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Sunday, 28 March 10
DEMAND FROM INDIA RESHAPING THE GLOBAL COAL MARKET - DAVE FOREST
 Attention international coal industry. There's a new kid on the block.
The nation of India.
India is emerging as a major re-shaping force for the global coal market. With in-country coal supplies flagging, Indian buyers are increasingly turning to imports to meet demand.
The situation at many of the nation's power plants is dire. The federal Central Electricity Authority monitors coal stockpiles at 79 plants throughout India. As of yesterday, 19 of those plants (25%) were running at "critical" levels, with less than 7 days worth of coal on hand.
In fact, 9 of those plants are operating with less than 4 days of coal supply. Meaning that 11% of national generating capacity is teetering on the edge of shutdown. These plants are completely reliant on new coal deliveries. If coal shipping is disrupted for any reason, there's no back-up.
There are a few factors at play here. Firstly, India's coal production is lagging demand. Due to fixed government pricing that makes it difficult for coal miners to turn a profit. There's simply not much economic incentive to build new mines (although the government is trying to horse-whip producers into increasing output, even at low prices.)
The other problem is that India's coal-producing regions are distant from many of the electricity demand centers, especially along the coast. Bottlenecks in rail transport make it difficult to get coal to many of the power plants that need supply most.
A clear solution seems to be emerging amongst many of India's biggest coal buyers. Go international.
Yesterday, Maharashtra State Power Generation Co. (the firm that supplies power to Mumbai, among other places) announced it will seek to import 3.35 million tons of thermal coal in the year beginning April 1.
This is a big jump in Maharashtra's foreign coal use. Up 40% from the 2.4 million tons imported in the year ended March 31.
The company's managing director Subrat Ratho made it clear this is a decision coming from the highest levels in India. As he noted, "We would like to import as little as we can because overseas coal is six-times more expensive than Indian coal. But it appears the Ministry of Power has made an assessment of how much coal the domestic companies will be able to supply to various states and have given us this target."
The decision is changing the face of coal imports across the country. India's thermal coal imports surged 100% in 2009, to 60 million tons. Up from just 30 million tons in 2008.
With India's focus now shifting to coal imports, a question is arising. Where will this international supply come from?
Nations like China and Japan have been competing hard for years to secure coal supplies in many of the world's richest regions like Indonesia and Australia. Being late to the party, India is now making its own push to capture supplies. By going forth and buying mines.
Last year, the Indian government gave explicit instructions to many of the nation's largest coal companies to buy overseas coal mines in the interest of nailing down import supply.
One such acquisition materialized this week, with major coal miner and power plant operator Essar Group announcing its purchase of the Aries coal mine in East Kalimantan, Indonesia. The project is reported to hold 100 million tons of thermal coal.
This follows on the heels of Essar's recently-announced $600 million purchase of West Virginia's Trinity Coal Corp. Signaling that Essar (and other groups like it) are moving fast to secure coal assets globally.
The coal industry is already a crowded space, with several nations competing for imports and to buy mines. The sudden addition of an aggressive and deep-pocketed buyer like India could end up being like trying to drive a bulldozer through a mousehole. Putting upward pressure on both coal trade prices and the price tag for purchasing deposits.
We saw this movie once before in 2005 when China turned from a net exporter of coal to a net importer. Prices soared and coal producers had a great run in the stock market.
India may be the only other nation on the planet with the ability to do same.
Source: OilPrice
Dave Forest, dforest@piercepoints.com, www.piercepoints.com
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Friday, 16 April 10
KRISHNAPATNAM PORT IS IRONING ITS WAY INTO RECORD BOOKS
COALspot.com: Krishnapatnam Port achieved a new benchmark by loading 60,021 MT of Iron Ore fines in just 24 hrs surpassing its previous record of 54 ...
Friday, 16 April 10
RBCT COAL DISPUTE RESOLVED - MININGMX
Miningmx reported that, the long-simmering spat over the coal allocation for producers who will use the expanded facilities at Richards Bay Coal Ter ...
Friday, 16 April 10
COAL INDIA SELECTS MERCHANT BANKERS TO ACQUIRE OVERSEAS ASSETS -THE HINDU
An investment of about $1.8 billion is expected to be made in these deals
The Hindu reported that, Bank of America-Merill Lynch, Royal Bank of Sc ...
Thursday, 15 April 10
MAJOR THERMAL COAL CONTRACT AT 40% HIGHER PRICE THAN LAST YEAR - BUSINESS STANDARD
Business-Standard reported that, India is expected to import nearly 60 million tonnes of thermal coal this year.
After coking coal and iron ...
Thursday, 15 April 10
RICHARDS BAY ROUNDS BACK TO INDIA SUPRAS WERE FIXED AT MID 20'S
Handy
The BSI remains in a positive momentum and the Atlantic remains unchanged from last week. Fronthaul grain is active which is keeping ballast ...
