COALspot.com keeps you connected across the coal world

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Wednesday, 03 November 21
HIGHER COKING COAL PRICES TO PARE PROFITABILITY OF STEELMAKERS IN SECOND HALF OF FY22 - CRISIL RATINGS
The operating margin of primary steelmakers will reduce by a third to 24-26% in the second half of this fiscal versus the first half as input cost soars owing to a more than 2x rise in coking coal prices since July.
 
However, for the full fiscal, the operating margin will average a robust 31-32%, a good ~400 basis points (bps) higher than in last fiscal, due to a strong first half that saw healthy steel prices and moderate input costs.
 
The consequent robust accruals will support increased capital expenditure, continued deleveraging and strengthening of balance sheets, a CRISIL study of the top five steelmakers, which account for 58% of domestic production, shows. Global coking coal prices have rallied strongly since July, rising from ~$175 per tonne in June to ~$400 per tonne in October, mainly due to disruptions in the Australian and Chinese mines, and logistical issues such as freight and container unavailability, amid healthy demand from global steel producers, especially ex-China.
 
The prices are expected to ease only gradually as supply takes time to ramp up. Given that domestic primary steel producers rely mainly on imported coking coal, their production costs will rise sharply.
 
In contrast, iron ore, the other key raw material that accounts for 15-20% of the cost of production, is entirely met from domestic sources (captive plus merchant supplies). Although global iron ore prices have fallen ~60% between July and October, domestic prices have fallen only ~ 30% as supply continues to be tight.
 
Says Naveen Vaidyanathan, Director, CRISIL Ratings, “The surge in coking coal prices, which account for about a third of the total cost of production, will materially elevate cost pressures for domestic primary steel makers. At the same time, the fall in domestic iron ore prices has been significantly lower than the increase in coking coal prices, thereby providing limited cushion. These factors will lead to an overall increase in cost of production by ~ 30% for domestic steelmakers in the second half of the fiscal.”
 
Global steel prices after rallying in the first half of this fiscal by ~1.8x the average price last fiscal are expected to remain healthy in the second half. While prices were supported by strong demand and costlier iron ore in the first half, the second half will see more supply cuts in China as part of green initiatives there, and higher coal costs. Prices are expected to average $850-900 per tonne this fiscal, more than 60% higher on-year.
 
Domestic steel prices, which are significantly driven by the landed cost of imports, have also continued to be strong despite some moderation in the second quarter of this fiscal due to weak domestic demand amid the second wave.
 
Further, healthy global realisations, strong domestic demand growth (14-16% on-year this fiscal), high export potential and increased cost of production are expected to prop domestic prices during second half of the fiscal.
 
Says Ankush Tyagi, Team Leader, CRISIL Ratings, “Although domestic steel prices are expected to remain strong, further upside from current levels could be limited because the discount of domestic steel prices to the landed cost of imports has already reduced to ~15% in October from ~ 25% at the beginning of the fiscal.
 
Also, players could witness challenges in taking steep price hikes in the domestic market due to the nascent economic recovery. This, along with increased cost of production, could reduce operating margins to 24-26% in the second half against an estimated 35-37% in the first half. That said, the average operating margin for the fiscal could still be 350-400 bps higher than ~27.5% last fiscal.”
 
Healthy annual accruals should support planned capex towards capacity expansion and also strengthen the balance sheet of the players. Net debt-to-Ebitda is expected to be less than 1 time this fiscal against 1.9 times last fiscal, whereas interest cover will increase to more than 8.5 times, almost double from last fiscal.
 
A sharper-than-expected correction in global steel prices, weaker global demand, significantly higher-than-expected input costs would be the key monitorables from here.
Source: IIFL


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Wednesday, 05 January 22
INDONESIA WARNS COAL SUPPLY CRUNCH NOT OVER AS CHINA PRICES RALLY - REUTERS
Indonesia has warned that its coal supply situation remains critical, ahead of Wednesday’s (Jan 5) review of its export ban, unnerving global ...


Tuesday, 28 December 21
INDIA'S ADANI NEARS FIRST COAL SHIPMENT FROM SHUNNED AUSTRALIAN MINE - REUTERS
India’s Adani Group ADEL.NS is preparing to ship the first coal cargo from Australia’s most controversial mine, after battling a seven- ...


Thursday, 23 December 21
COAL TO STAY AS MAJOR SOURCE OF ENERGY IN FORESEEABLE FUTURE: JOSHI - BUSINESS STANDARD
Coal will stay as a major source of energy in the foreseeable future as it is an affordable source of energy with substantial reserve, Parliament w ...


Thursday, 23 December 21
ANNUAL U.S. COAL-FIRED ELECTRICITY GENERATION WILL INCREASE FOR THE FIRST TIME SINCE 2014 - EIA
From December 20 through December 30, Today in Energy will feature some of our favorite articles from 2021. Today’s article was originally pu ...


