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Wednesday, 22 June 11
BOOMING INDONESIAN COAL EXPORTS - BLEEDING INDIAN POWER INDUSTRY
COALspot.com - Indonesia shipped 28.962 Million tons of coal in May 2011, up by 15.86 percent compared to April export of about 24.995 million tons, Indonesian coal industry sources said. 56.30 percent up year-to year.
China's Indonesian coal imports have jumped up drastically in May by 2.105 MMt compared to its April imports. Chinese coal imports from Indonesia in May was higher than India's imports from Indonesia. India has imported 6.368 million tons in May where’s China has imported about 8.21 MMt which was 1.841 million MT higher.
India has lost its largest Indonesian coal importer status to China first time in the last five months. India was the largest Indonesian coal importer since January 2011 followed by China and other Asian countries. China is expected to import more coal in this month and coming months to increase energy supplies to prevent a worsening of its summer power shortage in seven years.
According to analyst, China faces a power shortfall, and that may extend to 40GW this northern summer, surpassing its 2004 power shortfall. China’s benchmark power-station coal prices rose to the highest since October 2008 as summer electricity demand increased in the world’s fastest-growing major economy, as quoted by Bloomberg its report early this week.
According to Indian coal minister, Indian coal imports may be at 250 million tons per annum by 2016. Coal imports is unavoidable option for Indian utilities due to non availability of economically viable coal from domestic mines. However, according to Indian UMPPs, due to Indonesian government regulation that forces all coal producers must sell coal at government declared monthly prices, would cost them at least US$ 30 per ton higher than they previously budgeted.
"Implementation of this proposed new rule by the Indonesian government ( I.e., the law mandates all coal producers to sell coal at government declared prices) will adversely impact all existing and future imported coal-based power plants in India, including UMPPs," Ashok Khurana, the Director General of the Association of Power Producers, said as reported by an Indian paper.
“When Indian companies invest in Indonesia, they tend to have the intent to sell coal at cost, so that Indonesian business unit remained at no or negligible profits. Taking a holistic view, however, the cash flows in an integrated Indonesian coal mining and Indian power generation unit after this regulation will continue to be similar, except that income taxes will be paid in Indonesia, and the cash flows will need to be brought on the books on Indian power project after paying taxes in Indonesia through appropriate and innovative business structuring,” said Dipesh Dipu, director, at Deloitte, mydigitalfc reported.
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Indonesia has introduced bench mark pricing mechanism for its coal since February 2010, and it has implemented for the domestic supplies as well export market. The pricing was done on very transparent way using four internationally acceptable coal indices to generate monthly Indonesian coal reference prices for about 62 types of coal including 8 types of bench mark qualities.
The regulation also requires miners to report sales volumes, prices, and buyers every month to the government, allowing it to ensure that the rules are being followed. Violations can lead to revocation of mining permits. The price benchmark aims to prevent firms selling coal to affiliates at low prices to avoid taxes that hurts Indonesia's efforts to collect revenues from its massive commodity exports.
Ministry of Energy and Mineral Resources of Indonesia has set the June 2011 Indonesian Coal Reference Price for thermal coal at US$ 119.03 per ton per ton, which was 1.20 percent higher than May 2011 price of US$ US$ 117.61. Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur (arb) 0.8%, Ash Content (arb) 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 – 30 June 2011.
Indonesian bituminous coal of 5,500 kcal/kg NAR was offered at between $ 108 - 110 a ton, FOB vessel basis this week, slightly up from last week price, traders said.
According to Indian power industry sources opined that Indian UMPPs ( ultra-mega power project) suddenly caught in between as the concept of UMPP was implemented 4 to 5 years back. The large scale industrial houses in India have bided and secured UMPP licenses based on the open market prices /long term coal contracts from Indonesian producers (I.e., pre regulated Indonesian market). Now that Indonesian coal reference price mechanism is in place all the UMPP's are seeking Indian government’s assistance in revising the Power Tariff of UMPP.
