We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Saturday, 16 October 21
DESPITE HIGHER COAL PRICES, U.S. COAL RECOVERY LOOKS WEAK BY MOST MEASURES - IEEFA
 U.S. coal sector is locked into a long-term sectoral decline
Coal prices have surged to the highest level in years in the U.S., and have soared in international markets. These high prices should significantly boost revenues and profits at coal mining companies—a remarkable turnaround from just a year ago, when the world’s pandemic-induced economic swoon sent export prices and demand tumbling.
Yet by most measures—including coal production, consumption for electric power, mining jobs and coming coal-plant retirements—the sector will barely rebound to 2019 levels, a far more telling comparison than to 2020, the worst year for U.S. coal in decades.
U.S. coal production
Take U.S. coal production, the broadest measure of the industry’s condition. This year’s output is expected to be 588 million tons, up 10% from 2020’s 535 million tons, according to October’s Short-Term Energy Outlook from the Energy Information Administration. That seems like a decent rebound, but it’s actually 118 million tons lower than in 2019, and, other than 2020, would be the lowest since 1971.
Coal use for electric power
Coal use for electric power is up over last year, too. The EIA’s latest outlook expects an 84-million-ton, or 19%, increase, to 521 million tons, compared with the 437 million tons used in 2020. Once again, this appears to be a substantial recovery—except that it’s lower than 2019’s 539 million tons. This is significant because more than 90% of the coal consumed in the U.S. is used to generate electricity.
This poor recovery in coal use looks even worse considering the price of natural gas rose 83% from $2.47 per thousand cubic feet in the third quarter of 2019 to $4.53 in the third quarter of this year. And, as IEEFA has noted about the energy transition in U.S. electricity markets, coal and gas together have not gained market share, and are instead continuing to lose ground to renewables. This is a trend that will continue for the foreseeable future, given the ongoing construction boom in utility-scale solar and wind. If anything, high prices for coal and gas, if sustained, are likely to cause the switch to renewables to accelerate.
Coal’s domestic market continues to shrink, too. More than 80GW of coal-plant retirements—more than one-third of the current operating capacity—are already scheduled to be retired by the end of 2030. IEEFA estimates these units used 166 million tons of coal in 2019, which would cut demand to about 375 million tons by the end of the decade, and this does not account for any new retirement announcements that could be made. On top of this, the remaining coal plants are likely to run less and less. EIA data shows the capacity factor for coal plants (a measure of how much of their generating potential is actually used) fell from 62.8% in 2011 to just 40.2% in 2020. IEEFA estimates that even a modest decline in capacity factors at the plants expected to operate after 2030 could result in a further loss of more than 80 million tons, bringing the total drop in coal demand from the U.S. power sector to about 250 million tons. In other words, coal’s largest U.S. market could shrink as much as 50% in just nine years.
U.S. coal mining jobs continue to decline
Another sign that coal mining isn’t recovering is the scale and timing of job losses. Nearly 24,000 jobs have been cut—a 29% decline—since 2019, when an average of 81,478 people were working for either coal-mine operators or contractors. This includes a loss of more than 6,100 jobs between 2020 and the first half of 2021, according to the latest figures from the Mine Safety and Health Administration, leaving just 57,497 workers in coal mining. That’s just half the number employed as recently as 2014.
Exports
With surging prices for coal in international markets—a complete turnaround from a year ago—coal exports should be a bright spot for American producers. No doubt for the companies that are exporting, there will be a significant boost to their bottom lines, because volumes are set to grow by 34% this year compared with 2020, to 92.6 million tons. Yet even here, this only returns exports to the 2019 level of 93.8 million tons, and the EIA outlook sees almost no further growth in 2022, when it expects 94.8 million tons to be sold abroad.
It is not surprising that coal has staged at least some comeback over 2020—by many measures the worst year for the industry in decades. What is surprising is that the rebound has fallen short of even 2019 in the critical measures of production, consumption by the power sector and jobs. This year’s high coal prices are likely to improve the weak finances at many mining companies, at least temporarily, but they won’t change the sector’s long-term decline. If anything, the high cost of coal is making the economics of switching to lower-cost renewables and storage even more compelling, and could result in utilities and other power producers accelerating their shift away from using coal.
By Seth Feaster
Data Analyst
IEEFA Energy
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 20 October 21
CHINA COAL HITS RECORD HIGH AMID TIGHT SUPPLIES - REUTERS
China coal prices hit a record high on Tuesday buoyed by a widening power crunch and cold weather despite Beijing’s efforts to bolster supply ...
Wednesday, 20 October 21
MARKET INSIGHT - INTERMODAL
IMO 2020, Ballast Water Treatment regulations, Green Recycling, GHG emissions, EEXI, CII, ETS, Fit for 55, Carbon price/levy, the Poseidon Principl ...
Tuesday, 19 October 21
SPONGE IRON SECTOR MIGHT REPORT NEGATIVE GROWTH DUE TO COAL CRISIS: SIMA - PTI
The domestic sponge iron industry might report a negative growth in the ongoing December quarter “if the shortage of coal is allowed to conti ...
Tuesday, 19 October 21
COAL INDIA, THE FALL GUY FOR POWER CRISIS - INDIA EXPRESS
The post-Covid economic recovery has led to a major increase in the demand for power, both in India and globally. In India, coal-based power plants ...
