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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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- Therma Luzon, Inc, Philippines
- Chamber of Mines of South Africa
- Dalmia Cement Bharat India
- Metalloyd Limited - United Kingdom
- LBH Netherlands Bv - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mintek Dendrill Indonesia
- Banpu Public Company Limited - Thailand
- Indika Energy - Indonesia
- Makarim & Taira - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- Deloitte Consulting - India
- Eastern Coal Council - USA
- Billiton Holdings Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- Vizag Seaport Private Limited - India
- Parry Sugars Refinery, India
- Simpson Spence & Young - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- PTC India Limited - India
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- Binh Thuan Hamico - Vietnam
- Sakthi Sugars Limited - India
- Bukit Makmur.PT - Indonesia
- Agrawal Coal Company - India
- Pendopo Energi Batubara - Indonesia
- Kumho Petrochemical, South Korea
- Eastern Energy - Thailand
- Orica Mining Services - Indonesia
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- Tata Chemicals Ltd - India
- Standard Chartered Bank - UAE
- Malabar Cements Ltd - India
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Uttam Galva Steels Limited - India
- Semirara Mining Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Independent Power Producers Association of India
- Port Waratah Coal Services - Australia
- South Luzon Thermal Energy Corporation
- Ind-Barath Power Infra Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Larsen & Toubro Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Renaissance Capital - South Africa
- SN Aboitiz Power Inc, Philippines
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Sree Jayajothi Cements Limited - India
- Mercuria Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Aboitiz Power Corporation - Philippines
- CNBM International Corporation - China
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- Electricity Authority, New Zealand
- Chettinad Cement Corporation Ltd - India
- McConnell Dowell - Australia
- Minerals Council of Australia
- Barasentosa Lestari - Indonesia
- Aditya Birla Group - India
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- Central Java Power - Indonesia
- Manunggal Multi Energi - Indonesia
- Gujarat Sidhee Cement - India
- India Bulls Power Limited - India
- Energy Link Ltd, New Zealand
- Samtan Co., Ltd - South Korea
- Economic Council, Georgia
- SMC Global Power, Philippines
- Oldendorff Carriers - Singapore
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Parliament of New Zealand
- Sindya Power Generating Company Private Ltd
- Gujarat Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- PetroVietnam Power Coal Import and Supply Company
- MS Steel International - UAE
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Global Green Power PLC Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- ASAPP Information Group - India
- Cement Manufacturers Association - India
- Directorate Of Revenue Intelligence - India
- Romanian Commodities Exchange
- GVK Power & Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The University of Queensland
- Sojitz Corporation - Japan
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- Trasteel International SA, Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kartika Selabumi Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- International Coal Ventures Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Straits Asia Resources Limited - Singapore
- Meenaskhi Energy Private Limited - India
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- Bhoruka Overseas - Indonesia
- Semirara Mining and Power Corporation, Philippines
- VISA Power Limited - India
- Salva Resources Pvt Ltd - India
- Videocon Industries ltd - India
- Ministry of Finance - Indonesia
- Bukit Baiduri Energy - Indonesia
- Australian Commodity Traders Exchange
- Australian Coal Association
- TNB Fuel Sdn Bhd - Malaysia
- Indian Oil Corporation Limited
- Krishnapatnam Port Company Ltd. - India
- Meralco Power Generation, Philippines
- Edison Trading Spa - Italy
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- London Commodity Brokers - England
- Africa Commodities Group - South Africa
- Savvy Resources Ltd - HongKong
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Directorate General of MIneral and Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- AsiaOL BioFuels Corp., Philippines
- Energy Development Corp, Philippines
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Karaikal Port Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Anglo American - United Kingdom
- Bhushan Steel Limited - India
- Xindia Steels Limited - India
- Coastal Gujarat Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- Lanco Infratech Ltd - India
- Iligan Light & Power Inc, Philippines
- The Treasury - Australian Government
- Marubeni Corporation - India
- Siam City Cement PLC, Thailand
- SMG Consultants - Indonesia
- GMR Energy Limited - India
- Mercator Lines Limited - India
- Miang Besar Coal Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Orica Australia Pty. Ltd.
- Electricity Generating Authority of Thailand
- Kobexindo Tractors - Indoneisa
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- Essar Steel Hazira Ltd - India
- Latin American Coal - Colombia
- Jindal Steel & Power Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement - Thailand
- Ambuja Cements Ltd - India
- Goldman Sachs - Singapore
- Medco Energi Mining Internasional
- Kapuas Tunggal Persada - Indonesia
- Kaltim Prima Coal - Indonesia
- Indonesian Coal Mining Association
- Interocean Group of Companies - India
- Coal and Oil Company - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Planning Commission, India
- Timah Investasi Mineral - Indoneisa
- CIMB Investment Bank - Malaysia
- Bangladesh Power Developement Board
- Riau Bara Harum - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- Neyveli Lignite Corporation Ltd, - India
- Georgia Ports Authority, United States
- Bulk Trading Sa - Switzerland
- Sical Logistics Limited - India
- Power Finance Corporation Ltd., India
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Thiess Contractors Indonesia
- TeaM Sual Corporation - Philippines
- Bharathi Cement Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Madhucon Powers Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- White Energy Company Limited
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