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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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Friday, 18 May 12
KOREA EAST WEST POWER LOOKING FOR TOTAL 2.6 MILLION TONS OF 4600 NAR COAL AT FIXED PRICE FOR 5 YEARS
COALspot.com - Korea East West Power Co., Ltd is inviting bids to supply of 520,000 Metric Tons (per annum) of minimum 4,600 kcal/kg coal of N ...
Friday, 18 May 12
NICKEL ORE CARGOES ARE NOT SEEN IN MARKET ANYMORE DUE TO ON-GOING INDONESIAN BAN - FEARNLEYS AS
Handy
The market remained variable.
Fronthaul voyages both from Baltic and Black Sea paid over USD 18k/day. From USG to Cont tonnage would get ...
Thursday, 17 May 12
COAL MINERS OPPOSE EXPORT TAX, SUGGEST OUTPUT QUOTA - THE JAKARTA POST
The Jakarta Post reported that, coal miners have suggested that the government apply a production quota instead of implementing an export tax in ord ...
Thursday, 17 May 12
DRY BULK MARKET STILL LOOKING FOR NEW DIRECTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept on moving sideways during this week, with the mixed performance across all segments. Yesterday, the industry’s be ...
Tuesday, 15 May 12
POTENTIAL BOOM OF CHINAS COAL IMPORTS COULD PROVIDE FURTHER SUPPORT TO DRY BULK MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has been moving sideways during the past week with the industry’s benchmark, the Baltic Dry Index (BDI) losing 0.53% on th ...
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Showing 4726 to 4730 news of total 6871 |
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- Orica Mining Services - Indonesia
- Attock Cement Pakistan Limited
- Therma Luzon, Inc, Philippines
- Energy Link Ltd, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Africa Commodities Group - South Africa
- Rashtriya Ispat Nigam Limited - India
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- Straits Asia Resources Limited - Singapore
- Uttam Galva Steels Limited - India
- Alfred C Toepfer International GmbH - Germany
- Mercator Lines Limited - India
- Chettinad Cement Corporation Ltd - India
- Anglo American - United Kingdom
- Sical Logistics Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Mercuria Energy - Indonesia
- ICICI Bank Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Ambuja Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Sarangani Energy Corporation, Philippines
- Carbofer General Trading SA - India
- Kobexindo Tractors - Indoneisa
- Power Finance Corporation Ltd., India
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Central Java Power - Indonesia
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Economic Council, Georgia
- Bukit Asam (Persero) Tbk - Indonesia
- Baramulti Group, Indonesia
- Coal and Oil Company - UAE
- Maheswari Brothers Coal Limited - India
- Ind-Barath Power Infra Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Krishnapatnam Port Company Ltd. - India
- Sindya Power Generating Company Private Ltd
- Kideco Jaya Agung - Indonesia
- CIMB Investment Bank - Malaysia
- Bharathi Cement Corporation - India
- India Bulls Power Limited - India
- Parliament of New Zealand
- Indogreen Group - Indonesia
- Thai Mozambique Logistica
- Rio Tinto Coal - Australia
- Asmin Koalindo Tuhup - Indonesia
- Indian Energy Exchange, India
- Australian Commodity Traders Exchange
- Merrill Lynch Commodities Europe
- Star Paper Mills Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Maharashtra Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- MS Steel International - UAE
- Malabar Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- Cigading International Bulk Terminal - Indonesia
- GAC Shipping (India) Pvt Ltd
- SN Aboitiz Power Inc, Philippines
- PowerSource Philippines DevCo
- LBH Netherlands Bv - Netherlands
- London Commodity Brokers - England
- Ministry of Mines - Canada
- Gujarat Sidhee Cement - India
- International Coal Ventures Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- New Zealand Coal & Carbon
- Bhushan Steel Limited - India
- Bulk Trading Sa - Switzerland
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Trasteel International SA, Italy
- Bhoruka Overseas - Indonesia
- Vedanta Resources Plc - India
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- Ministry of Finance - Indonesia
- Manunggal Multi Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Iligan Light & Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Price Waterhouse Coopers - Russia
- Thiess Contractors Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Energy Development Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Medco Energi Mining Internasional
- Goldman Sachs - Singapore
- Australian Coal Association
- Mintek Dendrill Indonesia
- OPG Power Generation Pvt Ltd - India
- Sojitz Corporation - Japan
- Karaikal Port Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Samtan Co., Ltd - South Korea
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Xindia Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- Interocean Group of Companies - India
- Grasim Industreis Ltd - India
- Holcim Trading Pte Ltd - Singapore
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kepco SPC Power Corporation, Philippines
- CNBM International Corporation - China
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Dalmia Cement Bharat India
- Meenaskhi Energy Private Limited - India
- Semirara Mining Corp, Philippines
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Agrawal Coal Company - India
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Electricity Generating Authority of Thailand
- Wilmar Investment Holdings
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Planning Commission, India
- Jorong Barutama Greston.PT - Indonesia
- Sakthi Sugars Limited - India
- Binh Thuan Hamico - Vietnam
- Sree Jayajothi Cements Limited - India
- Standard Chartered Bank - UAE
- Bukit Makmur.PT - Indonesia
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Riau Bara Harum - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Simpson Spence & Young - Indonesia
- Toyota Tsusho Corporation, Japan
- Petron Corporation, Philippines
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- Meralco Power Generation, Philippines
- Madhucon Powers Ltd - India
- Coalindo Energy - Indonesia
- Posco Energy - South Korea
- Formosa Plastics Group - Taiwan
- Timah Investasi Mineral - Indoneisa
- Minerals Council of Australia
- Georgia Ports Authority, United States
- GN Power Mariveles Coal Plant, Philippines
- Global Coal Blending Company Limited - Australia
- The Treasury - Australian Government
- Bhatia International Limited - India
- Tamil Nadu electricity Board
- San Jose City I Power Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Ministry of Transport, Egypt
- Jindal Steel & Power Ltd - India
- VISA Power Limited - India
- McConnell Dowell - Australia
- White Energy Company Limited
- The University of Queensland
- Leighton Contractors Pty Ltd - Australia
- Renaissance Capital - South Africa
- Lanco Infratech Ltd - India
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Central Electricity Authority - India
- Indonesian Coal Mining Association
- Commonwealth Bank - Australia
- European Bulk Services B.V. - Netherlands
- Oldendorff Carriers - Singapore
- Chamber of Mines of South Africa
- Tata Chemicals Ltd - India
- Parry Sugars Refinery, India
- Marubeni Corporation - India
- Latin American Coal - Colombia
- Siam City Cement - Thailand
- Salva Resources Pvt Ltd - India
- Siam City Cement PLC, Thailand
- GMR Energy Limited - India
- Gujarat Electricity Regulatory Commission - India
- Kapuas Tunggal Persada - Indonesia
- Metalloyd Limited - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Indian Oil Corporation Limited
- IEA Clean Coal Centre - UK
- Makarim & Taira - Indonesia
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