Thursday, 23 December 21
COAL DEMAND TO PEAK IN INDIA BY 2030, WILL BACK UP RENEWABLES: NITI REPORT - BUSINESS STANDARD
Coal will remain India’s mainstay energy source and the country will shape global demand this decade, two reports have said a month after the ...


   1 2 3 4 5   
Showing 11 to 15 news of total 6503
News by Category
Popular News
 
Total Members : 27,706
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Karbindo Abesyapradhi - Indoneisa
  • Tata Power - India
  • Ambuja Cements Ltd - India
  • Global Coal Blending Company Limited - Australia
  • Star Paper Mills Limited - India
  • Japan Coal Energy Center
  • Britmindo - Indonesia
  • Maybank - Singapore
  • PLN - Indonesia
  • TRAFIGURA, South Korea
  • Trasteel International SA, Italy
  • DBS Bank - Singapore
  • Gupta Coal India Ltd
  • GMR Energy Limited - India
  • Bhoruka Overseas - Indonesia
  • Chettinad Cement Corporation Ltd - India
  • Indonesian Coal Mining Association
  • BRS Brokers - Singapore
  • Kartika Selabumi Mining - Indonesia
  • Inco-Indonesia
  • Indonesia Power. PT
  • Rio Tinto Coal - Australia
  • Malabar Cements Ltd - India
  • EMO - The Netherlands
  • Meralco Power Generation, Philippines
  • Inspectorate - India
  • Chamber of Mines of South Africa
  • Indika Energy - Indonesia
  • Billiton Holdings Pty Ltd - Australia
  • Kumho Petrochemical, South Korea
  • Cigading International Bulk Terminal - Indonesia
  • IOL Indonesia
  • Iligan Light & Power Inc, Philippines
  • CCIC - Indonesia
  • Global Business Power Corporation, Philippines
  • AsiaOL BioFuels Corp., Philippines
  • Ind-Barath Power Infra Limited - India
  • Bukit Makmur.PT - Indonesia
  • Sree Jayajothi Cements Limited - India
  • Sical Logistics Limited - India
  • Ministry of Transport, Egypt
  • Argus Media - Singapore
  • Humpuss - Indonesia
  • Straits Asia Resources Limited - Singapore
  • U S Energy Resources
  • Bank of America
  • Indogreen Group - Indonesia
  • Rudhra Energy - India
  • Jaiprakash Power Ventures ltd
  • Jindal Steel & Power Ltd - India
  • bp singapore
  • Kideco Jaya Agung - Indonesia
  • Mjunction Services Limited - India
  • Salva Resources Pvt Ltd - India
  • Tanito Harum - Indonesia
  • CNBM International Corporation - China
  • Mintek Dendrill Indonesia
  • Coal and Oil Company - UAE
  • Coalindo Energy - Indonesia
  • Barclays Capital - USA
  • Central Java Power - Indonesia
  • Merrill Lynch Bank
  • Cosco
  • Baramulti Group, Indonesia
  • Xindia Steels Limited - India
  • Tamil Nadu electricity Board
  • Tata Chemicals Ltd - India
  • MS Steel International - UAE
  • Maruti Cements - India
  • Makarim & Taira - Indonesia
  • McConnell Dowell - Australia
  • Kobexindo Tractors - Indoneisa
  • Clarksons - UK
  • Georgia Ports Authority, United States
  • Therma Luzon, Inc, Philippines
  • Petrochimia International Co. Ltd.- Taiwan
  • Samsung - South Korea
  • Energy Development Corp, Philippines
  • Gresik Semen - Indonesia
  • Siam City Cement PLC, Thailand
  • Manunggal Multi Energi - Indonesia
  • Uttam Galva Steels Limited - India
  • UOB Asia (HK) Ltd
  • Binh Thuan Hamico - Vietnam
  • Credit Suisse - India
  • LBH Netherlands Bv - Netherlands
  • Merrill Lynch Commodities Europe
  • GVK Power & Infra Limited - India
  • Ince & co LLP
  • TANGEDCO India
  • Holcim Trading Pte Ltd - Singapore
  • Oldendorff Carriers - Singapore
  • Australian Commodity Traders Exchange
  • Indorama - Singapore
  • Jatenergy - Australia
  • International Coal Ventures Pvt Ltd - India
  • CIMB Investment Bank - Malaysia
  • RBS Sempra - UK
  • PLN Batubara - Indonesia
  • Toyota Tsusho Corporation, Japan
  • Ernst & Young Pvt. Ltd.
  • ASAPP Information Group - India
  • Thermax Limited - India
  • Panama Canal Authority
  • Price Waterhouse Coopers - Russia
  • Edison Trading Spa - Italy
  • Bank of China, Malaysia
  • Bangkok Bank PCL
  • Coal India Limited
  • Energy Link Ltd, New Zealand
  • IMC Shipping - Singapore
