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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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Monday, 08 March 10
CHINA SHIPPING TO CARRY MORE COAL FOR SHENHUA
Hellenic Shipping News reported that, China Shipping (Group) Company will expect to ship 40 million tons of coal for Shenhua Group in 2010, Li Shaod ...
Sunday, 07 March 10
SHIPS WERE FIXED AT AROUND US$ 16,000 PER DAY FOR TRIP VIA INDONESIA TO INDIA - CAPT. REDDY
COALspot.com: The freight market was quite buoyant this week and BDI was up by 18 pct . The Cape index up by 23.60 pct and Panamax index was up by 1 ...
Saturday, 06 March 10
ESSAR TO BUY US COAL FIRM FOR $550-600 MN
Business-Standard reported that, the Essar Group is close to buying Trinity Coal, one of the top 10 coal producers in the US, in a deal worth $550-6 ...
Friday, 05 March 10
KARNATAKA POWER SEEKS 900,000 TONS STEAMING COAL OVER 9 MONTHS
Bloomberg reported that, Karnataka Power Corp., an Indian electricity generator, is seeking to import 900,000 metric tons of steaming coal over nine ...
Friday, 05 March 10
COAL RALLY ON CHINESE DEMAND SPARKS $59 ESTIMATES
Bloomberg reportd that, A rally that has boosted coal prices 21 percent from their lows last year may have further to go as the coldest U.S. winter ...
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Showing 5956 to 5960 news of total 6871 |
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- TeaM Sual Corporation - Philippines
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- Independent Power Producers Association of India
- McConnell Dowell - Australia
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- Africa Commodities Group - South Africa
- Global Green Power PLC Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Coal Council - USA
- Samtan Co., Ltd - South Korea
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Planning Commission, India
- Star Paper Mills Limited - India
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Sree Jayajothi Cements Limited - India
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- SMG Consultants - Indonesia
- New Zealand Coal & Carbon
- Karaikal Port Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Port Waratah Coal Services - Australia
- Jindal Steel & Power Ltd - India
- Thai Mozambique Logistica
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Bhoruka Overseas - Indonesia
- Electricity Generating Authority of Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Semirara Mining Corp, Philippines
- Standard Chartered Bank - UAE
- Wilmar Investment Holdings
- Asmin Koalindo Tuhup - Indonesia
- Agrawal Coal Company - India
- Metalloyd Limited - United Kingdom
- Bangladesh Power Developement Board
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Billiton Holdings Pty Ltd - Australia
- Coal and Oil Company - UAE
- Australian Commodity Traders Exchange
- Orica Australia Pty. Ltd.
- Global Coal Blending Company Limited - Australia
- Rio Tinto Coal - Australia
- IHS Mccloskey Coal Group - USA
- Siam City Cement - Thailand
- The Treasury - Australian Government
- Essar Steel Hazira Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Rashtriya Ispat Nigam Limited - India
- The University of Queensland
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- Commonwealth Bank - Australia
- White Energy Company Limited
- Aditya Birla Group - India
- Parry Sugars Refinery, India
- Sojitz Corporation - Japan
- Jorong Barutama Greston.PT - Indonesia
- Posco Energy - South Korea
- Central Electricity Authority - India
- Latin American Coal - Colombia
- Holcim Trading Pte Ltd - Singapore
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Kobexindo Tractors - Indoneisa
- Vedanta Resources Plc - India
- Aboitiz Power Corporation - Philippines
- Minerals Council of Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mintek Dendrill Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Mines - Canada
- TNB Fuel Sdn Bhd - Malaysia
- PNOC Exploration Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- Indogreen Group - Indonesia
- Vizag Seaport Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- PetroVietnam Power Coal Import and Supply Company
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- GVK Power & Infra Limited - India
- AsiaOL BioFuels Corp., Philippines
- Indian Energy Exchange, India
- Indian Oil Corporation Limited
- MS Steel International - UAE
- Miang Besar Coal Terminal - Indonesia
- Dalmia Cement Bharat India
- Ceylon Electricity Board - Sri Lanka
- Carbofer General Trading SA - India
- Therma Luzon, Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Barasentosa Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Electricity Authority, New Zealand
- Grasim Industreis Ltd - India
- Trasteel International SA, Italy
- Singapore Mercantile Exchange
- Kepco SPC Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- PowerSource Philippines DevCo
- Mercator Lines Limited - India
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Power Finance Corporation Ltd., India
- Bayan Resources Tbk. - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Savvy Resources Ltd - HongKong
- Eastern Energy - Thailand
- Ministry of Finance - Indonesia
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- Australian Coal Association
- Kapuas Tunggal Persada - Indonesia
- Kumho Petrochemical, South Korea
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Oldendorff Carriers - Singapore
- Petron Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Tamil Nadu electricity Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhatia International Limited - India
- Price Waterhouse Coopers - Russia
- Sindya Power Generating Company Private Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Orica Mining Services - Indonesia
- Indo Tambangraya Megah - Indonesia
- Banpu Public Company Limited - Thailand
- International Coal Ventures Pvt Ltd - India
- Marubeni Corporation - India
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- Larsen & Toubro Limited - India
- European Bulk Services B.V. - Netherlands
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- Manunggal Multi Energi - Indonesia
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
- Sakthi Sugars Limited - India
- Borneo Indobara - Indonesia
- Cement Manufacturers Association - India
- ASAPP Information Group - India
- Alfred C Toepfer International GmbH - Germany
- Timah Investasi Mineral - Indoneisa
- Interocean Group of Companies - India
- The State Trading Corporation of India Ltd
- Kartika Selabumi Mining - Indonesia
- Global Business Power Corporation, Philippines
- Sical Logistics Limited - India
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Salva Resources Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- PTC India Limited - India
- SMC Global Power, Philippines
- Anglo American - United Kingdom
- Thiess Contractors Indonesia
- Renaissance Capital - South Africa
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Maharashtra Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Heidelberg Cement - Germany
- Karbindo Abesyapradhi - Indoneisa
- Merrill Lynch Commodities Europe
- Toyota Tsusho Corporation, Japan
- Economic Council, Georgia
- Indonesian Coal Mining Association
- Georgia Ports Authority, United States
- VISA Power Limited - India
- Parliament of New Zealand
- Jaiprakash Power Ventures ltd
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Neyveli Lignite Corporation Ltd, - India
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Bhushan Steel Limited - India
- Semirara Mining and Power Corporation, Philippines
- Madhucon Powers Ltd - India
- Riau Bara Harum - Indonesia
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- San Jose City I Power Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Baramulti Group, Indonesia
- Romanian Commodities Exchange
- Chettinad Cement Corporation Ltd - India
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Central Java Power - Indonesia
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- Ambuja Cements Ltd - India
- Siam City Cement PLC, Thailand
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