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Wednesday, 08 September 21
FITCH RATINGS RAISES THERMAL COAL PRICE ASSUMPTIONS ON TIGHT SUPPLY
 Fitch Ratings has increased all its Qinhuangdao 5,500kcal/kg price assumptions and short- and medium-term Newcastle 6,000kcal/kg price assumptions due to thermal coal supply constraints in China.
Chinese regulations further tightening the mine safety requirements implemented earlier this year have reduced thermal coal production in the country despite strong demand driven by the economic recovery. Thermal power generation increased in China in January to July by 13.2% yoy, while non-power coal consumption increased by 7.7% yoy, causing rapid increases in coal prices. Coal inventories have been declining, even though import volumes increased in June and July.
The government has launched some mitigating actions, including re-opening open-pit mines capable of producing 67 million tonnes of coal per year, approving new production capacities and requesting mines increase production volumes. These measures, and seasonally weaker demand in September and October, should help moderate prices from the current high levels; however, we expect average domestic prices for 2021 to be higher than in our previous price deck.
Our increased price assumptions for the Chinese benchmark in 2022 and thereafter reflect structurally tighter supply, lower incentives to invest in new coal mines and an emerging trend of local governments and mining companies closing older coal mines in order to meet carbon-reduction targets. Furthermore, the central government has demonstrated its tolerance of high coal prices, while local governments in coal-producing regions are motivated to keep supply relatively tight.
The stronger domestic prices in China have also affected seaborne prices, despite China’s ban on coal imports from Australia. Trade flows have adjusted as a result, with China now importing more coal from Russia, Indonesia and other countries, with Australia now exporting more to India and Korea. We therefore have increased our 2021–2023 Newcastle 6,000kcal/kg assumptions. We have kept longer-term price assumptions for the Australian benchmark unchanged. We anticipate that pressures to reduce coal power generation in many key markets consuming Australian coal will eventually lessen coal demand and help normalise the seaborne prices.
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Wednesday, 28 April 21
MARKET INSIGHT - INTERMODAL
Despite the current challenges as a result of the global pandemic, 2021 is turning out to be a landmark year for the iron ore market with spot pric ...
Monday, 26 April 21
CHINA TO FURTHER CUT COAL USE IN 2021 - XINHUA
China aims to reduce the share of coal in its energy mix to less than 56% this year, according to a guideline released by the National Energy Admin ...
Wednesday, 21 April 21
COAL FINANCING COSTS HAVE SURGED IN PAST 10 YEARS - UNIVERSITY OF OXFORD - THE GUARDIAN
Coal financing costs have surged over the last decade as investors demand returns four times as high as the payoff required from renewable energy p ...
Tuesday, 20 April 21
US DOLLAR LIBOR TRANSITION IN ASSET FINANCE - WHERE ARE WE NOW? - WATSON FARLEY & WILLIAMS
Since our last article, there has been a raft of regulatory and market body announcements relating to the transition away from LIBOR and the follow ...
Sunday, 18 April 21
INDONESIA LIKELY TO WITNESS 119 OIL AND GAS PROJECTS STARTS ACROSS VALUE CHAIN BY 2025, SAYS GLOBALDATA
Indonesia is expected to witness 119 oil and gas projects commencing their operations across value chain during 2021-2025, accounting for 6% of the ...
