- Alfred C Toepfer International GmbH - Germany
- International Coal Ventures Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kartika Selabumi Mining - Indonesia
- Electricity Authority, New Zealand
- The State Trading Corporation of India Ltd
- Star Paper Mills Limited - India
- Energy Development Corp, Philippines
- Orica Australia Pty. Ltd.
- IHS Mccloskey Coal Group - USA
- SMC Global Power, Philippines
- Thai Mozambique Logistica
- Asmin Koalindo Tuhup - Indonesia
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Georgia Ports Authority, United States
- Dalmia Cement Bharat India
- Mintek Dendrill Indonesia
- Kideco Jaya Agung - Indonesia
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Indika Energy - Indonesia
- Riau Bara Harum - Indonesia
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Bahari Cakrawala Sebuku - Indonesia
- Larsen & Toubro Limited - India
- Trasteel International SA, Italy
- Mercuria Energy - Indonesia
- Banpu Public Company Limited - Thailand
- IEA Clean Coal Centre - UK
- Coastal Gujarat Power Limited - India
- Xindia Steels Limited - India
- India Bulls Power Limited - India
- Standard Chartered Bank - UAE
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- Carbofer General Trading SA - India
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Bangladesh Power Developement Board
- Pendopo Energi Batubara - Indonesia
- Sakthi Sugars Limited - India
- Sical Logistics Limited - India
- Kaltim Prima Coal - Indonesia
- Jaiprakash Power Ventures ltd
- San Jose City I Power Corp, Philippines
- Uttam Galva Steels Limited - India
- Indian Oil Corporation Limited
- Indonesian Coal Mining Association
- Vijayanagar Sugar Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- TeaM Sual Corporation - Philippines
- Samtan Co., Ltd - South Korea
- Minerals Council of Australia
- Interocean Group of Companies - India
- Mjunction Services Limited - India
- Bhatia International Limited - India
- Parliament of New Zealand
- Bukit Baiduri Energy - Indonesia
- Bharathi Cement Corporation - India
- Africa Commodities Group - South Africa
- Kepco SPC Power Corporation, Philippines
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- Kobexindo Tractors - Indoneisa
- Ministry of Finance - Indonesia
- Binh Thuan Hamico - Vietnam
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Medco Energi Mining Internasional
- Australian Coal Association
- Manunggal Multi Energi - Indonesia
- Sojitz Corporation - Japan
- Bhushan Steel Limited - India
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- Planning Commission, India
- Coal and Oil Company - UAE
- Leighton Contractors Pty Ltd - Australia
- Cement Manufacturers Association - India
- White Energy Company Limited
- Baramulti Group, Indonesia
- Madhucon Powers Ltd - India
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Jindal Steel & Power Ltd - India
- SN Aboitiz Power Inc, Philippines
- VISA Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Tata Chemicals Ltd - India
- MS Steel International - UAE
- Commonwealth Bank - Australia
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- Economic Council, Georgia
- Central Electricity Authority - India
- Rio Tinto Coal - Australia
- Coalindo Energy - Indonesia
- Chamber of Mines of South Africa
- The University of Queensland
- ICICI Bank Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thiess Contractors Indonesia
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Attock Cement Pakistan Limited
- London Commodity Brokers - England
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Barasentosa Lestari - Indonesia
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- Wood Mackenzie - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Mercator Lines Limited - India
- Posco Energy - South Korea
- Eastern Energy - Thailand
- Meralco Power Generation, Philippines
- Formosa Plastics Group - Taiwan
- Singapore Mercantile Exchange
- SMG Consultants - Indonesia
- Antam Resourcindo - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Transport, Egypt
- Altura Mining Limited, Indonesia
- Petron Corporation, Philippines
- Central Java Power - Indonesia
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- The Treasury - Australian Government
- Salva Resources Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Lanco Infratech Ltd - India
- Directorate Of Revenue Intelligence - India
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Global Coal Blending Company Limited - Australia
- Global Green Power PLC Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Intertek Mineral Services - Indonesia
- Renaissance Capital - South Africa
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement - Thailand
|
| |
| |
|
