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Thursday, 23 September 21
RECORD-HIGH GAS PRICES AFFECT MANY EUROPEAN CORPORATE SECTORS - FITCH RATINGS
 Record-high natural gas prices are putting pressure on supply chains of many European corporate sectors, including non-integrated energy suppliers, fertiliser producers and consumer goods companies, Fitch Ratings says. Smaller companies in these industries are under the most pressure, while larger and more diversified issuers rated by Fitch are better positioned to mitigate the impact. Gas prices could remain high until the end of the winter heating season, given low levels of natural gas in European storage facilities. However, we expect prices to moderate once seasonal demand reduces.
High gas prices and working capital fluctuations have already caused several non-integrated UK gas suppliers (not rated by Fitch) to ask for state support in fulfilling their supply obligations to customers.
The Spanish government has introduced a levy on low-carbon power producers to support smaller suppliers.
Supply is typically a small part of larger Fitch-rated integrated utilities in Europe, which are able to pass costs on to most customer groups, or hedge. Although we expect higher gas prices to increase regulatory risks, the rated utilities’ diversification by jurisdiction and business line, including electricity production and distribution networks, cushions the impact. The unfolding situation in the European gas market may further accelerate the energy transition in the utility sector towards renewables.
Fertiliser producers have been severely affected by rising gas prices. Gas is a key input in ammonia production, which is further used in urea and DAP production. Several ammonia plants in Europe have cut their output or have temporarily shut down operations. Larger Fitch-rated fertiliser producers with a global presence are able to continue production in other regions or source ammonia from third parties, limiting the impact. Producers may also seek to increase fertiliser prices to pass costs onto consumers.
Agriculture and food producers are affected by challenges in the fertiliser sector. Agribusinesses may face shortages in fertiliser supplies and increased prices, most likely increasing their costs in the next season’s harvest. However, meat processors and carbonated drinks manufacturers, particularly in the UK, already face disruptions due to CO2 shortages, which is a by-product of ammonia manufacturing and is used in meat and fizzy drinks production. Geographically diversified food and beverages producers are better positioned to mitigate such shortages.
The record-high prices in Europe are driven by increased demand (due to the wider economic recovery and weather-related factors), competition with Asia for LNG, and a limited supply response from Gazprom, Europe’s largest supplier, providing about a third of Europe’s gas. Prices have also risen due to market fears of a gas deficit during the winter heating season due to low European storage utilisation compared to previous years.
Utilisation at Gazprom-linked storage facilities (around 10% of European capacity) is particularly low, affecting average utilisation rates in Austria, Germany and the Netherlands. Furthermore, unlike September in recent years, Gazprom has not offered any meaningful volumes for delivery this or next year via its electronic sales platform (a sales channel for short-term gas deliveries, used in addition to sales under long-term contracts). Gazprom’s total exports should increase in 2021 but this is unlikely to be sufficient to re-balance the market. Starting the new Nord Stream 2 pipeline, which is facing difficulties in obtaining necessary approvals from regulators in Europe, may affect the availability of additional gas volumes.
We have recently increased our short-term gas price assumptions. However, we expect a normalisation of demand and potential additional supplies to result in a return to mid-cycle pricing from 2023.
Source: Fitch Ratings
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Thursday, 27 January 22
2022 - A YEAR OF REBALANCING FOR METALS AND MINING - WOOD MACKENZIE
If 2021 was the year of rebound for metals and mining (M&M) commodities, then 2022 is shaping as the year of rebalance, says Wood Mackenzie, a ...
Wednesday, 26 January 22
MARKET INSIGHT - INTERMODAL
While it is logical that most of the S&P reports of the first weeks of the year are linked to very limited activity as reflected in the weekly ...
Wednesday, 26 January 22
INDONESIA: DME PROJECT IS ECONOMICALLY VIABLE AS STUDY DEMONSTRATES
The government is encouraging downstream coal processing or increase in coal added value, for example by turning coal into Dimethyl Ether (DME) to ...
Wednesday, 26 January 22
COMMODITY PRICES COULD SOAR IF THE RUSSIA-UKRAINE CRISIS ESCALATES - ING
It appears that a number of commodity markets are starting to at least price in some geopolitical risk around the growing tension between Russia an ...
Wednesday, 26 January 22
INDONESIA'S COAL BAN SENDS PRICES SOARING, OTHER EXPORTERS FAIL TO STEP UP - REUTERS
Indonesia’s short-lived ban on exporting coal has sent ructions through the seaborne market for the fuel in Asia, with the fallout likely to ...
