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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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Thursday, 15 July 10
IRON ORE PRICING MECHANISMS PUT ON THE SPOT
THE new iron ore pricing mechanisms that killed off the annual benchmark system are coming under pressure. The spot price of the steel feed has fall ...
Thursday, 15 July 10
NTPC TO PURSUE COAL MINE ACQUISITION IN AUSTRALIA, INDONESIA - BUSINESS STANDARD
Business-Standard reported that, NTPC, the India’s largest power producer, has set the ball rolling to acquire coal mines or form joint ventur ...
Wednesday, 14 July 10
SUCCESSFUL COMMISSIONING OF GTLE LOW RANK COAL UPGRADING PLANT
COALspot.com: GTL Energy Ltd (GTL Energy) announced that construction and commissioning of its proprietary ‘first-of-a-kind’, low rank c ...
Tuesday, 13 July 10
BUMI TO PRODUCE MORE THAN 67 MILLION TONS OF COAL IN 2010
COALspot.com: Bumi resources, Indonesia’s largest coal producer has previewed its operating results in KPC/Arutmin for Jan – Jun 2010. A ...
Tuesday, 13 July 10
FURTHER LOSSES FOR BALTIC DRY INDEX ON HIGH VESSEL SUPPLY
The dry bulk market can’t catch a breath, as it has now entered the 7th straight week of losses. The industry’s benchmark, the Baltic Dr ...
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- Essar Steel Hazira Ltd - India
- Wood Mackenzie - Singapore
- Antam Resourcindo - Indonesia
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- Commonwealth Bank - Australia
- Petron Corporation, Philippines
- Merrill Lynch Commodities Europe
- Eastern Coal Council - USA
- Australian Commodity Traders Exchange
- Baramulti Group, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Sojitz Corporation - Japan
- Formosa Plastics Group - Taiwan
- Kepco SPC Power Corporation, Philippines
- London Commodity Brokers - England
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- Holcim Trading Pte Ltd - Singapore
- Intertek Mineral Services - Indonesia
- Romanian Commodities Exchange
- Meenaskhi Energy Private Limited - India
- Indogreen Group - Indonesia
- Malabar Cements Ltd - India
- Banpu Public Company Limited - Thailand
- Bharathi Cement Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Oldendorff Carriers - Singapore
- Aboitiz Power Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Ministry of Transport, Egypt
- International Coal Ventures Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Renaissance Capital - South Africa
- Price Waterhouse Coopers - Russia
- Independent Power Producers Association of India
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- Uttam Galva Steels Limited - India
- Dalmia Cement Bharat India
- Manunggal Multi Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Parry Sugars Refinery, India
- Anglo American - United Kingdom
- Binh Thuan Hamico - Vietnam
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Gujarat Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- Indian Energy Exchange, India
- European Bulk Services B.V. - Netherlands
- Star Paper Mills Limited - India
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Thiess Contractors Indonesia
- TeaM Sual Corporation - Philippines
- Standard Chartered Bank - UAE
- Sree Jayajothi Cements Limited - India
- Coalindo Energy - Indonesia
- Lanco Infratech Ltd - India
- Vedanta Resources Plc - India
- Globalindo Alam Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Heidelberg Cement - Germany
- Bulk Trading Sa - Switzerland
- Edison Trading Spa - Italy
- Gujarat Mineral Development Corp Ltd - India
- Larsen & Toubro Limited - India
- CIMB Investment Bank - Malaysia
- Bukit Baiduri Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Neyveli Lignite Corporation Ltd, - India
- Therma Luzon, Inc, Philippines
- Barasentosa Lestari - Indonesia
- Mercator Lines Limited - India
- Siam City Cement PLC, Thailand
- Karaikal Port Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- Energy Link Ltd, New Zealand
- Sindya Power Generating Company Private Ltd
- Indo Tambangraya Megah - Indonesia
- Mercuria Energy - Indonesia
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- Economic Council, Georgia
- Ministry of Mines - Canada
- OPG Power Generation Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- Medco Energi Mining Internasional
- ASAPP Information Group - India
- Posco Energy - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- Borneo Indobara - Indonesia
- Tamil Nadu electricity Board
- Kartika Selabumi Mining - Indonesia
- Meralco Power Generation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Mjunction Services Limited - India
- Australian Coal Association
- Power Finance Corporation Ltd., India
- GVK Power & Infra Limited - India
- Rio Tinto Coal - Australia
- Bangladesh Power Developement Board
- The University of Queensland
- Kumho Petrochemical, South Korea
- Latin American Coal - Colombia
- Bayan Resources Tbk. - Indonesia
- Savvy Resources Ltd - HongKong
- Marubeni Corporation - India
- Chettinad Cement Corporation Ltd - India
- Electricity Generating Authority of Thailand
- Global Business Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- South Luzon Thermal Energy Corporation
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- White Energy Company Limited
- GAC Shipping (India) Pvt Ltd
- Kohat Cement Company Ltd. - Pakistan
- McConnell Dowell - Australia
- SMG Consultants - Indonesia
- Minerals Council of Australia
- Directorate Of Revenue Intelligence - India
- Metalloyd Limited - United Kingdom
- Sical Logistics Limited - India
- Toyota Tsusho Corporation, Japan
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Parliament of New Zealand
- Offshore Bulk Terminal Pte Ltd, Singapore
- IHS Mccloskey Coal Group - USA
- Eastern Energy - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Planning Commission, India
- PetroVietnam Power Coal Import and Supply Company
- Attock Cement Pakistan Limited
- VISA Power Limited - India
- Simpson Spence & Young - Indonesia
- Bhoruka Overseas - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Orica Mining Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Madhucon Powers Ltd - India
- Indonesian Coal Mining Association
- Bukit Asam (Persero) Tbk - Indonesia
- Georgia Ports Authority, United States
- Vizag Seaport Private Limited - India
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- Energy Development Corp, Philippines
- Global Coal Blending Company Limited - Australia
- LBH Netherlands Bv - Netherlands
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Siam City Cement - Thailand
- Jorong Barutama Greston.PT - Indonesia
- Orica Australia Pty. Ltd.
- Maharashtra Electricity Regulatory Commission - India
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Africa Commodities Group - South Africa
- Mintek Dendrill Indonesia
- Agrawal Coal Company - India
- Pipit Mutiara Jaya. PT, Indonesia
- ICICI Bank Limited - India
- Videocon Industries ltd - India
- Semirara Mining and Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining Corp, Philippines
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- The Treasury - Australian Government
- MS Steel International - UAE
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Kapuas Tunggal Persada - Indonesia
- Ministry of Finance - Indonesia
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
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