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Thursday, 04 March 10
GLOBAL COAL PRICES GETS SUPPORT FROM EM DEMAND
 Commodity Online reported that, AP12 coal prices look well supported in 2010 thanks to positive outlook for Chinese coal demand whereas coal demand in Europe, rest of the world is shockingly low and stocks have hardly drawn despite the coldest winter in decades, according to an analysis by Bank of America- Merrill Lynch (BofAML).
Japan, by far the biggest importer of thermal coal, cut back on its appetite for coal by almost 20 million mt last year, to 117million mt. Europe took in 22 million metric tons less last year, driven particularly by Spain, Italy, the UK and France as low natural gas prices supported switching out of coal in the power sector
Last year China imported 70.4 mn mt of thermal coal, relative to outflows of 7.8 mn in 2008. China's imports will witness slowdown due to ramping up of internal proudction, according to BofAML.
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“Last year China imported 70.4 mln mt of thermal coal, relative to outflows of 7.8 mln in 2008. China's imports will witness slowdown due to ramping up of internal production” - BofAML
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Coal prices are protected to the downside by the high marginal cost of production, particularly in Russia. However, the oversupply in Europe will likely keep a lid on API2 prices near-term.
API2 front month coal increased from a low of $75/mt in mid December to $97/mt in early January, sharply outpacing other energy markets. Heavy snowstorms led to local power shortages, particularly in the South of the country.
Perhaps more importantly, a much stronger-than-expected cyclical rebound in China drove power generation growth to new highs, up 33% YoY over the past three months, helping to fuel coal demand. Other Asian countries also experienced a turn-around in electricity generation. In turn, due to the heavy snowfall and rail constraints, China resorted to seaborne coal as opposed to domestically produced material. Elsewhere, a glaringly cold winter in Europe provided some support to sentiment. Producer infrastructure constraints, particularly in Australia, South Africa and Indonesia, temporarily tightened the international coal market.
Ultimately, the 3-week rally in coal did not last and prices reversed sharply in mid January as the snowfalls in China receded and the USD strengthened. In recent weeks, front-month API2 coal traded down to $72.75/mt and has been in the $72/mt to $79/mt range. Chinese imports in January, though still at a very high level, cooled off month-on-month basis. Moreover, big European coal users, like Germany, France and the UK, recorded steep demand losses in January, at a time that they experienced the sharpest winter in decade, BofAML analysis said.
In the UK for instance, coal demand in December equalled 4.6 million mt, down from 6.3 million mt in the prior year. Preliminary data indicates that the trend continued over the past weeks.
Traditional European coal suppliers are doing what they can to manage supply to Europe. Russia has reportedly closed some mines to keep exports to Europe low. South Africa is actively diversifying away from Europe towards demand outlets in Asia Pacific. During 2009, 31% of South African exports went to India, from virtually nothing in previous years. That trend was particularly pronounced over the past months. Although in small volumes, South Africa has also been pushing material into China. More absurdly, Colombia-- who typically exports 50-60% of their coal to Europe with the balance going to the Americas--
has now detected interest in Asia.
Colombia exported small volumes to China in December to the tune of 1.5-1.7 million mt, for the first time ever. Of course, sharply lower freight rates are helping these trade flows. As we see continued supply of new Capesize vessels in 2010, freight will likely remain cheap by historical standards in the near-term. Once freight recovers, possibly at the end of this year with the cyclical demand recovery soaking up the supply in ships, these trade-flows are unlikely to be sustainable.
Europe's coal inventories remain at excessive levels at key import ports in Rotterdam and Amsterdam as supply exceeds demand. BofAML sses strong relationship between spreads in AP12 and coal inventories. Hence it is no surprise that the contango in API2 has steepened even more, with front month to front calendar year spreads at the widest since July last year , reflecting the oversupply in the European market and bulging inventories.
Coal markets in the Pacific are a lot tighter, with inventories relatively low in key coal consumers like China, India and South Korea. Meanwhile, the Newcastle coal market is trading in backwardation. Several coal mines in Australia had to declare force majeure in response to severe rainfalls on the east coast which flooded mines, while major rail lines had to close, clogging up the coal chain infrastructure. 47 vessels are currently again lining up outside Newcastle , underscoring that infrastructure problems will not go away easily, BofAML analysis said.
Overall, the outlook for emerging market coal demand remains very positive though. China is expected buy more seaborne coal as as the Chinese Renminbi is likely to be revalued by mid year. In BofAMl analysis, a CNY revaluation is undoubtedly positive for global thermal coal prices. Other EMs likeMexico and Turkey are sharply ramping up coal imports. India continues to suffer from a negative coal balance and will have to rely on the seaborne market for supplies. On a medium-term horizon, we believe that global seaborne coal prices have immense upside from the current level given the growth in coal-fired generation capacity.
Source:Commodity Online - By Madhurima R S
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Thursday, 08 April 10
INDONESIAN ENERGY MINISTRY SEEKS LONGER MINING CONTRACTS - THE JAKARTAGLOBE
The Jakarta Globe reported that, Energy Minister Darwin Zahedy Saleh said he would seek to amend the mining law to address investors’ complain ...
Thursday, 08 April 10
NAPOCOR GETS ONE OFFER AT COAL TENDER - ABS CBN
ABS- CBN News reported that, Philippine power producer National Power Corp. (Napocor) is likely to buy 50,000 tons of steam coal from PT Berau Coal ...
Wednesday, 07 April 10
DRY BULK MARKET LOOKING FOR DIRECTION
The dry bulk market has kept a low profile during the past week, as evidenced by the small changes of a usually rather turbulent Baltic Dry Index (B ...