  • EIA - United States
  • Grasim Industreis Ltd - India
  • Vijayanagar Sugar Pvt Ltd - India
  • Simpson Spence & Young - Indonesia
  • Mechel - Russia
  • KEPCO - South Korea
  • TNPL - India
  • Thai Mozambique Logistica
  • Bangladesh Power Developement Board
  • SMG Consultants - Indonesia
  • San Jose City I Power Corp, Philippines
  • Goldman Sachs - Singapore
  • ACC Limited - India
  • Arch Coal - USA
  • PTC India Limited - India
  • Cemex - Philippines
  • Indo Tambangraya Megah - Indonesia
  • Carbofer General Trading SA - India
  • Glencore India Pvt. Ltd
  • Port Waratah Coal Services - Australia
  • Bayan Resources Tbk. - Indonesia
  • NALCO India
  • Enel Italy
  • KPCL - India
  • Romanian Commodities Exchange
  • Bukit Asam (Persero) Tbk - Indonesia
  • Asian Development Bank
  • White Energy Company Limited
  • Eastern Energy - Thailand
  • Semirara Mining Corp, Philippines
  • Independent Power Producers Association of India
  • Pendopo Energi Batubara - Indonesia
  • Aboitiz Power Corporation - Philippines
  • MEC Coal - Indonesia
  • Thomson Reuters GRC
  • Meenaskhi Energy Private Limited - India
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Altura Mining Limited, Indonesia
  • APGENCO India
  • New Zealand Coal & Carbon
  • Vedanta Resources Plc - India
  • Adaro Indonesia
  • GAC Shipping (India) Pvt Ltd
  • Australian Coal Association
  • Orica Australia Pty. Ltd.
  • GNFC Limited - India
  • London Commodity Brokers - England
  • Renaissance Capital - South Africa
  • WorleyParsons
  • Cement Manufacturers Association - India
  • Runge Indonesia
  • Vale Mozambique
  • Dalmia Cement Bharat India
  • Posco Energy - South Korea
  • Mitsui
  • JPower - Japan
  • Ministry of Finance - Indonesia
  • Directorate General of MIneral and Coal - Indonesia
  • Jorong Barutama Greston.PT - Indonesia
  • Power Finance Corporation Ltd., India
  • Formosa Plastics Group - Taiwan
  • Economic Council, Georgia
  • Indian School of Mines
  • Bhatia International Limited - India
  • Africa Commodities Group - South Africa
  • SGS (Thailand) Limited
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Bhushan Steel Limited - India
  • Essar Steel Hazira Ltd - India
  • UBS Singapore
  • Globalindo Alam Lestari - Indonesia
  • Metalloyd Limited - United Kingdom
  • The Treasury - Australian Government
  • Bharathi Cement Corporation - India
  • CoalTek, United States
  • Thailand Anthracite
  • Platou - Singapore
  • TeaM Sual Corporation - Philippines
  • Sarangani Energy Corporation, Philippines
  • World Coal - UK
  • SUEK AG - Indonesia
  • IHS Mccloskey Coal Group - USA
  • Commonwealth Bank - Australia
  • Latin American Coal - Colombia
  • Sakthi Sugars Limited - India
  • Intertek Mineral Services - Indonesia
  • SN Aboitiz Power Inc, Philippines
  • McKinsey & Co - India
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Sucofindo - Indonesia
  • Gujarat Mineral Development Corp Ltd - India
  • Deloitte Consulting - India
  • HSBC - Hong Kong
  • Mitsubishi Corporation
  • Borneo Indobara - Indonesia
  • Antam Resourcindo - Indonesia
  • Wilmar Investment Holdings
  • Parliament of New Zealand
  • Sinarmas Energy and Mining - Indonesia
  • Eastern Coal Council - USA
  • Idemitsu - Japan
  • Medco Energi Mining Internasional
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Kalimantan Lumbung Energi - Indonesia
  • Pipit Mutiara Jaya. PT, Indonesia
  • Vitol - Bahrain
  • Videocon Industries ltd - India
  • Coastal Gujarat Power Limited - India
  • ING Bank NV - Singapore
  • Electricity Generating Authority of Thailand
  • Miang Besar Coal Terminal - Indonesia
  • Standard Chartered Bank - UAE
  • KPMG - USA
  • PowerSource Philippines DevCo
  • BNP Paribas - Singapore
  • TNB Fuel Sdn Bhd - Malaysia
  • Thriveni
  • J M Baxi & Co - India
  • Qatrana Cement - Jordan
  • NTPC Limited - India
  • Ministry of Mines - Canada
  • Karaikal Port Pvt Ltd - India
  • Minerals Council of Australia