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Showing 366 to 370 news of total 6871 |
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- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indika Energy - Indonesia
- Antam Resourcindo - Indonesia
- Bukit Makmur.PT - Indonesia
- The Treasury - Australian Government
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Larsen & Toubro Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Coal and Oil Company - UAE
- Neyveli Lignite Corporation Ltd, - India
- Semirara Mining Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Aditya Birla Group - India
- Trasteel International SA, Italy
- Minerals Council of Australia
- Indonesian Coal Mining Association
- Videocon Industries ltd - India
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- GN Power Mariveles Coal Plant, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GMR Energy Limited - India
- South Luzon Thermal Energy Corporation
- Bahari Cakrawala Sebuku - Indonesia
- Globalindo Alam Lestari - Indonesia
- Marubeni Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Borneo Indobara - Indonesia
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Leighton Contractors Pty Ltd - Australia
- Romanian Commodities Exchange
- TeaM Sual Corporation - Philippines
- Xindia Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Global Green Power PLC Corporation, Philippines
- Global Business Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Jindal Steel & Power Ltd - India
- Eastern Coal Council - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kalimantan Lumbung Energi - Indonesia
- Kapuas Tunggal Persada - Indonesia
- The University of Queensland
- Simpson Spence & Young - Indonesia
- Lanco Infratech Ltd - India
- Parliament of New Zealand
- Ambuja Cements Ltd - India
- Tamil Nadu electricity Board
- IHS Mccloskey Coal Group - USA
- Indian Energy Exchange, India
- Kartika Selabumi Mining - Indonesia
- Central Java Power - Indonesia
- Sarangani Energy Corporation, Philippines
- Thai Mozambique Logistica
- McConnell Dowell - Australia
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Bhoruka Overseas - Indonesia
- Wilmar Investment Holdings
- Central Electricity Authority - India
- Carbofer General Trading SA - India
- Vedanta Resources Plc - India
- Port Waratah Coal Services - Australia
- Petron Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Straits Asia Resources Limited - Singapore
- Ministry of Finance - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Sinarmas Energy and Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Medco Energi Mining Internasional
- Manunggal Multi Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Sojitz Corporation - Japan
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Indogreen Group - Indonesia
- Kideco Jaya Agung - Indonesia
- Energy Development Corp, Philippines
- Bangladesh Power Developement Board
- Bharathi Cement Corporation - India
- Indian Oil Corporation Limited
- Sree Jayajothi Cements Limited - India
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- VISA Power Limited - India
- Georgia Ports Authority, United States
- LBH Netherlands Bv - Netherlands
- San Jose City I Power Corp, Philippines
- London Commodity Brokers - England
- Chamber of Mines of South Africa
- Wood Mackenzie - Singapore
- Ministry of Transport, Egypt
- Gujarat Sidhee Cement - India
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- CNBM International Corporation - China
- SMC Global Power, Philippines
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Power Finance Corporation Ltd., India
- Uttam Galva Steels Limited - India
- Electricity Generating Authority of Thailand
- Barasentosa Lestari - Indonesia
- GVK Power & Infra Limited - India
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Parry Sugars Refinery, India
- Heidelberg Cement - Germany
- Ministry of Mines - Canada
- Riau Bara Harum - Indonesia
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- Holcim Trading Pte Ltd - Singapore
- Kaltim Prima Coal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Siam City Cement PLC, Thailand
- Orica Mining Services - Indonesia
- Africa Commodities Group - South Africa
- Mercuria Energy - Indonesia
- Makarim & Taira - Indonesia
- Tata Chemicals Ltd - India
- Rio Tinto Coal - Australia
- Economic Council, Georgia
- Gujarat Mineral Development Corp Ltd - India
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Dalmia Cement Bharat India
- Bulk Trading Sa - Switzerland
- Jaiprakash Power Ventures ltd
- Global Coal Blending Company Limited - Australia
- Samtan Co., Ltd - South Korea
- Commonwealth Bank - Australia
- Deloitte Consulting - India
- Formosa Plastics Group - Taiwan
- Anglo American - United Kingdom
- Bhatia International Limited - India
- Chettinad Cement Corporation Ltd - India
- Goldman Sachs - Singapore
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- Directorate General of MIneral and Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- Meralco Power Generation, Philippines
- Mercator Lines Limited - India
- Billiton Holdings Pty Ltd - Australia
- Madhucon Powers Ltd - India
- PTC India Limited - India
- Independent Power Producers Association of India
- Aboitiz Power Corporation - Philippines
- Coalindo Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Agrawal Coal Company - India
- Posco Energy - South Korea
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Siam City Cement - Thailand
- Salva Resources Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Savvy Resources Ltd - HongKong
- India Bulls Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Australian Coal Association
- Kobexindo Tractors - Indoneisa
- Merrill Lynch Commodities Europe
- Indo Tambangraya Megah - Indonesia
- Planning Commission, India
- SN Aboitiz Power Inc, Philippines
- Thiess Contractors Indonesia
- Sakthi Sugars Limited - India
- Maharashtra Electricity Regulatory Commission - India
- GAC Shipping (India) Pvt Ltd
- Altura Mining Limited, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Edison Trading Spa - Italy
- Grasim Industreis Ltd - India
- Price Waterhouse Coopers - Russia
- Mjunction Services Limited - India
- Singapore Mercantile Exchange
- MS Steel International - UAE
- New Zealand Coal & Carbon
- Banpu Public Company Limited - Thailand
- Attock Cement Pakistan Limited
- Interocean Group of Companies - India
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