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
Thursday, 10 September 20
An impressive recovery in Chinese dry bulk imports has protected the industry from the effects of falling demand in the rest of the world.
High deliveries and low contracting have left the orderbook at multi-year lows, but – with the poor outlook – the current influx of new dry bulk ships orders is not what is needed.
Demand drivers and freight rates
The biggest story in the dry bulk industry in recent months has been the strength of the recovery in major Chinese imports. These are up across the board, breaking previous records, not just for monthly imports, but also accumulated over the first seven months of the year. The Chinese recovery has been strong enough to make up for lower activity in the rest of the world, with all ship sizes above their break-even levels.
Capesize earnings rose quickly in late June, to reach USD 33,760 per day on 7 July. The high Chinese imports led to congestion at many of its ports, temporarily lowering the number of available ships. Since then, rates have fallen to a more sustainable level, averaging around USD 19,400 per day in August.
In particular, Chinese iron ore imports have been strong and are up 11.8% in the first seven months of this year compared with last – an additional 348 Capesize loads (200,000 tonnes). At 112.6m tonnes, imports in July were at a record high, bringing total imports in the first seven months of the year to 659.6m tonnes.
Higher steel production levels are, in part, behind the higher iron ore imports. Stimulus measures from the Chinese government are prompting local governments to invest in infrastructure projects, encouraging steel production. After monthly declines in March and April, Chinese crude steel production has recovered and, after seven months, is up by 2.8%.
The rise in steel production in China comes at the same time as production is falling in the rest of the world (-16.5% year-on-year), as the recovery elsewhere lags behind. This development means that, in Q2, China accounted for a record high 62% of global steel output, up from 54% in 2019. EU steel production was down 24.4% in July from last year, drops largely driven by the collapse of many manufacturing sectors, in particular Germany’s car production.
The high iron ore imports come after a few years in which Chinese steel production (+8.3% in 2019 and +6.6% in 2018) has grown faster than its iron ore imports, as it has moved towards using more electric arc furnaces and scrap steel, rather than blast furnaces. Looking at the whole picture, the higher steel production and infrastructure investment cannot fully explain the rise in iron ore imports and much of it will make its way into stockpiles.
In contrast to Chinese iron ore imports, which have grown throughout the year, coal imports did not grow in Q2. Since April, monthly coal imports have been below the corresponding month in 2019. In July, imports were 6.8m tonnes lower this year than last. The strong start to the year – boosted by cargoes arriving at the end of 2019 but only clearing customs in January and February because of local restrictions – means that, despite the fall in Q2, accumulated year-on-year growth is still up by 6.8% in the first seven months of the year.
Lower electricity demand as a result of the pandemic has caused US coal production to fall. In the week of 29 August, US coal production stood at 11.1m metric tons, 26.7% lower than the same week last year. Year to date, US coal production is down 26.9% from last year. The Energy Information Administration (EIA) expects that, over the full year, US exports of metallurgical coal will fall by 32.3%, to 37.3m tonnes, and thermal coal exports will drop by 30.2%, to 26.3m tonnes. In total, the drop in US coal exports would mean a loss of 319 Capesize loads (200,000 tonnes).
Iron ore and coal trades provide demand mainly for Capesize ships, while the smaller ships – in particular, Panamaxes and Supramaxes – have experienced higher demand because of strong agricultural exports. Brazilian soya bean exports have been at a record high this year. So far, they are up 36.3%, at 69.8m tonnes. Compared with last year, this is an increase of 248 Panamax loads (75,000 tonnes), three-quarters of which sailed across the world to China.
These strong agricultural exports have helped drive Panamax earnings up to USD 15,815 per day on 19 August, and Supramax earnings to USD 10,494 per day.
Fleet news
The dry bulk fleet has seen both deliveries and demolitions rise over the course of the pandemic, while contracting has fallen steeply. So far this year, the dry bulk fleet has grown by 2.8% and breached 900m dead weight tonnes (DWT) for the first time. Currently at 903.3m DWT, BIMCO expects full-year growth to reach 3.5%. On the other hand, the orderbook has fallen to 63.4m DWT, its lowest level since April 2004.
