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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
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Sunday, 14 June 20
INDONESIAN COAL WAS STILL IN DEMAND; A 52,000-DWT SUPRAMAX FIXING DELIVERY CJK FOR A ROUND VOYAGE VIA INDONESIA AT $6,250 - BALTIC BRIEFING
Capesize
The Capesize market made new highs for the year this week after strong iron ore demand to the far east continued to develop in the mar ...
Friday, 12 June 20
CHINA CURBS COAL IMPORTS AFTER 5 MONTHS OF RECORD INFLOWS - SOURCES: REUTERS
China has stepped up customs checks for coal imports, leading to lengthy processing delays at ports, four sources familiar with the matter said, as ...
Friday, 12 June 20
COAL INDIA LIMITED SET FOR MARKETING DRIVE TO CREATE DEMAND - FINANCIAL EXPRESS
State-run miner Coal India (CIL), which is primarily focused on supplying coal to the power sector, is now reorienting its marketing to create dema ...
Friday, 12 June 20
MOODY'S REVISES BRENT OIL PRICE OUTLOOK TO $35/BARREL IN 2020 - TASS
Low oil prices are likely to exert the highest pressure on Iraq, Oman and Kuwait due to the limited space for the fiscal policy pursuit and higher ...
Thursday, 11 June 20
JAN-MAY, INDONESIA SHIPPED 175.15 MILLION TONS OF COAL TO ITS OVERSEAS BUYERS
Indonesia's coal production for the first 5 months of this year have reached 228 million tons. January – May 2020, Indonesia shipped US$ ...
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Showing 911 to 915 news of total 6871 |
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- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- Georgia Ports Authority, United States
- Mjunction Services Limited - India
- Posco Energy - South Korea
- Australian Commodity Traders Exchange
- Kartika Selabumi Mining - Indonesia
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- Bhatia International Limited - India
- LBH Netherlands Bv - Netherlands
- Lanco Infratech Ltd - India
- Goldman Sachs - Singapore
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- TeaM Sual Corporation - Philippines
- Bangladesh Power Developement Board
- Billiton Holdings Pty Ltd - Australia
- Australian Coal Association
- Bahari Cakrawala Sebuku - Indonesia
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Siam City Cement - Thailand
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Straits Asia Resources Limited - Singapore
- Semirara Mining Corp, Philippines
- Sojitz Corporation - Japan
- PNOC Exploration Corporation - Philippines
- Grasim Industreis Ltd - India
- Mercator Lines Limited - India
- Semirara Mining and Power Corporation, Philippines
- VISA Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- European Bulk Services B.V. - Netherlands
- Karbindo Abesyapradhi - Indoneisa
- Independent Power Producers Association of India
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Sree Jayajothi Cements Limited - India
- Salva Resources Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ind-Barath Power Infra Limited - India
- Coal and Oil Company - UAE
- SMC Global Power, Philippines
- Anglo American - United Kingdom
- Malabar Cements Ltd - India
- Renaissance Capital - South Africa
- Borneo Indobara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- Baramulti Group, Indonesia
- Kepco SPC Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Merrill Lynch Commodities Europe
- Rio Tinto Coal - Australia
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- Indogreen Group - Indonesia
- Star Paper Mills Limited - India
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- Holcim Trading Pte Ltd - Singapore
- Makarim & Taira - Indonesia
- Karaikal Port Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Mines - Canada
- SMG Consultants - Indonesia
- ICICI Bank Limited - India
- Rashtriya Ispat Nigam Limited - India
- Savvy Resources Ltd - HongKong
- Sarangani Energy Corporation, Philippines
- Latin American Coal - Colombia
- Aditya Birla Group - India
- Interocean Group of Companies - India
- Jindal Steel & Power Ltd - India
- Central Java Power - Indonesia
- Marubeni Corporation - India
- Riau Bara Harum - Indonesia
- Vizag Seaport Private Limited - India
- Agrawal Coal Company - India
- Madhucon Powers Ltd - India
- SN Aboitiz Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- San Jose City I Power Corp, Philippines
- Medco Energi Mining Internasional
- Directorate General of MIneral and Coal - Indonesia
- Jaiprakash Power Ventures ltd
- Aboitiz Power Corporation - Philippines
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- Port Waratah Coal Services - Australia
- Jorong Barutama Greston.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Vijayanagar Sugar Pvt Ltd - India
- Romanian Commodities Exchange
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- Africa Commodities Group - South Africa
- Orica Mining Services - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indian Oil Corporation Limited
- Xindia Steels Limited - India
- Videocon Industries ltd - India
- Global Green Power PLC Corporation, Philippines
- Thiess Contractors Indonesia
- Mintek Dendrill Indonesia
- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Coastal Gujarat Power Limited - India
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Ambuja Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Simpson Spence & Young - Indonesia
- The State Trading Corporation of India Ltd
- Trasteel International SA, Italy
- Mercuria Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Bhushan Steel Limited - India
- Kideco Jaya Agung - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Globalindo Alam Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Toyota Tsusho Corporation, Japan
- Bharathi Cement Corporation - India
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- Kobexindo Tractors - Indoneisa
- PTC India Limited - India
- Essar Steel Hazira Ltd - India
- Central Electricity Authority - India
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- Gujarat Electricity Regulatory Commission - India
- Minerals Council of Australia
- Gujarat Mineral Development Corp Ltd - India
- CIMB Investment Bank - Malaysia
- Miang Besar Coal Terminal - Indonesia
- Cement Manufacturers Association - India
- Meralco Power Generation, Philippines
- Singapore Mercantile Exchange
- Parliament of New Zealand
- IHS Mccloskey Coal Group - USA
- London Commodity Brokers - England
- Ministry of Finance - Indonesia
- Planning Commission, India
- Maharashtra Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Power Finance Corporation Ltd., India
- Electricity Generating Authority of Thailand
- OPG Power Generation Pvt Ltd - India
- GVK Power & Infra Limited - India
- ASAPP Information Group - India
- Bulk Trading Sa - Switzerland
- Gujarat Sidhee Cement - India
- GMR Energy Limited - India
- Standard Chartered Bank - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- Manunggal Multi Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Sakthi Sugars Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Tamil Nadu electricity Board
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Sical Logistics Limited - India
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Kapuas Tunggal Persada - Indonesia
- Global Business Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Uttam Galva Steels Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Link Ltd, New Zealand
- Economic Council, Georgia
- Kohat Cement Company Ltd. - Pakistan
- New Zealand Coal & Carbon
- Larsen & Toubro Limited - India
- Samtan Co., Ltd - South Korea
- Coalindo Energy - Indonesia
- Heidelberg Cement - Germany
- International Coal Ventures Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Bukit Baiduri Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Sindya Power Generating Company Private Ltd
- AsiaOL BioFuels Corp., Philippines
- Timah Investasi Mineral - Indoneisa
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Dalmia Cement Bharat India
- Petrochimia International Co. Ltd.- Taiwan
- Wilmar Investment Holdings
- Indian Energy Exchange, India
- Barasentosa Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Chamber of Mines of South Africa
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