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Tuesday, 07 July 09
POWER - STATION COAL MAY RISE ON CHINA DEMAND, SUPPLIES, UBS SAYS


Power-station coal prices in Asia may increase in 2010 because of higher demand from China, the second-largest energy-consuming nation, and supply constraints, UBS AG said.

UBS has raised its 2010 forecast for the benchmark coal grade burned by Japanese utilities to $90 a metric ton from $80 a ton in 2010, analysts from the bank wrote in a report dated yesterday. Power-station coal prices at Australia’s Newcastle port, an Asian benchmark, climbed 6.5 percent to $73.13 a ton in the week ended July 3, according to the globalCOAL NEWC Index.

Bottlenecks at Australian ports, heavy rain in Indonesia and increased imports by China constrained supplies of the fuel to Asian customers in 2007 and drove up prices. Market conditions are expected to tighten starting in the fourth quarter of this year and peak in 2011, UBS said.

“We are once again experiencing an increasingly tighter coal market with a theme developing similar to 2007,” UBS analysts led by Jakarta-based Andreas Bokkenheuser said in the note. China, the biggest producer and consumer of coal, burns the fuel to generate about 80 percent of its electricity.

Power use is increasing in China, as light industries step up production, after heavy industrial growth recovered in June, the UBS analysts said. Australian and Indonesian supply growth remains low and mining shutdowns in China’s Shanxi province have added to regional supply constraints, UBS said.

Price estimates for 2011 to 2013 have been reduced to factor in a possible supply response as coal producers address shortages, the analysts said.
Source: Bloomberg
(
http://www.bloomberg.com/apps/news?pid=20601081&sid=aYezGDx3lDu4)



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Friday, 15 May 09
INDIKA EXPECTS TO INCREASE COAL PRODUCTION BY 12.68% IN 2010 - THE JAKARTA POST
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Thursday, 14 May 09
INDONESIA 2009 COAL OUTPUT REVISED DOWN - REUTERS
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Thursday, 14 May 09
PAKISTAN WILL IMPORT 3.2 MILLION TON OF COAL IN 2009 - SEATRADE
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Wednesday, 13 May 09
ADARO, ITM EXPECT COAL GROWTH IN 2009
Adaro, which has a market capitalization of $3.64 billion, sells to 48 customers in 18 countries worldwide, including power utilities Thai Power and ...


Wednesday, 13 May 09
COAL SUPPLY MAY BE VASTLY OVERESTIMATED - ABC SCIENCE
The world's coal supply suggests reserves may be vastly overestimated and we could be facing an unprecedented global energy crisis, according to a ...


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