Deliveries have risen by 7.8m DWT from this time last year, with 33.9m DWT of new capacity arriving on the sea in the year to date. Of this, just less than half of the tonnage comes from the 70 new Capesize ships that have been delivered (15.5m DWT). Given that an average Capesize ship carries six loads a year, these new ships can carry 495 loads (200,000 tonnes) a year. The 111 new Panamax ships will be able to carry an additional 893 loads (75,000 tonnes), as these average seven loads a year.
A sharp increase in fleet growth, as a result of these deliveries, has been somewhat offset by an increase in demolitions, but the fleet continues its growth, because even an 69.4% increase in demolitions, compared with last year, only amounts to 8.7m DWT being demolished.
The pandemic and the poorer outlook have caused a 59.1% fall in contracting activity, as owners have not wanted to invest during a recession plagued by uncertainty. Only 108 new dry bulk ships have been ordered in 2020, totalling 7.5m DWT. Of these, 10 are Capesize ships (210,000 DWT) all of which have been ordered by Chinese leasing interests. The most popular ship size has proven to be Handymaxes, of which 62 have been ordered, totalling 3.5m DWT, the majority of which have a capacity of between 60,000 and 65,000 DWT.
With the start of September comes the start of the US soya bean export season, when the US replaces Brazil as the main exporter for the rest of the year. Outstanding sales of US soya beans for this marketing year – representing what has been ordered, but not yet shipped – total 24.2m tonnes, significantly up from the start of last season (9m tonnes). China accounts for 56% of total outstanding sales for this season.
While it is yet to be seen whether these soya beans will actually reach Chinese shores, even these higher sales are far below what is needed under the Phase One agreement between the two countries. China, however, has already stockpiled plenty of soya beans after record-high imports from Brazil, with total imports up 17.7% from last year (55.1m tonnes). The continued impact of African swine fever has also reduced Chinese demand. As such, BIMCO does not expect strong US soya bean exports this season, but would be pleasantly surprised should they come about as goodwill purchases ahead of, or immediately after, the November election in the US.
Tensions have also been rising between China and other countries, including Australia, China’s largest supplier of iron ore and other dry bulk imports. The tensions, ostensibly over the handling of the virus, run deeper, with Australia ready to step up to the giant, despite its dependency. So far, Chinese coal imports from Australia have seen delays, though iron ore has been untouched. In fact, iron ore exports to China have been very strong: Port Hedland exported a record 46.2m tonnes of iron ore to China in June. However, the stockpiling in China may suggest it is preparing for a further escalation of tensions.
Whatever happens between Australia and China, higher stockpiles in China of iron ore and soya beans lower the prospects for the dry bulk industry. At some point, freight rates will feel the pain of the demand that has been brought forward.
Given the importance of China to the dry bulk market, the recovery in industrial production and massive imports there have, so far, been enough to support the market. However, the rest of the world needs to join the recovery wave if this is to be sustained, to stimulate demand in other areas of the world, as well as to ensure that China’s recovery doesn’t falter because of the lower international activity. With COVID-19 cases still rising, a global recovery seems some way off.
Even with higher demolitions, the fleet will grow by 3.5% this year while, on the other side, demand falls, and faces a slow return to pre-pandemic levels. The dry bulk market – already struggling before the pandemic – is now looking ahead to even more challenging times, and the industry most certainly does not need to see the currently low orderbook grow.
Source: Peter Sand, BIMCO

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

Recent News

Friday, 13 November 20
China’s benchmark power coal price rose slightly during the past week.   The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...

Monday, 09 November 20
The Indonesian government may rein in its push to increase use of biodiesel as it now comes at higher cost following a fall in crude oil prices and ...

Monday, 09 November 20
The Asian seaborne thermal coal pool is drying out   Resource Generation Ltd’s proposed but long delayed Boikarabelo coal mine i ...

Friday, 06 November 20
China’s benchmark power coal price rose slightly during the past week.   The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of ...

Thursday, 05 November 20
THE INDONESIA COAL PRICE REFERENCE RISES FOR SECOND CONSECUTIVE MONTH The Indonesia Coal Price Reference rose for a 2nd month by 9.24% month on month. The Indonesia Coal Price Reference for the month of ...

   2 3 4 5 6   
Showing 16 to 20 news of total 6147
News by Category
Popular News
Total Members : 27,167
User ID
Remember Me
By logging on you accept our TERMS OF USE.
Forgot Password
Our Members Are From ...

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