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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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Saturday, 27 March 10
CHINA TO REMAIN NET COAL IMPORTER IN NEAR FUTURE - STEEL GURU
Xinhua News cited Mr Wu Chenghou a councilor with the China Coal Transportation and Marketing Association as saying that China will remain a net coa ...
Friday, 26 March 10
CHINA PLANS TO INCREASES IMPORT COAL GREATLY IN 2010
– Asia Pacific Coal Trading & Investment Outlook 2010-
COALspot.com (Press Release): China plans to increase coal import significantly ...
Friday, 26 March 10
NTPC IN TALKS FOR INDONESIAN MINE - LIVE MINT
The deal for the coal mine with 1.8 bn tonnes of reserves may be valued at $1 bn
Live Mint reported that, State-run power utility NTPC Ltd is in ta ...
Friday, 26 March 10
ESSAR GROUP SIGNS DEAL FOR INDONESIAN COAL MINE - BUSINESS LINE
Looking ahead
The coal from the Indonesian mine would provide raw material to the group's power projects
The Aries coal mines acquired by the gro ...
Thursday, 25 March 10
CHINA RAILWAY WINS $4.8 BILLION INDONESIA PROJECT - BLOOMBERG
Bloomberg reported that, China Railway Group Ltd. won a $4.8 billion order from PT Bukit Asam, Indonesia’s state-owned coal producer, for a co ...
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Showing 5921 to 5925 news of total 6871 |
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- Oldendorff Carriers - Singapore
- Orica Australia Pty. Ltd.
- Krishnapatnam Port Company Ltd. - India
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Medco Energi Mining Internasional
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- Marubeni Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Thai Mozambique Logistica
- TNB Fuel Sdn Bhd - Malaysia
- Georgia Ports Authority, United States
- Australian Commodity Traders Exchange
- Siam City Cement - Thailand
- San Jose City I Power Corp, Philippines
- Independent Power Producers Association of India
- Gujarat Sidhee Cement - India
- Kumho Petrochemical, South Korea
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- GAC Shipping (India) Pvt Ltd
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Trasteel International SA, Italy
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- The University of Queensland
- CIMB Investment Bank - Malaysia
- Miang Besar Coal Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Chamber of Mines of South Africa
- Cigading International Bulk Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- Gujarat Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Agrawal Coal Company - India
- Tata Chemicals Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- Wood Mackenzie - Singapore
- Vedanta Resources Plc - India
- Larsen & Toubro Limited - India
- European Bulk Services B.V. - Netherlands
- Anglo American - United Kingdom
- Kaltim Prima Coal - Indonesia
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- Jorong Barutama Greston.PT - Indonesia
- Petron Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Bhushan Steel Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Latin American Coal - Colombia
- Madhucon Powers Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Semirara Mining Corp, Philippines
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Economic Council, Georgia
- Posco Energy - South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vizag Seaport Private Limited - India
- Binh Thuan Hamico - Vietnam
- Timah Investasi Mineral - Indoneisa
- Indian Energy Exchange, India
- Africa Commodities Group - South Africa
- Carbofer General Trading SA - India
- South Luzon Thermal Energy Corporation
- Metalloyd Limited - United Kingdom
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- Kartika Selabumi Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Sarangani Energy Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Sojitz Corporation - Japan
- Therma Luzon, Inc, Philippines
- Heidelberg Cement - Germany
- Uttam Galva Steels Limited - India
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- Edison Trading Spa - Italy
- Iligan Light & Power Inc, Philippines
- Makarim & Taira - Indonesia
- Kobexindo Tractors - Indoneisa
- Tamil Nadu electricity Board
- Attock Cement Pakistan Limited
- Kapuas Tunggal Persada - Indonesia
- The State Trading Corporation of India Ltd
- Bhatia International Limited - India
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- Indian Oil Corporation Limited
- MS Steel International - UAE
- Salva Resources Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Port Waratah Coal Services - Australia
- Indo Tambangraya Megah - Indonesia
- Dalmia Cement Bharat India
- Bhoruka Overseas - Indonesia
- Essar Steel Hazira Ltd - India
- Meralco Power Generation, Philippines
- Rashtriya Ispat Nigam Limited - India
- AsiaOL BioFuels Corp., Philippines
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Planning Commission, India
- Aditya Birla Group - India
- Sinarmas Energy and Mining - Indonesia
- SMC Global Power, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Business Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Australian Coal Association
- Wilmar Investment Holdings
- Electricity Generating Authority of Thailand
- Central Electricity Authority - India
- Commonwealth Bank - Australia
- Bharathi Cement Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Parliament of New Zealand
- Savvy Resources Ltd - HongKong
- Karaikal Port Pvt Ltd - India
- ICICI Bank Limited - India
- Bulk Trading Sa - Switzerland
- CNBM International Corporation - China
- Altura Mining Limited, Indonesia
- Simpson Spence & Young - Indonesia
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- Meenaskhi Energy Private Limited - India
- PTC India Limited - India
- Bukit Makmur.PT - Indonesia
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Riau Bara Harum - Indonesia
- Mjunction Services Limited - India
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- Barasentosa Lestari - Indonesia
- Parry Sugars Refinery, India
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- Deloitte Consulting - India
- Mercator Lines Limited - India
- Rio Tinto Coal - Australia
- Minerals Council of Australia
- ASAPP Information Group - India
- Ambuja Cements Ltd - India
- Interocean Group of Companies - India
- Bangladesh Power Developement Board
- White Energy Company Limited
- Maheswari Brothers Coal Limited - India
- Indika Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- The Treasury - Australian Government
- Indogreen Group - Indonesia
- Sindya Power Generating Company Private Ltd
- Power Finance Corporation Ltd., India
- Siam City Cement PLC, Thailand
- Singapore Mercantile Exchange
- Videocon Industries ltd - India
- Sree Jayajothi Cements Limited - India
- London Commodity Brokers - England
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Electricity Authority, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Grasim Industreis Ltd - India
- Jaiprakash Power Ventures ltd
- Bahari Cakrawala Sebuku - Indonesia
- Malabar Cements Ltd - India
- SMG Consultants - Indonesia
- Ministry of Finance - Indonesia
- Bayan Resources Tbk. - Indonesia
- Cement Manufacturers Association - India
- Mercuria Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Coal Blending Company Limited - Australia
- Borneo Indobara - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maharashtra Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Goldman Sachs - Singapore
- Thiess Contractors Indonesia
- LBH Netherlands Bv - Netherlands
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