  • Coaltrans Conferences
  • Bulk Trading Sa - Switzerland
  • Coal Orbis AG
  • PetroVietnam
  • Malco - India
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Wood Mackenzie - Singapore
  • Madhucon Powers Ltd - India
  • Infraline Energy - India
  • The India Cements Ltd
  • Coeclerici Indonesia
  • Indian Energy Exchange, India
  • Semirara Mining and Power Corporation, Philippines
  • IEA Clean Coal Centre - UK
  • Riau Bara Harum - Indonesia
  • CESC Limited - India
  • ETA - Dubai
  • Central Electricity Authority - India
  • Surastha Cement
  • Kepco SPC Power Corporation, Philippines
  • Geoservices-GeoAssay Lab
  • Agrawal Coal Company - India
  • Bahari Cakrawala Sebuku - Indonesia
  • VISA Power Limited - India
  • Kaltim Prima Coal - Indonesia
  • Thiess Contractors Indonesia
  • Samtan Co., Ltd - South Korea
  • World Bank
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Asmin Koalindo Tuhup - Indonesia
  • Sojitz Corporation - Japan
  • Planning Commission, India
  • Gujarat Electricity Regulatory Commission - India
  • Platts
  • Siam City Cement - Thailand
  • Mercator Lines Limited - India
  • Barasentosa Lestari - Indonesia
  • Berau Coal - Indonesia
  • Permata Bank - Indonesia
  • Vizag Seaport Private Limited - India
  • Mitra SK Pvt Ltd - India
  • PetroVietnam Power Coal Import and Supply Company
  • Rashtriya Ispat Nigam Limited - India
  • Directorate Of Revenue Intelligence - India
  • GHCL Limited - India
  • The University of Queensland
  • Savvy Resources Ltd - HongKong
  • Heidelberg Cement - Germany
  • Interocean Group of Companies - India
  • Kapuas Tunggal Persada - Indonesia
  • India Bulls Power Limited - India
  • Neyveli Lignite Corporation Ltd, - India
  • Banpu Public Company Limited - Thailand
  • Total Coal South Africa
  • Indian Oil Corporation Limited
  • Adani Power Ltd - India
  • Alfred C Toepfer International GmbH - Germany
  • KOWEPO - South Korea
  • Noble Europe Ltd - UK
  • Freeport Indonesia
  • Anglo American - United Kingdom
  • Larsen & Toubro Limited - India
  • ICICI Bank Limited - India
  • IBC Asia (S) Pte Ltd
  • SMC Global Power, Philippines
  • Peabody Energy - USA
  • OCBC - Singapore
  • European Bulk Services B.V. - Netherlands
  • Core Mineral Indonesia
  • Leighton Contractors Pty Ltd - Australia
  • Singapore Mercantile Exchange
  • Fearnleys - India
  • Ceylon Electricity Board - Sri Lanka
  • ANZ Bank - Australia
  • OPG Power Generation Pvt Ltd - India
  • Orica Mining Services - Indonesia
  • Shree Cement - India
  • Deutsche Bank - India
  • Kobe Steel Ltd - Japan
  • Maharashtra Electricity Regulatory Commission - India
  • Kohat Cement Company Ltd. - Pakistan
  • South Luzon Thermal Energy Corporation
  • Maersk Broker
  • PNOC Exploration Corporation - Philippines
  • The State Trading Corporation of India Ltd
  • Attock Cement Pakistan Limited
  • SRK Consulting
  • Cebu Energy, Philippines
  • Pinang Coal Indonesia
  • Sindya Power Generating Company Private Ltd
  • Cargill India Pvt Ltd
  • Mercuria Energy - Indonesia
  • JPMorgan - India
  • globalCOAL - UK
  • Petrosea - Indonesia
  • Reliance Power - India
  • Petron Corporation, Philippines
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Xstrata Coal
  • Moodys - Singapore
  • Arutmin Indonesia
  • Parry Sugars Refinery, India
  • Shenhua Group - China
  • TGV SRAAC LIMITED, India
  • Cardiff University - UK
  • Asia Cement - Taiwan
  • SASOL - South Africa
  • Lanco Infratech Ltd - India
  • Gujarat Sidhee Cement - India
  • Marubeni Corporation - India
  • GB Group - China
  • Timah Investasi Mineral - Indoneisa
  • Maheswari Brothers Coal Limited - India
  • GN Power Mariveles Coal Plant, Philippines
  • Russian Coal LLC
  • Lafarge - France
  • Electricity Authority, New Zealand
  • Krishnapatnam Port Company Ltd. - India
  • Bukit Baiduri Energy - Indonesia
  • Global Green Power PLC Corporation, Philippines
  • Aditya Birla Group - India