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- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- Leighton Contractors Pty Ltd - Australia
- Heidelberg Cement - Germany
- Bhatia International Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- White Energy Company Limited
- Makarim & Taira - Indonesia
- Indonesian Coal Mining Association
- GAC Shipping (India) Pvt Ltd
- Timah Investasi Mineral - Indoneisa
- Orica Australia Pty. Ltd.
- Globalindo Alam Lestari - Indonesia
- Vizag Seaport Private Limited - India
- IEA Clean Coal Centre - UK
- GN Power Mariveles Coal Plant, Philippines
- McConnell Dowell - Australia
- Semirara Mining and Power Corporation, Philippines
- ICICI Bank Limited - India
- Carbofer General Trading SA - India
- Orica Mining Services - Indonesia
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- Thai Mozambique Logistica
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Mjunction Services Limited - India
- TeaM Sual Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Star Paper Mills Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Indogreen Group - Indonesia
- Maheswari Brothers Coal Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Savvy Resources Ltd - HongKong
- Madhucon Powers Ltd - India
- London Commodity Brokers - England
- TNB Fuel Sdn Bhd - Malaysia
- CNBM International Corporation - China
- Wilmar Investment Holdings
- Ceylon Electricity Board - Sri Lanka
- Jindal Steel & Power Ltd - India
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- Power Finance Corporation Ltd., India
- Singapore Mercantile Exchange
- SMC Global Power, Philippines
- LBH Netherlands Bv - Netherlands
- Minerals Council of Australia
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Parry Sugars Refinery, India
- Grasim Industreis Ltd - India
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Formosa Plastics Group - Taiwan
- Bayan Resources Tbk. - Indonesia
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- OPG Power Generation Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- MS Steel International - UAE
- Coastal Gujarat Power Limited - India
- Therma Luzon, Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Georgia Ports Authority, United States
- The University of Queensland
- Indika Energy - Indonesia
- Africa Commodities Group - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Sinarmas Energy and Mining - Indonesia
- GVK Power & Infra Limited - India
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- Bulk Trading Sa - Switzerland
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Banpu Public Company Limited - Thailand
- Kepco SPC Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Bangladesh Power Developement Board
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
- Petron Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Antam Resourcindo - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Riau Bara Harum - Indonesia
- Krishnapatnam Port Company Ltd. - India
- San Jose City I Power Corp, Philippines
- Posco Energy - South Korea
- Siam City Cement PLC, Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Independent Power Producers Association of India
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- Global Coal Blending Company Limited - Australia
- South Luzon Thermal Energy Corporation
- Tata Chemicals Ltd - India
- GMR Energy Limited - India
- Salva Resources Pvt Ltd - India
- Attock Cement Pakistan Limited
- Ministry of Mines - Canada
- Holcim Trading Pte Ltd - Singapore
- Kobexindo Tractors - Indoneisa
- Port Waratah Coal Services - Australia
- Parliament of New Zealand
- CIMB Investment Bank - Malaysia
- Sical Logistics Limited - India
- Edison Trading Spa - Italy
- Electricity Authority, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- Latin American Coal - Colombia
- Uttam Galva Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Eastern Energy - Thailand
- Vedanta Resources Plc - India
- Malabar Cements Ltd - India
- Cement Manufacturers Association - India
- Thiess Contractors Indonesia
- Kaltim Prima Coal - Indonesia
- Kumho Petrochemical, South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- Sakthi Sugars Limited - India
- Dalmia Cement Bharat India
- Energy Development Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Central Electricity Authority - India
- European Bulk Services B.V. - Netherlands
- PNOC Exploration Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Chamber of Mines of South Africa
- Bukit Baiduri Energy - Indonesia
- Wood Mackenzie - Singapore
- Metalloyd Limited - United Kingdom
- Manunggal Multi Energi - Indonesia
- Gujarat Sidhee Cement - India
- Altura Mining Limited, Indonesia
- Anglo American - United Kingdom
- Deloitte Consulting - India
- Siam City Cement - Thailand
- Larsen & Toubro Limited - India
- The Treasury - Australian Government
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Interocean Group of Companies - India
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- Borneo Indobara - Indonesia
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Central Java Power - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- Economic Council, Georgia
- Coalindo Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Merrill Lynch Commodities Europe
- Xindia Steels Limited - India
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
- India Bulls Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- International Coal Ventures Pvt Ltd - India
- Mercuria Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Samtan Co., Ltd - South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Intertek Mineral Services - Indonesia
- PTC India Limited - India
- Global Business Power Corporation, Philippines
- Eastern Coal Council - USA
- Bhushan Steel Limited - India
- Indian Oil Corporation Limited
- Meralco Power Generation, Philippines
- Kideco Jaya Agung - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Sojitz Corporation - Japan
- Renaissance Capital - South Africa
- Rio Tinto Coal - Australia
- Kohat Cement Company Ltd. - Pakistan
- PetroVietnam Power Coal Import and Supply Company
- Indian Energy Exchange, India
- Price Waterhouse Coopers - Russia
- Semirara Mining Corp, Philippines
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