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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
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Monday, 04 June 12
MITRABAHTERA SUBSIDIARY SECURES CONTRACT FROM BERAU COAL - INSIDER STORIES
Insider Stories reported that, PT Mitra Alam Segara Sejati, a subsidiary that is 60% owned by PT Mitrabahtera Segara Sejati Tbk (MBSS), has secur ...
Sunday, 03 June 12
TTI ESTABLISHES COAL TRADING & MARKETING OFFICE
COALspot.com - TTI has officially established its coal trading, marketing-office in Jakarta, Indonesia. PT. Gunung Tinggi Coal is the TTI’s fi ...
Sunday, 03 June 12
FREIGHT MARKET CONTINUING ITS DECLINE
COALspot.com - The BDI continued to fall for the fifth straight week and the BDI fell by 2.57 pct this week closing at 904 points.
The Cape Size ...
Friday, 01 June 12
TNPL HAS SECURED 300K MT OF 6000 GAD COAL AT US$ 81 CNF TUTICORIN
COALspot.com - An India based coal trader Adani has offered the lowest price of US$ 81.00 per metric ton for calorific value of 6000 GAD and 15 perc ...
Friday, 01 June 12
COKAL ACCEPTED ON THE CLEAN AND CLEAR LIST FOR ITS BORNEO BARA PRIMA AND BUMI BARITO MINERAL PROJECTS
- Borneo Bara Prima (BBP) Project confirmed on the Clean and Clear List 9th May 2012
- Bumi Barito Mineral (BBM) Project confirmed on the Clean and ...
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Showing 4706 to 4710 news of total 6871 |
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Romanian Commodities Exchange
- Intertek Mineral Services - Indonesia
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- Globalindo Alam Lestari - Indonesia
- Agrawal Coal Company - India
- Parry Sugars Refinery, India
- MS Steel International - UAE
- Attock Cement Pakistan Limited
- Tata Chemicals Ltd - India
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Trasteel International SA, Italy
- Eastern Coal Council - USA
- Energy Link Ltd, New Zealand
- Ministry of Transport, Egypt
- Kartika Selabumi Mining - Indonesia
- Formosa Plastics Group - Taiwan
- Independent Power Producers Association of India
- Indian Energy Exchange, India
- CIMB Investment Bank - Malaysia
- Maheswari Brothers Coal Limited - India
- Karaikal Port Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Holcim Trading Pte Ltd - Singapore
- International Coal Ventures Pvt Ltd - India
- Wood Mackenzie - Singapore
- Ambuja Cements Ltd - India
- Coal and Oil Company - UAE
- Larsen & Toubro Limited - India
- Manunggal Multi Energi - Indonesia
- Kapuas Tunggal Persada - Indonesia
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Uttam Galva Steels Limited - India
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- Kumho Petrochemical, South Korea
- ASAPP Information Group - India
- Bhushan Steel Limited - India
- Siam City Cement - Thailand
- Merrill Lynch Commodities Europe
- Electricity Generating Authority of Thailand
- Iligan Light & Power Inc, Philippines
- Port Waratah Coal Services - Australia
- Bangladesh Power Developement Board
- The Treasury - Australian Government
- Parliament of New Zealand
- Toyota Tsusho Corporation, Japan
- Kideco Jaya Agung - Indonesia
- Kobexindo Tractors - Indoneisa
- Cement Manufacturers Association - India
- SMG Consultants - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- Global Business Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Indo Tambangraya Megah - Indonesia
- Mercator Lines Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Coalindo Energy - Indonesia
- Australian Coal Association
- Sical Logistics Limited - India
- Rashtriya Ispat Nigam Limited - India
- Leighton Contractors Pty Ltd - Australia
- Straits Asia Resources Limited - Singapore
- Australian Commodity Traders Exchange
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- South Luzon Thermal Energy Corporation
- Anglo American - United Kingdom
- Jaiprakash Power Ventures ltd
- Central Electricity Authority - India
- Sindya Power Generating Company Private Ltd
- Marubeni Corporation - India
- New Zealand Coal & Carbon
- Energy Development Corp, Philippines
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- Gujarat Sidhee Cement - India
- PNOC Exploration Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- The State Trading Corporation of India Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Meralco Power Generation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Ceylon Electricity Board - Sri Lanka
- SMC Global Power, Philippines
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- Deloitte Consulting - India
- Madhucon Powers Ltd - India
- Posco Energy - South Korea
- Altura Mining Limited, Indonesia
- Bharathi Cement Corporation - India
- CNBM International Corporation - China
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- GMR Energy Limited - India
- Planning Commission, India
- Petron Corporation, Philippines
- Indogreen Group - Indonesia
- Tamil Nadu electricity Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meenaskhi Energy Private Limited - India
- Bukit Baiduri Energy - Indonesia
- Central Java Power - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Dalmia Cement Bharat India
- Malabar Cements Ltd - India
- Sarangani Energy Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sree Jayajothi Cements Limited - India
- IHS Mccloskey Coal Group - USA
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- Thiess Contractors Indonesia
- Aboitiz Power Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Gujarat Electricity Regulatory Commission - India
- Savvy Resources Ltd - HongKong
- Bulk Trading Sa - Switzerland
- Borneo Indobara - Indonesia
- Binh Thuan Hamico - Vietnam
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- Mjunction Services Limited - India
- Global Green Power PLC Corporation, Philippines
- Vedanta Resources Plc - India
- GAC Shipping (India) Pvt Ltd
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- Goldman Sachs - Singapore
- Sojitz Corporation - Japan
- Economic Council, Georgia
- IEA Clean Coal Centre - UK
- Indonesian Coal Mining Association
- Riau Bara Harum - Indonesia
- Ministry of Finance - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Salva Resources Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Miang Besar Coal Terminal - Indonesia
- Power Finance Corporation Ltd., India
- VISA Power Limited - India
- ICICI Bank Limited - India
- Videocon Industries ltd - India
- Kalimantan Lumbung Energi - Indonesia
- TeaM Sual Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- OPG Power Generation Pvt Ltd - India
- Heidelberg Cement - Germany
- McConnell Dowell - Australia
- Kohat Cement Company Ltd. - Pakistan
- Makarim & Taira - Indonesia
- Edison Trading Spa - Italy
- Interocean Group of Companies - India
- European Bulk Services B.V. - Netherlands
- Antam Resourcindo - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- Renaissance Capital - South Africa
- Bhoruka Overseas - Indonesia
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- Indian Oil Corporation Limited
- Timah Investasi Mineral - Indoneisa
- Bayan Resources Tbk. - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Commonwealth Bank - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Krishnapatnam Port Company Ltd. - India
- Indika Energy - Indonesia
- Oldendorff Carriers - Singapore
- Kaltim Prima Coal - Indonesia
- Xindia Steels Limited - India
- Metalloyd Limited - United Kingdom
- Price Waterhouse Coopers - Russia
- Georgia Ports Authority, United States
- Aditya Birla Group - India
- Minerals Council of Australia
- Petrochimia International Co. Ltd.- Taiwan
- Kepco SPC Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- The University of Queensland
- White Energy Company Limited
- Chamber of Mines of South Africa
- Chettinad Cement Corporation Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Rio Tinto Coal - Australia
- Directorate General of MIneral and Coal - Indonesia
- Mintek Dendrill Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Medco Energi Mining Internasional
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining Corp, Philippines
- Barasentosa Lestari - Indonesia
- Lanco Infratech Ltd - India
- San Jose City I Power Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
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