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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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Saturday, 06 March 21
AUSTRALIAN COAL: SOME WEAKNESS COULD MATERIALIZE AFTER THE WINTER - ING
Newcastle coal prices remain well supported for now, however as we move out of the winter months we would expect prices to come under pressure. Mea ...


Saturday, 06 March 21
ASIA SEABORNE COAL PRICES START TO RETREAT, CHINA-AUSTRALIA DISPUTE LINGERS - REUTERS
There are signs that the price and demand surge for coal during the recent colder-than-expected winter across North Asia is starting to ease, even ...


Thursday, 04 March 21
HEAD OF JBIC SAYS THE JAPANESE BANK WILL NOT FUND NEW COAL PLANT DEVELOPMENT - NHK NEWS
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Wednesday, 03 March 21
MARKET INSIGHT - INTERMODAL
Following the recent rally to multi year highs of metal-based commodities, amid an unprecedented global economic stimulus, discussions of an emergi ...


Saturday, 27 February 21
CHINA'S BENCHMARK POWER COAL PRICE EDGES DOWN - XINHUA
China’s benchmark power coal price dropped slightly during the past week.   The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge ...


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