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- GVK Power & Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mercuria Energy - Indonesia
- Ministry of Finance - Indonesia
- Salva Resources Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Coastal Gujarat Power Limited - India
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- South Luzon Thermal Energy Corporation
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Eastern Coal Council - USA
- Asmin Koalindo Tuhup - Indonesia
- Banpu Public Company Limited - Thailand
- Siam City Cement - Thailand
- Jaiprakash Power Ventures ltd
- SMC Global Power, Philippines
- ICICI Bank Limited - India
- Altura Mining Limited, Indonesia
- Madhucon Powers Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Indonesian Coal Mining Association
- GMR Energy Limited - India
- SMG Consultants - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Kideco Jaya Agung - Indonesia
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- VISA Power Limited - India
- Metalloyd Limited - United Kingdom
- Minerals Council of Australia
- Simpson Spence & Young - Indonesia
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Global Green Power PLC Corporation, Philippines
- Posco Energy - South Korea
- Sojitz Corporation - Japan
- The Treasury - Australian Government
- Sarangani Energy Corporation, Philippines
- The University of Queensland
- Orica Mining Services - Indonesia
- Meralco Power Generation, Philippines
- Lanco Infratech Ltd - India
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Vedanta Resources Plc - India
- Rashtriya Ispat Nigam Limited - India
- Power Finance Corporation Ltd., India
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Economic Council, Georgia
- Coalindo Energy - Indonesia
- Planning Commission, India
- Intertek Mineral Services - Indonesia
- Medco Energi Mining Internasional
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Bhoruka Overseas - Indonesia
- Antam Resourcindo - Indonesia
- Bukit Makmur.PT - Indonesia
- Tata Chemicals Ltd - India
- Central Java Power - Indonesia
- Therma Luzon, Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Renaissance Capital - South Africa
- Directorate General of MIneral and Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Bhatia International Limited - India
- LBH Netherlands Bv - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chamber of Mines of South Africa
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Jindal Steel & Power Ltd - India
- Formosa Plastics Group - Taiwan
- Commonwealth Bank - Australia
- The State Trading Corporation of India Ltd
- Krishnapatnam Port Company Ltd. - India
- Gujarat Mineral Development Corp Ltd - India
- Deloitte Consulting - India
- Larsen & Toubro Limited - India
- Cement Manufacturers Association - India
- Ministry of Transport, Egypt
- Carbofer General Trading SA - India
- New Zealand Coal & Carbon
- Eastern Energy - Thailand
- Singapore Mercantile Exchange
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- TeaM Sual Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- McConnell Dowell - Australia
- Bangladesh Power Developement Board
- Uttam Galva Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Makarim & Taira - Indonesia
- Petron Corporation, Philippines
- Ambuja Cements Ltd - India
- Indogreen Group - Indonesia
- Electricity Generating Authority of Thailand
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Standard Chartered Bank - UAE
- Samtan Co., Ltd - South Korea
- ASAPP Information Group - India
- Coal and Oil Company - UAE
- Maheswari Brothers Coal Limited - India
- Billiton Holdings Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- Bulk Trading Sa - Switzerland
- Leighton Contractors Pty Ltd - Australia
- London Commodity Brokers - England
- Orica Australia Pty. Ltd.
- Thai Mozambique Logistica
- Semirara Mining and Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Kumho Petrochemical, South Korea
- Karbindo Abesyapradhi - Indoneisa
- Baramulti Group, Indonesia
- Indian Energy Exchange, India
- PTC India Limited - India
- Chettinad Cement Corporation Ltd - India
- European Bulk Services B.V. - Netherlands
- Toyota Tsusho Corporation, Japan
- Kartika Selabumi Mining - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- Pipit Mutiara Jaya. PT, Indonesia
- Indika Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aboitiz Power Corporation - Philippines
- Merrill Lynch Commodities Europe
- Essar Steel Hazira Ltd - India
- Mjunction Services Limited - India
- Attock Cement Pakistan Limited
- Kepco SPC Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- Thiess Contractors Indonesia
- Kapuas Tunggal Persada - Indonesia
- Energy Development Corp, Philippines
- Gujarat Sidhee Cement - India
- Dalmia Cement Bharat India
- Australian Coal Association
- Karaikal Port Pvt Ltd - India
- Africa Commodities Group - South Africa
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- Borneo Indobara - Indonesia
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- White Energy Company Limited
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- India Bulls Power Limited - India
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- Meenaskhi Energy Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- Sakthi Sugars Limited - India
- Interocean Group of Companies - India
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- Malabar Cements Ltd - India
- Goldman Sachs - Singapore
- PNOC Exploration Corporation - Philippines
- Bharathi Cement Corporation - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kohat Cement Company Ltd. - Pakistan
- Oldendorff Carriers - Singapore
- Edison Trading Spa - Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sical Logistics Limited - India
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Indian Oil Corporation Limited
- Aditya Birla Group - India
- Miang Besar Coal Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Manunggal Multi Energi - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Port Waratah Coal Services - Australia
- Global Business Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Parry Sugars Refinery, India
- PowerSource Philippines DevCo
- OPG Power Generation Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Mintek Dendrill Indonesia
- Independent Power Producers Association of India
- Riau Bara Harum - Indonesia
- AsiaOL BioFuels Corp., Philippines
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