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.
|
|
Friday, 26 October 12
DRY BULK MARKET FALLS ON WORRIES THAT RECENT RALLY WILL BE SHORTLIVED - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market retreated yesterday as a result of a plunge of the Capesize dry bulk carriers' segment, after their latest rally. As a result, ...
Tuesday, 23 October 12
INDONESIA SETS DMO FOR NEXT YEAR
COALspot.com - The Indonesian government has declared the quantity of coal to be supplied to domestic market in 2013 recently under DMO regulation. ...
Sunday, 21 October 12
BUMA HAS PRODUCED 25.0 MILLION TONS OF COAL YEAR TO DATE
COALspot.com - PT Delta Dunia Makmur Tbk., has removed 33.2 million bcm* (+5.5% YoY) of Overburden in September 2012 totaled while coal produc ...
Saturday, 20 October 12
SUPRAMAX FREIGHT EXPECTED TO BE FLAT - VISTAAR
COALspot.com - The shipping market continued to be quite active with quite lot of cargoes fixed for in the cape and panamax sector.
The BDI was ...
Thursday, 18 October 12
INDO-INDIA, LARGE ECO SUPRA FIXED AT USD 11000 - FEARNLEYS AS
Handy
Atlantic market remains quiet due to lack of cargoes and more supply of ships. Rates from Cont to East Med were around USD 14k and Black Sea ...
|
|
|
Showing 4531 to 4535 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Savvy Resources Ltd - HongKong
- Petrochimia International Co. Ltd.- Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kobexindo Tractors - Indoneisa
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- Sojitz Corporation - Japan
- Riau Bara Harum - Indonesia
- OPG Power Generation Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Xindia Steels Limited - India
- Metalloyd Limited - United Kingdom
- Grasim Industreis Ltd - India
- The University of Queensland
- Kohat Cement Company Ltd. - Pakistan
- Electricity Generating Authority of Thailand
- Cigading International Bulk Terminal - Indonesia
- Thiess Contractors Indonesia
- Iligan Light & Power Inc, Philippines
- Posco Energy - South Korea
- Miang Besar Coal Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Indogreen Group - Indonesia
- Global Green Power PLC Corporation, Philippines
- Oldendorff Carriers - Singapore
- Wood Mackenzie - Singapore
- New Zealand Coal & Carbon
- Coastal Gujarat Power Limited - India
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- Maharashtra Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Alfred C Toepfer International GmbH - Germany
- Therma Luzon, Inc, Philippines
- CIMB Investment Bank - Malaysia
- PowerSource Philippines DevCo
- Gujarat Mineral Development Corp Ltd - India
- South Luzon Thermal Energy Corporation
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Karbindo Abesyapradhi - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Cement Manufacturers Association - India
- Agrawal Coal Company - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- IEA Clean Coal Centre - UK
- Sical Logistics Limited - India
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Lanco Infratech Ltd - India
- Simpson Spence & Young - Indonesia
- SMC Global Power, Philippines
- Port Waratah Coal Services - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- Eastern Energy - Thailand
- IHS Mccloskey Coal Group - USA
- GN Power Mariveles Coal Plant, Philippines
- Kartika Selabumi Mining - Indonesia
- Marubeni Corporation - India
- Siam City Cement - Thailand
- Altura Mining Limited, Indonesia
- GAC Shipping (India) Pvt Ltd
- Kalimantan Lumbung Energi - Indonesia
- Central Electricity Authority - India
- Heidelberg Cement - Germany
- LBH Netherlands Bv - Netherlands
- Billiton Holdings Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- Kaltim Prima Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Bulk Trading Sa - Switzerland
- Madhucon Powers Ltd - India
- Attock Cement Pakistan Limited
- Africa Commodities Group - South Africa
- VISA Power Limited - India
- Bangladesh Power Developement Board
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement PLC, Thailand
- Borneo Indobara - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jindal Steel & Power Ltd - India
- Eastern Coal Council - USA
- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- Meralco Power Generation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- London Commodity Brokers - England
- Bharathi Cement Corporation - India
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Star Paper Mills Limited - India
- Baramulti Group, Indonesia
- Renaissance Capital - South Africa
- Ministry of Transport, Egypt
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Medco Energi Mining Internasional
- Standard Chartered Bank - UAE
- Ministry of Finance - Indonesia
- Global Coal Blending Company Limited - Australia
- Independent Power Producers Association of India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Orica Mining Services - Indonesia
- Parry Sugars Refinery, India
- The Treasury - Australian Government
- Bank of Tokyo Mitsubishi UFJ Ltd
- White Energy Company Limited
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Anglo American - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Energy Link Ltd, New Zealand
- Bayan Resources Tbk. - Indonesia
- GVK Power & Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- MS Steel International - UAE
- Wilmar Investment Holdings
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Indo Tambangraya Megah - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Indika Energy - Indonesia
- Latin American Coal - Colombia
- Bukit Makmur.PT - Indonesia
- Petron Corporation, Philippines
- India Bulls Power Limited - India
- GMR Energy Limited - India
- Uttam Galva Steels Limited - India
- Vizag Seaport Private Limited - India
- Economic Council, Georgia
- Intertek Mineral Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Planning Commission, India
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Mercuria Energy - Indonesia
- The State Trading Corporation of India Ltd
- Ind-Barath Power Infra Limited - India
- Commonwealth Bank - Australia
- Toyota Tsusho Corporation, Japan
- ICICI Bank Limited - India
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Barasentosa Lestari - Indonesia
- Australian Coal Association
- Gujarat Sidhee Cement - India
- Rio Tinto Coal - Australia
- CNBM International Corporation - China
- Salva Resources Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Chettinad Cement Corporation Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Coal and Oil Company - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- ASAPP Information Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Essar Steel Hazira Ltd - India
- Interocean Group of Companies - India
- Videocon Industries ltd - India
- Sarangani Energy Corporation, Philippines
- Makarim & Taira - Indonesia
- Georgia Ports Authority, United States
- Vijayanagar Sugar Pvt Ltd - India
- Mintek Dendrill Indonesia
- Aboitiz Power Corporation - Philippines
- Merrill Lynch Commodities Europe
- Kepco SPC Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- Sakthi Sugars Limited - India
- Straits Asia Resources Limited - Singapore
- Indian Oil Corporation Limited
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- Australian Commodity Traders Exchange
- Energy Development Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Ambuja Cements Ltd - India
- Electricity Authority, New Zealand
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- Semirara Mining Corp, Philippines
- Aditya Birla Group - India
- Indian Energy Exchange, India
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- Indonesian Coal Mining Association
- Antam Resourcindo - Indonesia
- Mjunction Services Limited - India
- Kumho Petrochemical, South Korea
- Bhoruka Overseas - Indonesia
|
| |
| |
|