Now, the bankers who have funded the projects are bit worried about the rising Indonesian coal costs versus the power sales price which was pegged at pre-regulation prices, Indian banking industry sources said. Now, we need to see whether Indian Government allows the UMPPs to revise the power sale prices based on Indonesian coal reference price mechanism.
As such India cement and steel industries were used to buy coal from South Africa and Australia on index base pricing mechanism since last four to five years. in view of the attractive profit margin levels, entire Indonesian coal producers migrated to Index based pricing for coal contracts . “Where's still many of the Indian utilities and private consumers are still procuring the coal on firm delivered basis. This concept is creating lot of confusion in the Indian trade circles” an Indian trader commented.
77.12 percent of total coal exports in May goes to China, India, South Korea, Japan and Taiwan respectively.
The coal export information within this article is provided by coalspot.com on an "as is" and "as available” basis. All details about, given in good faith, without guarantee. While every care has been taken to ensure the accuracy of information furnished in this article. COALspot.com shall be obliged if errors / omissions are brought to its notice for carrying out corrections in this article.
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Monday, 18 March 24
THREE KEY TAKEAWAYS FROM OUR EUROPE GAS MARKETS SHORT-TERM OUTLOOK Q1 2024 - WOOD MACKENZIE
European gas prices are currently back to pre-crisis levels, but with a complex series of factors affecting future supply and demand, are they set ...
Wednesday, 06 March 24
INDONESIA AIMS TO FINISH MINING OUTPUT QUOTAS APPROVAL BY END-MARCH, OFFICIAL SAYS - REUTERS
Indonesia’s has approved the mining production quotarequests from more than 120mineral companies and aims to complete the approval process th ...
Monday, 04 March 24
IS YOUR GUARANTEE A GUARANTEE? NOTE TO SHIPOWNERS - GARD
KNOWLEDGE TO ELEVATE
The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the dif ...
Friday, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
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Showing 1 to 5 news of total 6843 |
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- Metalloyd Limited - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Economic Council, Georgia
- Samtan Co., Ltd - South Korea
- Altura Mining Limited, Indonesia
- Borneo Indobara - Indonesia
- International Coal Ventures Pvt Ltd - India
- MS Steel International - UAE
- Australian Commodity Traders Exchange
- Edison Trading Spa - Italy
- Makarim & Taira - Indonesia
- Kumho Petrochemical, South Korea
- Bayan Resources Tbk. - Indonesia
- Sojitz Corporation - Japan
- GVK Power & Infra Limited - India
- Savvy Resources Ltd - HongKong
- Coal and Oil Company - UAE
- Trasteel International SA, Italy
- Bukit Baiduri Energy - Indonesia
- Vedanta Resources Plc - India
- AsiaOL BioFuels Corp., Philippines
- Orica Mining Services - Indonesia
- PowerSource Philippines DevCo
- Sindya Power Generating Company Private Ltd
- Baramulti Group, Indonesia
- Independent Power Producers Association of India
- Vizag Seaport Private Limited - India
- Romanian Commodities Exchange
- Ministry of Finance - Indonesia
- Karaikal Port Pvt Ltd - India
- CNBM International Corporation - China
- Global Business Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Indian Oil Corporation Limited
- Bahari Cakrawala Sebuku - Indonesia
- Sarangani Energy Corporation, Philippines
- Siam City Cement - Thailand
- Bulk Trading Sa - Switzerland
- Commonwealth Bank - Australia
- Energy Link Ltd, New Zealand
- The University of Queensland
- Bharathi Cement Corporation - India
- Thiess Contractors Indonesia
- Eastern Coal Council - USA
- Meralco Power Generation, Philippines
- Indonesian Coal Mining Association
- Star Paper Mills Limited - India
- Sakthi Sugars Limited - India
- PTC India Limited - India
- Mjunction Services Limited - India
- Toyota Tsusho Corporation, Japan
- Kalimantan Lumbung Energi - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Bangladesh Power Developement Board
- Kapuas Tunggal Persada - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Jindal Steel & Power Ltd - India
- Siam City Cement PLC, Thailand
- The Treasury - Australian Government
- Global Green Power PLC Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Antam Resourcindo - Indonesia
- McConnell Dowell - Australia
