We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 13 June 12
LOW COAL PRICES COULD CHANGE SUPPLY SIDE DYNAMICS - FITCH RATINGS
 Fitch Ratings believes that the weakness seen in thermal coal prices in recent months should reverse once demand from major importers recovers, although there is a risk low prices may persist into 2013, changing the industry's supply side dynamics.
The price of thermal coal (5,500 kcal coal at Newcastle Australia on a free-on-board basis) reached a two-year low of USD87 per metric ton in early June 2012, down from USD142/mt in January 2011. Major reasons for this decline include China's economic slowdown and high coal inventory levels, increased production and exports from Indonesia and Australia, and increased exports by US coal producers due to cheap natural gas displacing coal used in US power generation.
Fitch believes that prices can recover from current lows once demand from key importers - China and India - improves, and the supply side adjusts to reflect the price environment. India depends on coal as its major energy source and is increasingly relying on imported coal as it struggles to increase domestic production. Likewise in China, thermal coal fired power represents more than 70% of the country's energy needs; Fitch believes thermal coal demand from China will lift again post sufficient policy easing by the government, and continue rising over the medium-to-long term in line with the country's strong GDP growth outlook, albeit lower than previous years.
The weak pricing environment is exposing the business risks of high-cost coal producers, as coal prices fall near or below the marginal cost of production. Many Australian producers have high cash costs of production; such operators will be significantly affected if prices remain low for an extended period. At the same time, sustained low coal prices can shift buyers from low-rank coal to higher-grade coals and thus negatively affect both demand and realized prices for low-rank coal.
Fitch notes that many large coal producers have contracts in place with both volumes and prices fixed, typically for a period of one year; such contracts can account for a meaningful share of their total revenues - for example around 65% for Adaro Indonesia ('BB+'/Stable) and around 45% PT Indika Energy ('B+'/Positive). These operators would be insulated from a temporary weakening of coal prices to some extent. However, should low prices persist through 2012 and into 2013, it will negatively affect the prices they negotiate for 2013; such negotiations typically take place in Q4 and Q1 of each calendar year.
Should the current low price environment persist into 2013, Fitch expects high-cost producers in Australia and the US to undertake production cuts, and review expansion projects under consideration. Fitch also believes that production expansion plans by low-cost producing countries like Indonesia may be curtailed. Such actions would limit coal production levels (or growth) and help address oversupply.
In rating companies producing commodities, like coal, Fitch takes a through-the-cycle approach to its ratings; this factors in a reasonable level of rating headroom to accommodate weakening of coal prices. Cash cost of production and cash margins over an industry cycle are given a heavy emphasis and factored into the ratings. Hence, Fitch does not expect any immediate negative rating actions on its rated coal producers in the Asia-Pacific region.
Source: Fitch Ratings
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 27 November 12
NEWCASTLE PORT HAS SHIPPED 1.79 MILLION TONS OF COAL W/E 26 NOVEMBER
COALspot.com - Newcastle port in Australia has loaded 1,793,841 MT of thermal and coking coal for week ended 0700 hours 26 November 2012, Newc ...
Sunday, 25 November 12
INDONESIA TO INDIA SUPRAMAX FREIGHT RATES ARE EXPECTED TO BE FIRM - VISTAAR
COALspot.com - The freight market was buoyant this week with all sectors up except for the Cape size index. The BDI was up by 5.21 pct closing at 10 ...
Sunday, 25 November 12
INDONESIAN SUB BITUMINOUS COAL SWAP CONTRACTS SLIDE
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for February 2013 delivery lost 0.76percent WoW but gained 0.16 percent DoD on Friday ...
Saturday, 24 November 12
DELTA DUNIA MAKMUR PRODUCES 3.2 MILLION TONS OF COAL IN OCTOBER
COALspot.com - PT Delta Dunia Makmur Tbk., has removed 31.1 million bcm* (-4.0% YoY) of Overburden in October 2012 totaled while coal production was ...
Friday, 23 November 12
CHOOSING THE RIGHT TIME TO INVEST IN NEW VESSELS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Shipping is all about timing, a process often rising to the height of artform, as ship owners are having to pick the exact moment of selling most of ...