Saturday, 16 October 21
SOLAR INSTALLATION SURGE PUTS INDIA ON TRACK TO CAP COAL-FIRED POWER AS EARLY AS 2024 - IEEFA
Recent increase in solar power installations could push coal to peak sooner than expected
If India keeps installing solar capacity a ...
|
|
|
Showing 446 to 450 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Banpu Public Company Limited - Thailand
- Global Coal Blending Company Limited - Australia
- Marubeni Corporation - India
- Coal and Oil Company - UAE
- Indo Tambangraya Megah - Indonesia
- Bhatia International Limited - India
- Aditya Birla Group - India
- Goldman Sachs - Singapore
- Global Business Power Corporation, Philippines
- Star Paper Mills Limited - India
- Minerals Council of Australia
- Kapuas Tunggal Persada - Indonesia
- Medco Energi Mining Internasional
- Planning Commission, India
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- Directorate Of Revenue Intelligence - India
- Alfred C Toepfer International GmbH - Germany
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Tamil Nadu electricity Board
- Merrill Lynch Commodities Europe
- Dalmia Cement Bharat India
- Krishnapatnam Port Company Ltd. - India
- Indian Energy Exchange, India
- San Jose City I Power Corp, Philippines
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- Mercator Lines Limited - India
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Cement Manufacturers Association - India
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- Commonwealth Bank - Australia
- Semirara Mining Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Jaiprakash Power Ventures ltd
- Neyveli Lignite Corporation Ltd, - India
- Sarangani Energy Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Independent Power Producers Association of India
- Kumho Petrochemical, South Korea
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Attock Cement Pakistan Limited
- PetroVietnam Power Coal Import and Supply Company
- Standard Chartered Bank - UAE
- Australian Coal Association
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- Sinarmas Energy and Mining - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bukit Makmur.PT - Indonesia
- Central Java Power - Indonesia
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Riau Bara Harum - Indonesia
- Port Waratah Coal Services - Australia
- Ambuja Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- PowerSource Philippines DevCo
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Romanian Commodities Exchange
- GN Power Mariveles Coal Plant, Philippines
- Kaltim Prima Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Wilmar Investment Holdings
- Eastern Coal Council - USA
- Gujarat Sidhee Cement - India
- Samtan Co., Ltd - South Korea
- South Luzon Thermal Energy Corporation
- Straits Asia Resources Limited - Singapore
- IHS Mccloskey Coal Group - USA
- Edison Trading Spa - Italy
- MS Steel International - UAE
- ASAPP Information Group - India
- Mjunction Services Limited - India
- Siam City Cement - Thailand
- Borneo Indobara - Indonesia
- Carbofer General Trading SA - India
- Bangladesh Power Developement Board
- London Commodity Brokers - England
- Billiton Holdings Pty Ltd - Australia
- Bharathi Cement Corporation - India
- Parliament of New Zealand
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- Madhucon Powers Ltd - India
- GVK Power & Infra Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Wood Mackenzie - Singapore
- Singapore Mercantile Exchange
- Coastal Gujarat Power Limited - India
- Mercuria Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Economic Council, Georgia
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- Makarim & Taira - Indonesia
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- Meralco Power Generation, Philippines
- Globalindo Alam Lestari - Indonesia
- Baramulti Group, Indonesia
- VISA Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- India Bulls Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Vedanta Resources Plc - India
- Renaissance Capital - South Africa
- CNBM International Corporation - China
- Kalimantan Lumbung Energi - Indonesia
- Altura Mining Limited, Indonesia
- White Energy Company Limited
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petron Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Antam Resourcindo - Indonesia
- Therma Luzon, Inc, Philippines
- Central Electricity Authority - India
- The Treasury - Australian Government
- Energy Link Ltd, New Zealand
- Electricity Generating Authority of Thailand
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- SMC Global Power, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Thiess Contractors Indonesia
- Latin American Coal - Colombia
- Price Waterhouse Coopers - Russia
- IEA Clean Coal Centre - UK
- Thai Mozambique Logistica
- Energy Development Corp, Philippines
- Posco Energy - South Korea
- Electricity Authority, New Zealand
- Ind-Barath Power Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- New Zealand Coal & Carbon
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- Kohat Cement Company Ltd. - Pakistan
- Bhoruka Overseas - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sojitz Corporation - Japan
- Holcim Trading Pte Ltd - Singapore
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Maharashtra Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Sree Jayajothi Cements Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Sical Logistics Limited - India
- Bhushan Steel Limited - India
- Orica Mining Services - Indonesia
- McConnell Dowell - Australia
- Anglo American - United Kingdom
- Jindal Steel & Power Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- Uttam Galva Steels Limited - India
- Australian Commodity Traders Exchange
- Simpson Spence & Young - Indonesia
- Indonesian Coal Mining Association
- Sakthi Sugars Limited - India
- Indika Energy - Indonesia
- SMG Consultants - Indonesia
- Chamber of Mines of South Africa
- Maheswari Brothers Coal Limited - India
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bulk Trading Sa - Switzerland
- LBH Netherlands Bv - Netherlands
- Larsen & Toubro Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- European Bulk Services B.V. - Netherlands
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- Africa Commodities Group - South Africa
|
| |
| |
|