- Coalindo Energy - Indonesia
- GMR Energy Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Mineral Development Corp Ltd - India
- Pendopo Energi Batubara - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Port Waratah Coal Services - Australia
- SMC Global Power, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Kaltim Prima Coal - Indonesia
- Jaiprakash Power Ventures ltd
- Electricity Generating Authority of Thailand
- Kohat Cement Company Ltd. - Pakistan
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Energy Development Corp, Philippines
- Maheswari Brothers Coal Limited - India
- The State Trading Corporation of India Ltd
- Globalindo Alam Lestari - Indonesia
- Ambuja Cements Ltd - India
- Merrill Lynch Commodities Europe
- Posco Energy - South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- ICICI Bank Limited - India
- Bhushan Steel Limited - India
- Sree Jayajothi Cements Limited - India
- New Zealand Coal & Carbon
- GAC Shipping (India) Pvt Ltd
- Price Waterhouse Coopers - Russia
- Africa Commodities Group - South Africa
- Standard Chartered Bank - UAE
- Sical Logistics Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aboitiz Power Corporation - Philippines
- Tata Chemicals Ltd - India
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Energy - Thailand
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Aditya Birla Group - India
- Riau Bara Harum - Indonesia
- South Luzon Thermal Energy Corporation
- Jorong Barutama Greston.PT - Indonesia
- Mintek Dendrill Indonesia
- Dalmia Cement Bharat India
- Meenaskhi Energy Private Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Mercator Lines Limited - India
- London Commodity Brokers - England
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Mines - Canada
- Offshore Bulk Terminal Pte Ltd, Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Singapore Mercantile Exchange
- European Bulk Services B.V. - Netherlands
- Gujarat Electricity Regulatory Commission - India
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Madhucon Powers Ltd - India
- TeaM Sual Corporation - Philippines
- Petron Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Binh Thuan Hamico - Vietnam
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- Miang Besar Coal Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining Corp, Philippines
- Indogreen Group - Indonesia
- Electricity Authority, New Zealand
- Australian Coal Association
- Interocean Group of Companies - India
- TNB Fuel Sdn Bhd - Malaysia
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Rashtriya Ispat Nigam Limited - India
- Xindia Steels Limited - India
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- Semirara Mining and Power Corporation, Philippines
- Agrawal Coal Company - India
- Iligan Light & Power Inc, Philippines
- Larsen & Toubro Limited - India
- PNOC Exploration Corporation - Philippines
- Chamber of Mines of South Africa
- Parry Sugars Refinery, India
- Alfred C Toepfer International GmbH - Germany
- Manunggal Multi Energi - Indonesia
- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- Deloitte Consulting - India
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Heidelberg Cement - Germany
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- Indika Energy - Indonesia
- Rio Tinto Coal - Australia
- Salva Resources Pvt Ltd - India
- VISA Power Limited - India
- Ministry of Transport, Egypt
- Simpson Spence & Young - Indonesia
- Indian Energy Exchange, India
- Karbindo Abesyapradhi - Indoneisa
- Essar Steel Hazira Ltd - India
- OPG Power Generation Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Anglo American - United Kingdom
- Gujarat Sidhee Cement - India
- Planning Commission, India
- Georgia Ports Authority, United States
- Wilmar Investment Holdings
- Chettinad Cement Corporation Ltd - India
- Indo Tambangraya Megah - Indonesia
- ASAPP Information Group - India
- Tamil Nadu electricity Board
- Ind-Barath Power Infra Limited - India
- San Jose City I Power Corp, Philippines
- Malabar Cements Ltd - India
- LBH Netherlands Bv - Netherlands
- SMG Consultants - Indonesia
- Renaissance Capital - South Africa
- India Bulls Power Limited - India
- Parliament of New Zealand
- Thai Mozambique Logistica
- Cement Manufacturers Association - India
- Uttam Galva Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Minerals Council of Australia
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Orica Australia Pty. Ltd.
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