|
|
|
Showing 4486 to 4490 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Africa Commodities Group - South Africa
- Chamber of Mines of South Africa
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Aboitiz Power Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Bangladesh Power Developement Board
- New Zealand Coal & Carbon
- Energy Development Corp, Philippines
- Interocean Group of Companies - India
- Leighton Contractors Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- Central Electricity Authority - India
- Siam City Cement PLC, Thailand
- Straits Asia Resources Limited - Singapore
- Merrill Lynch Commodities Europe
- Central Java Power - Indonesia
- Parry Sugars Refinery, India
- Metalloyd Limited - United Kingdom
- Larsen & Toubro Limited - India
- PNOC Exploration Corporation - Philippines
- White Energy Company Limited
- Cigading International Bulk Terminal - Indonesia
- Madhucon Powers Ltd - India
- ASAPP Information Group - India
- Baramulti Group, Indonesia
- Port Waratah Coal Services - Australia
- Ministry of Transport, Egypt
- Kaltim Prima Coal - Indonesia
- Vizag Seaport Private Limited - India
- Bhushan Steel Limited - India
- Mjunction Services Limited - India
- Bukit Baiduri Energy - Indonesia
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Karbindo Abesyapradhi - Indoneisa
- Bukit Makmur.PT - Indonesia
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- Jaiprakash Power Ventures ltd
- European Bulk Services B.V. - Netherlands
- Agrawal Coal Company - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Goldman Sachs - Singapore
- Antam Resourcindo - Indonesia
- Mercator Lines Limited - India
- Coalindo Energy - Indonesia
- Australian Coal Association
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Makarim & Taira - Indonesia
- Bharathi Cement Corporation - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Vedanta Resources Plc - India
- TNB Fuel Sdn Bhd - Malaysia
- Romanian Commodities Exchange
- ICICI Bank Limited - India
- Tata Chemicals Ltd - India
- OPG Power Generation Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- Kartika Selabumi Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- San Jose City I Power Corp, Philippines
- Rio Tinto Coal - Australia
- Global Coal Blending Company Limited - Australia
- Kumho Petrochemical, South Korea
- The State Trading Corporation of India Ltd
- Riau Bara Harum - Indonesia
- Energy Link Ltd, New Zealand
- The University of Queensland
- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- McConnell Dowell - Australia
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Eastern Coal Council - USA
- Latin American Coal - Colombia
- Indika Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Indonesian Coal Mining Association
- Indian Energy Exchange, India
- Kepco SPC Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- Marubeni Corporation - India
- SMG Consultants - Indonesia
- Barasentosa Lestari - Indonesia
- Pendopo Energi Batubara - Indonesia
- Indogreen Group - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Simpson Spence & Young - Indonesia
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Thiess Contractors Indonesia
- Rashtriya Ispat Nigam Limited - India
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Iligan Light & Power Inc, Philippines
- Maheswari Brothers Coal Limited - India
- South Luzon Thermal Energy Corporation
- Ministry of Finance - Indonesia
- Anglo American - United Kingdom
- Edison Trading Spa - Italy
- Electricity Authority, New Zealand
- Mercuria Energy - Indonesia
- VISA Power Limited - India
- Malabar Cements Ltd - India
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- Minerals Council of Australia
- Planning Commission, India
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Maharashtra Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Petrochimia International Co. Ltd.- Taiwan
- Intertek Mineral Services - Indonesia
- Bulk Trading Sa - Switzerland
- Kohat Cement Company Ltd. - Pakistan
- PowerSource Philippines DevCo
- Bahari Cakrawala Sebuku - Indonesia
- Sojitz Corporation - Japan
- Carbofer General Trading SA - India
- AsiaOL BioFuels Corp., Philippines
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Salva Resources Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Holcim Trading Pte Ltd - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Altura Mining Limited, Indonesia
- Indian Oil Corporation Limited
- GVK Power & Infra Limited - India
- London Commodity Brokers - England
- Parliament of New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Orica Mining Services - Indonesia
- Sree Jayajothi Cements Limited - India
- Miang Besar Coal Terminal - Indonesia
- Cement Manufacturers Association - India
- Borneo Indobara - Indonesia
- Jindal Steel & Power Ltd - India
- SMC Global Power, Philippines
- Ambuja Cements Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Tamil Nadu electricity Board
- Grasim Industreis Ltd - India
- Commonwealth Bank - Australia
- Georgia Ports Authority, United States
- Renaissance Capital - South Africa
- Essar Steel Hazira Ltd - India
- Deloitte Consulting - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Sidhee Cement - India
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Sinarmas Energy and Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Global Green Power PLC Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karaikal Port Pvt Ltd - India
- Wood Mackenzie - Singapore
- Alfred C Toepfer International GmbH - Germany
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Coal and Oil Company - UAE
- Singapore Mercantile Exchange
- Posco Energy - South Korea
- Neyveli Lignite Corporation Ltd, - India
- Electricity Generating Authority of Thailand
- Videocon Industries ltd - India
- Ministry of Mines - Canada
- LBH Netherlands Bv - Netherlands
- Dalmia Cement Bharat India
- MS Steel International - UAE
- Kobexindo Tractors - Indoneisa
- Binh Thuan Hamico - Vietnam
- International Coal Ventures Pvt Ltd - India
- Eastern Energy - Thailand
- Sical Logistics Limited - India
- Standard Chartered Bank - UAE
- Bhatia International Limited - India
- Savvy Resources Ltd - HongKong
- Economic Council, Georgia
- Formosa Plastics Group - Taiwan
- Aditya Birla Group - India
- IEA Clean Coal Centre - UK
- Bhoruka Overseas - Indonesia
- PTC India Limited - India
- Oldendorff Carriers - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Commodity Traders Exchange
- Pipit Mutiara Jaya. PT, Indonesia
|
| |
| |
|
