We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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.
|
|
“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
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 01 March 10
166 MINING COMPANIES THREATEN ENVIRONMENT
Viva News reported that, the Indonesian Forum for the Environment (Walhi) of East Kalimantan reveals that 166 coal mining companies, which are curre ...
Monday, 01 March 10
IRON ORE PRICE NEGOTIATIONS - 80PCT HIKE SEEN BY CHINESE
China Knowledge quoted an insider from a large Chinese steel company said there will be a significant increase in steel prices in the next few month ...
Sunday, 28 February 10
SUPRAMAX CHARTER RATES FOR ONE YEAR IS AROUND US$ 19,000/20,000 PER DAY - VISTAAR SINGAPORE
COALspot.com : The freight market firmed up by almost 10 pct on Supramax and Handy size and about 7 pct on Panamax.
However it was interesting to ...
Sunday, 28 February 10
MINISTRY SEEKS TWO YEAR DELAY TO IMPLEMENT ENVIRONMENT LAW
The Jakarta Post reported that, The ministry of energy and mineral resources has proposed that the government postpone the implementation of the 200 ...
Sunday, 28 February 10
CONTINENTAL TARGETS COAL SALES FROM S AFRICA MINE IN Q2 - MINING WEEKLY
Mining weekly reported that, Junior coal explorer Continental Coal would start coal sales from its Vlakvarkfontein mine, in South Africa, in the sec ...
|
|
|
Showing 5966 to 5970 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Intertek Mineral Services - Indonesia
- Aditya Birla Group - India
- Port Waratah Coal Services - Australia
- Therma Luzon, Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- SMG Consultants - Indonesia
- Indika Energy - Indonesia
- Electricity Authority, New Zealand
- Parry Sugars Refinery, India
- Agrawal Coal Company - India
- South Luzon Thermal Energy Corporation
- Energy Link Ltd, New Zealand
- IEA Clean Coal Centre - UK
- Jaiprakash Power Ventures ltd
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Savvy Resources Ltd - HongKong
- Maharashtra Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Directorate Of Revenue Intelligence - India
- Videocon Industries ltd - India
- Cement Manufacturers Association - India
- Formosa Plastics Group - Taiwan
- Energy Development Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Kartika Selabumi Mining - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Larsen & Toubro Limited - India
- Uttam Galva Steels Limited - India
- Coastal Gujarat Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- Grasim Industreis Ltd - India
- Makarim & Taira - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- San Jose City I Power Corp, Philippines
- GVK Power & Infra Limited - India
- India Bulls Power Limited - India
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- International Coal Ventures Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Wilmar Investment Holdings
- Mjunction Services Limited - India
- SN Aboitiz Power Inc, Philippines
- Meralco Power Generation, Philippines
- Anglo American - United Kingdom
- Ministry of Transport, Egypt
- Bukit Asam (Persero) Tbk - Indonesia
- Power Finance Corporation Ltd., India
- Oldendorff Carriers - Singapore
- Miang Besar Coal Terminal - Indonesia
- Central Electricity Authority - India
- Bukit Baiduri Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Sree Jayajothi Cements Limited - India
- GAC Shipping (India) Pvt Ltd
- Edison Trading Spa - Italy
- Bhoruka Overseas - Indonesia
- Kobexindo Tractors - Indoneisa
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Tamil Nadu electricity Board
- Commonwealth Bank - Australia
- Bayan Resources Tbk. - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
- Parliament of New Zealand
- Heidelberg Cement - Germany
- Wood Mackenzie - Singapore
- Global Green Power PLC Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Australian Coal Association
- OPG Power Generation Pvt Ltd - India
- Indogreen Group - Indonesia
- Africa Commodities Group - South Africa
- VISA Power Limited - India
- Georgia Ports Authority, United States
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement - Thailand
- New Zealand Coal & Carbon
- Xindia Steels Limited - India
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Attock Cement Pakistan Limited
- Dalmia Cement Bharat India
- Medco Energi Mining Internasional
- Minerals Council of Australia
- Orica Mining Services - Indonesia
- Trasteel International SA, Italy
- Salva Resources Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Carbofer General Trading SA - India
- McConnell Dowell - Australia
- GN Power Mariveles Coal Plant, Philippines
- Indian Oil Corporation Limited
- PNOC Exploration Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Economic Council, Georgia
- Ceylon Electricity Board - Sri Lanka
- Mercuria Energy - Indonesia
- Ministry of Mines - Canada
- Essar Steel Hazira Ltd - India
- Romanian Commodities Exchange
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Coal and Oil Company - UAE
- Latin American Coal - Colombia
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Deloitte Consulting - India
- Altura Mining Limited, Indonesia
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- Mercator Lines Limited - India
- Australian Commodity Traders Exchange
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- Indonesian Coal Mining Association
- Vijayanagar Sugar Pvt Ltd - India
- Chamber of Mines of South Africa
- Rio Tinto Coal - Australia
- Alfred C Toepfer International GmbH - Germany
- Bangladesh Power Developement Board
- Bahari Cakrawala Sebuku - Indonesia
- Billiton Holdings Pty Ltd - Australia
- PowerSource Philippines DevCo
- Bulk Trading Sa - Switzerland
- Leighton Contractors Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Central Java Power - Indonesia
- Vedanta Resources Plc - India
- Semirara Mining and Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- SMC Global Power, Philippines
- Thiess Contractors Indonesia
- Coalindo Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The Treasury - Australian Government
- Planning Commission, India
- Karbindo Abesyapradhi - Indoneisa
- Borneo Indobara - Indonesia
- Sakthi Sugars Limited - India
- Gujarat Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- CNBM International Corporation - China
- Bhushan Steel Limited - India
- Vizag Seaport Private Limited - India
- Petron Corporation, Philippines
- Barasentosa Lestari - Indonesia
- The University of Queensland
- IHS Mccloskey Coal Group - USA
- Antam Resourcindo - Indonesia
- Bharathi Cement Corporation - India
- Timah Investasi Mineral - Indoneisa
- Kumho Petrochemical, South Korea
- MS Steel International - UAE
- Global Business Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Standard Chartered Bank - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Generating Authority of Thailand
- Semirara Mining Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- Ministry of Finance - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Mintek Dendrill Indonesia
- Karaikal Port Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Independent Power Producers Association of India
- Manunggal Multi Energi - Indonesia
- ASAPP Information Group - India
- Posco Energy - South Korea
- Bhatia International Limited - India
- Singapore Mercantile Exchange
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- Eastern Coal Council - USA
- London Commodity Brokers - England
- Thai Mozambique Logistica
- Lanco Infratech Ltd - India
- Ambuja Cements Ltd - India
- Sojitz Corporation - Japan
- Sarangani Energy Corporation, Philippines
- Jindal Steel & Power Ltd - India
- GMR Energy Limited - India
|
| |
| |
|
