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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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Thursday, 28 January 10
COAL - VIETNAM / TRADE
Vietnam expects to turn into a coal importer within three years, spurred by an industrial boom and rising power consumption, a senior executive with ...
Thursday, 28 January 10
JAPAN STEELMAKERS OPPOSE QUARTERLY COAL CONTRACTS
Japanese steelmakers oppose miner BHP Billiton's attempt to switch to quarterly contracts from annual deals for supplying coal, as the change would ...
Thursday, 28 January 10
BHP MAY SELL 25% STAKE IN INDONESIAN COAL PROJECT
BHP Billiton Ltd. plans to sell only a 25 percent stake in a coal project in Indonesia as it wants to retain control of the asset, said Indra Dianna ...
Thursday, 28 January 10
TRANSNET ASPIRES TO 81MT/Y COAL EXPORT CAPACITY
South African State-owned rail transport enterprise Transnet wants to increase coal-line rail capacity to 81-million tons a year as part of its Quan ...
Wednesday, 27 January 10
ASIA'S 2010 STEAM COAL IMPORTS TO REACH 460 MLN T
* China to import up to 100 mln T of steam coal in 2010
* China, India seen investing in southern Africa assets
Asian imports of steam coal will ...
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- Singapore Mercantile Exchange
- Cement Manufacturers Association - India
- Metalloyd Limited - United Kingdom
- Bhoruka Overseas - Indonesia
- Mintek Dendrill Indonesia
- Energy Development Corp, Philippines
- Orica Australia Pty. Ltd.
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- Binh Thuan Hamico - Vietnam
- Central Java Power - Indonesia
- Essar Steel Hazira Ltd - India
- Manunggal Multi Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Coal and Oil Company - UAE
- Vijayanagar Sugar Pvt Ltd - India
- Thiess Contractors Indonesia
- Simpson Spence & Young - Indonesia
- CNBM International Corporation - China
- PTC India Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Lanco Infratech Ltd - India
- Bayan Resources Tbk. - Indonesia
- Maheswari Brothers Coal Limited - India
- IEA Clean Coal Centre - UK
- Timah Investasi Mineral - Indoneisa
- Star Paper Mills Limited - India
- Tamil Nadu electricity Board
- Samtan Co., Ltd - South Korea
- The University of Queensland
- Bukit Asam (Persero) Tbk - Indonesia
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Holcim Trading Pte Ltd - Singapore
- London Commodity Brokers - England
- Siam City Cement PLC, Thailand
- Vizag Seaport Private Limited - India
- Goldman Sachs - Singapore
- International Coal Ventures Pvt Ltd - India
- Romanian Commodities Exchange
- Ministry of Mines - Canada
- Mercuria Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Parry Sugars Refinery, India
- Economic Council, Georgia
- Grasim Industreis Ltd - India
- Eastern Energy - Thailand
- Kepco SPC Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- Anglo American - United Kingdom
- Meenaskhi Energy Private Limited - India
- Riau Bara Harum - Indonesia
- GMR Energy Limited - India
- AsiaOL BioFuels Corp., Philippines
- Bharathi Cement Corporation - India
- Sinarmas Energy and Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Standard Chartered Bank - UAE
- New Zealand Coal & Carbon
- Sree Jayajothi Cements Limited - India
- Global Business Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- CIMB Investment Bank - Malaysia
- Marubeni Corporation - India
- Agrawal Coal Company - India
- Heidelberg Cement - Germany
- Aditya Birla Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Independent Power Producers Association of India
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- Mercator Lines Limited - India
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- Intertek Mineral Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Karbindo Abesyapradhi - Indoneisa
- Sojitz Corporation - Japan
- Kaltim Prima Coal - Indonesia
- Xindia Steels Limited - India
- Malabar Cements Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Wilmar Investment Holdings
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Bhushan Steel Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- Eastern Coal Council - USA
- Ministry of Transport, Egypt
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Central Electricity Authority - India
- Gujarat Electricity Regulatory Commission - India
- Chettinad Cement Corporation Ltd - India
- San Jose City I Power Corp, Philippines
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- Georgia Ports Authority, United States
- Medco Energi Mining Internasional
- Altura Mining Limited, Indonesia
- Indonesian Coal Mining Association
- Bhatia International Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Carbofer General Trading SA - India
- Baramulti Group, Indonesia
- Toyota Tsusho Corporation, Japan
- Coastal Gujarat Power Limited - India
- Cigading International Bulk Terminal - Indonesia
- McConnell Dowell - Australia
- Savvy Resources Ltd - HongKong
- Latin American Coal - Colombia
- Ceylon Electricity Board - Sri Lanka
- South Luzon Thermal Energy Corporation
- Indo Tambangraya Megah - Indonesia
- Tata Chemicals Ltd - India
- Sarangani Energy Corporation, Philippines
- GVK Power & Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Deloitte Consulting - India
- White Energy Company Limited
- Ambuja Cements Ltd - India
- Edison Trading Spa - Italy
- Africa Commodities Group - South Africa
- Oldendorff Carriers - Singapore
- IHS Mccloskey Coal Group - USA
- Aboitiz Power Corporation - Philippines
- Sakthi Sugars Limited - India
- Meralco Power Generation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Borneo Indobara - Indonesia
- Jaiprakash Power Ventures ltd
- Indogreen Group - Indonesia
- Minerals Council of Australia
- Interocean Group of Companies - India
- Siam City Cement - Thailand
- Energy Link Ltd, New Zealand
- Posco Energy - South Korea
- SMC Global Power, Philippines
- LBH Netherlands Bv - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Indian Energy Exchange, India
- Trasteel International SA, Italy
- Banpu Public Company Limited - Thailand
- Orica Mining Services - Indonesia
- Price Waterhouse Coopers - Russia
- Maharashtra Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Krishnapatnam Port Company Ltd. - India
- Jorong Barutama Greston.PT - Indonesia
- Mjunction Services Limited - India
- India Bulls Power Limited - India
- Chamber of Mines of South Africa
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Finance - Indonesia
- Attock Cement Pakistan Limited
- Kartika Selabumi Mining - Indonesia
- Formosa Plastics Group - Taiwan
- Sical Logistics Limited - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- Planning Commission, India
- Kalimantan Lumbung Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Petron Corporation, Philippines
- Port Waratah Coal Services - Australia
- GN Power Mariveles Coal Plant, Philippines
- Videocon Industries ltd - India
- Merrill Lynch Commodities Europe
- PNOC Exploration Corporation - Philippines
- Uttam Galva Steels Limited - India
- Rio Tinto Coal - Australia
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- Neyveli Lignite Corporation Ltd, - India
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Gujarat Sidhee Cement - India
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
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