Tuesday, 06 April 10
NEWCASTLE COAL EXPORTS RISE 24%, SHIP QUEUE SHORTENS - BLOOMBERG
Bloomberg reported that, Coal shipments from Australia’s Newcastle port, the world’s biggest export harbor for the fuel used in power st ...
Tuesday, 06 April 10
UAE STEEL TRADERS FEAR LOSSES ON GLOBAL HIKE
A sudden spurt in the price of iron ore in the international market has caught local steel traders and manufacturers and a host of other steel-depen ...
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Showing 5896 to 5900 news of total 6871 |
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- Bukit Asam (Persero) Tbk - Indonesia
- Globalindo Alam Lestari - Indonesia
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Aboitiz Power Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- White Energy Company Limited
- Marubeni Corporation - India
- Indonesian Coal Mining Association
- Maharashtra Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Africa Commodities Group - South Africa
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Deloitte Consulting - India
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Sojitz Corporation - Japan
- Bhushan Steel Limited - India
- PTC India Limited - India
- Kobexindo Tractors - Indoneisa
- Orica Mining Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bangladesh Power Developement Board
- Mjunction Services Limited - India
- Mercator Lines Limited - India
- Energy Development Corp, Philippines
- Parliament of New Zealand
- Grasim Industreis Ltd - India
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- Siam City Cement - Thailand
- Global Business Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Samtan Co., Ltd - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Mines - Canada
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ind-Barath Power Infra Limited - India
- Latin American Coal - Colombia
- Tata Chemicals Ltd - India
- Edison Trading Spa - Italy
- Standard Chartered Bank - UAE
- Indo Tambangraya Megah - Indonesia
- Independent Power Producers Association of India
- MS Steel International - UAE
- VISA Power Limited - India
- Sindya Power Generating Company Private Ltd
- Indian Oil Corporation Limited
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- Bharathi Cement Corporation - India
- San Jose City I Power Corp, Philippines
- Ministry of Finance - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vizag Seaport Private Limited - India
- Thiess Contractors Indonesia
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- Australian Coal Association
- AsiaOL BioFuels Corp., Philippines
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- PNOC Exploration Corporation - Philippines
- Georgia Ports Authority, United States
- Romanian Commodities Exchange
- Madhucon Powers Ltd - India
- South Luzon Thermal Energy Corporation
- The State Trading Corporation of India Ltd
- Trasteel International SA, Italy
- Mintek Dendrill Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Interocean Group of Companies - India
- Jindal Steel & Power Ltd - India
- Electricity Generating Authority of Thailand
- Antam Resourcindo - Indonesia
- Eastern Coal Council - USA
- Kideco Jaya Agung - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Transport, Egypt
- European Bulk Services B.V. - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Xindia Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Central Electricity Authority - India
- Ceylon Electricity Board - Sri Lanka
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Sidhee Cement - India
- Salva Resources Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Indika Energy - Indonesia
- Thai Mozambique Logistica
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- Timah Investasi Mineral - Indoneisa
- TeaM Sual Corporation - Philippines
- London Commodity Brokers - England
- Wood Mackenzie - Singapore
- Commonwealth Bank - Australia
- Aditya Birla Group - India
- SN Aboitiz Power Inc, Philippines
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Energy Link Ltd, New Zealand
- Merrill Lynch Commodities Europe
- India Bulls Power Limited - India
- Goldman Sachs - Singapore
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Sakthi Sugars Limited - India
- Rio Tinto Coal - Australia
- Price Waterhouse Coopers - Russia
- Alfred C Toepfer International GmbH - Germany
- GN Power Mariveles Coal Plant, Philippines
- Sree Jayajothi Cements Limited - India
- Meenaskhi Energy Private Limited - India
- Bulk Trading Sa - Switzerland
- Central Java Power - Indonesia
- ASAPP Information Group - India
- Kalimantan Lumbung Energi - Indonesia
- Medco Energi Mining Internasional
- Larsen & Toubro Limited - India
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Planning Commission, India
- Coastal Gujarat Power Limited - India
- CNBM International Corporation - China
- Barasentosa Lestari - Indonesia
- Singapore Mercantile Exchange
- Global Green Power PLC Corporation, Philippines
- Therma Luzon, Inc, Philippines
- GVK Power & Infra Limited - India
- Lanco Infratech Ltd - India
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Petron Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Eastern Energy - Thailand
- Electricity Authority, New Zealand
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- Bukit Baiduri Energy - Indonesia
- Baramulti Group, Indonesia
- Toyota Tsusho Corporation, Japan
- Essar Steel Hazira Ltd - India
- SMC Global Power, Philippines
- Oldendorff Carriers - Singapore
- Economic Council, Georgia
- Neyveli Lignite Corporation Ltd, - India
- Bhatia International Limited - India
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Australian Commodity Traders Exchange
- GAC Shipping (India) Pvt Ltd
- Orica Australia Pty. Ltd.
- Star Paper Mills Limited - India
- Miang Besar Coal Terminal - Indonesia
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- Global Coal Blending Company Limited - Australia
- Power Finance Corporation Ltd., India
- Malabar Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Meralco Power Generation, Philippines
- Borneo Indobara - Indonesia
- The University of Queensland
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Carbofer General Trading SA - India
- Bhoruka Overseas - Indonesia
- Sarangani Energy Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Minerals Council of Australia
- Kaltim Prima Coal - Indonesia
- Uttam Galva Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Maheswari Brothers Coal Limited - India
- Wilmar Investment Holdings
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- Parry Sugars Refinery, India
- Vedanta Resources Plc - India
- Semirara Mining and Power Corporation, Philippines
- Indogreen Group - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- Indian Energy Exchange, India
- GMR Energy Limited - India
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