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Tuesday, 06 July 21
INDONESIAN 4,200 INDEX HAS ALSO INCREASED TO OVER USD50 PER TONNE SINCE MAY THIS YEAR REFLECTING STRONG CHINESE IMPORT DEMAND - FITCH RATINGS
Fitch RatingsPrice Surge Since March
APAC thermal coal has resumed its price surge since March this year. The  benchmark Newcastle 6,000kcal/kg grade coal increased by 52% in  the past four months to USD136/tonne by end-June, Fitch Ratings said in its latest APAC Thermal Coal Watch report.
 
The high prices are largely supported by tight supply in China against the backdrop of a global commodities bull market, while 1Q21 import volume from major Asian importing countries remained slightly lower than 2019 and 2020 levels. 
 
Supply Shortage in China
APAC Thermal Coal Watch report noted that, China’s benchmark Qinhuangdao 5,500kcal/kg coal price made a drastic return to nearly CNY1,000/tonne by end-June, after a correction to CNY566/tonne at  end February. The 6M21 average price reached CNY792/tonne. China’s power generation in 5M21 rose by14.9% yoy, which translated to a solid average annual growth  of 6.9% from 5M19. Meanwhile,  supply remains subdued due to limited new capacity in 5M21 and safety and environmental speculations from local governments. 
 
Inventories at power plants and coal mines are at relatively low levels, further exposing prices to strong volatility. 
 
More Production Expected in 2H21
APAC Thermal Coal Watch report also noted, China’s National Development and Reform Commission (NDRC) expects coal prices to enter a downward trend from July, according to a recent interview of a NDRC  official by state-owned Xinhua News Agency. The NDRC official revealed that more supply was arranged, including resumed production from previously suspended capacity and larger approved quota for some operational mines. China’s coal production edged up by 1.3% in May from April but was still 7.3% below the high level in December last year. 
 
Indonesian Coal Price Improves
According to APAC Thermal Coal Watch report of Fitch Ratings, the Indonesian 4,200kcal index has also increased to over USD50/tonne since May this year reflecting strong Chinese import demand and the soft cap on Australian coal. However, Fitch expects prices  to taper off througout  the rest of the year following improving  Chinese  production  and  easing demand. The1Q21 performance has improved significantly for Indonesian miners and mining contractors.


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Friday, 09 July 21
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Thursday, 08 July 21
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Tuesday, 06 July 21
INDONESIA COAL PRICE REFERENCE RISES TO 112 MONTHS HIGH IN JULY 2021; 121.15% HIGHER COMPARED TO THAT IN JULY 2020 PRICE
COALspot.com: The Indonesia coal price reference for July 2021 fixed at US$ 115.35 per ton FOB vessel.  The Indonesia coal price referenc ...


Tuesday, 06 July 21
INDONESIAN COAL EXPORTS FELL BY 37% YOY IN 1Q21 DUE TO ADVERSE WEATHER CONDITIONS - FITCH RATINGS
Chinese coal imports declined by 25% yoy in 5M21as a result of both restrictions on Australian coal and the high base in 2020. Import volume in Jan ...


Thursday, 01 July 21
WHY INDIA’S SOLAR POWER TARIFFS ARE CLIMBING AFTER HITTING RECORD LOWS LAST YEAR - IEEFA
What’s behind the recent increase?   Solar tariffs are deflationary. Prices have fallen by 75% in seven years in India, and in 2 ...


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