We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 08 October 13
CHINA: INTENSE COMPETITION AMONG DOMESTIC COAL MINERS AS 2013 IMPORT DEMAND REMAINS STRONG - WOOD MACKENZIE
 Prices will not fall under RMB500/t or risk supply availability to the coastal market
Despite China's lower economic growth, Wood Mackenzie says that import demand will still meet previous high expectations, although overall demand growth will be lower. This is due to lower seaborne coal prices compared to domestic coal prices in coastal China. As such, domestic producers are competing for market share by lowering prices in spite of negative margins. This explains the recent continuous drop in Chinese coal prices. However, Wood Mackenzie says that coastal China coal prices will be supported at *RMB500 per tonne (t) as at this price level 40% of domestic supply operates at negative margins.
China's gross domestic product (GDP) growth has slowed from 9.3% to 7.5% from 2011 to 2013. As a result, power demand growth has slowed in China and coal demand in coastal provinces has remained flat, staying at 2011 levels of 1.2 billion tonnes(Bt). In contrast, seaborne demand increased rapidly - This year, Wood Mackenzie expects China to import 235Mt of thermal and 67Mt of metallurgical coal, up from 168Mt and 31Mt respectively in 2011. This translates to a growth in share of seaborne imports into coastal China from 17% to about 25% between 2011 to 2013.
Wood Mackenzie's Senior Analyst Coal Market Research, Mr. Prakash Sharma says, "The trend of increased coal imports has been aided by weak coal prices in the international market. This means that Chinese coal import demand is almost entirely driven by the competitiveness of imported versus domestic supply. As such, large Chinese miners are adopting volume strategy by producing more to bring down operating costs and pricing lower to maintain market share."
These measures will hold market share in the short-term but may be counter-effective if prices fall too low in coastal China. Therefore we believe prices find a floor at RMB500/t. Small to medium sized domestic players will be most affected due to relatively high fixed labour costs and mine safety expenses in China. Large producers such as Shenhua and China Coal, who have resorted to aggressive pricing, contribute almost 50% of China's domestic coal production. The remainder 50% comes from the small to medium size miners.
Rohan Kendall, Senior Analyst for Coal Supply Research, says, "At RMB 500/t, we estimate that 40% of China's thermal coal production will produce at negative margins. Small to medium sized producers operating at negative margins, particularly those producing low-energy coal, face a real risk of mine closures. The situation may also trigger further consolidation of small loss-making mines in China."
Summarizing, Mr Sharma says, "The 40% of domestic production producing at negative margins equates to about 150% of the size of the current seaborne market. Full replacement volumes cannot feasibly be sourced from imports without creating a price response that will actually incentivise domestic miners to remain in production. Therefore, we believe prices will be supported above RMB 500/t, turning the tide on the current price trend."
*All prices refer to benchmark FOB Qinghuangdao Thermal coal price (5500 kcal/kg NAR basis) inclusive of 17% VAT.
Editor's notes:
Wood Mackenzie is the most comprehensive source of knowledge about the world's energy and metals industries. We analyse and advise on every stage along the value chain - from discovery to delivery, and beyond - to provide clients with the commercial insight that makes them stronger. For more information visit: www.woodmac.com
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 17 October 13
CHINA'S COAL IMPORTS DOWN 9.4% TO 25.96 MMT IN AUGUST
COALspot.com: China's August Imported coal volumes down 9.4% m-m but up 27% y-y, BNP said in its latest China Coal & Power report released on 1 ...
Wednesday, 16 October 13
NEW STRATEGIES AND OPPORTUNITIES IN A RAPIDLY EVOLVING COAL INDUSTRY
The 12th Annual Coal Markets assumes even more significance as the industry seeks more market information, inputs on trade strategies, supply and de ...
Wednesday, 16 October 13
CAPES: RATES DROPPED; PANAMAX: ADVANCED - INTERMODAL
After a month and a half of straight weekly positive closings, the BDI has finished the week in the red. Monday started slow as holidays in the East ...
Wednesday, 16 October 13
WILL THIS LATEST DRY BULK MARKET UPTREND PROVE TO BE AS LONG-LIVED OR JUST ANOTHER MOMENTARY SPIKE? - CHRISTOS MANZTIOS
COALspot.com: So here we are again facing the same old question: Will this latest market uptrend prove to be as long-lived as all owners hope or jus ...
Wednesday, 16 October 13
KOSEP TO IMPORT 0.49 MILLION TONS OF 4600 NAR COAL FOR JAN - FEB '14
COALspot.com - Korea South-East Power Co., a Korean generator and distributor of electricity on behalf of five Korean Gencos intends to procure 490, ...
|
|
|
Showing 4061 to 4065 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Sarangani Energy Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- The University of Queensland
- Chettinad Cement Corporation Ltd - India
- Ministry of Transport, Egypt
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Intertek Mineral Services - Indonesia
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Bulk Trading Sa - Switzerland
- Orica Australia Pty. Ltd.
- Marubeni Corporation - India
- IEA Clean Coal Centre - UK
- Holcim Trading Pte Ltd - Singapore
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Kumho Petrochemical, South Korea
- Kobexindo Tractors - Indoneisa
- Price Waterhouse Coopers - Russia
- Parliament of New Zealand
- Videocon Industries ltd - India
- Sinarmas Energy and Mining - Indonesia
- London Commodity Brokers - England
- Samtan Co., Ltd - South Korea
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Mintek Dendrill Indonesia
- ASAPP Information Group - India
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Minerals Council of Australia
- Standard Chartered Bank - UAE
- Miang Besar Coal Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Straits Asia Resources Limited - Singapore
- OPG Power Generation Pvt Ltd - India
- Independent Power Producers Association of India
- PNOC Exploration Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- Central Java Power - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Thai Mozambique Logistica
- Bahari Cakrawala Sebuku - Indonesia
- Antam Resourcindo - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- GMR Energy Limited - India
- Medco Energi Mining Internasional
- Petron Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Leighton Contractors Pty Ltd - Australia
- Cigading International Bulk Terminal - Indonesia
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Global Business Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Siam City Cement PLC, Thailand
- CIMB Investment Bank - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Renaissance Capital - South Africa
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Port Waratah Coal Services - Australia
- Meenaskhi Energy Private Limited - India
- Eastern Coal Council - USA
- Binh Thuan Hamico - Vietnam
- Formosa Plastics Group - Taiwan
- The State Trading Corporation of India Ltd
- Meralco Power Generation, Philippines
- Commonwealth Bank - Australia
- White Energy Company Limited
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Carbofer General Trading SA - India
- Pendopo Energi Batubara - Indonesia
- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- Coal and Oil Company - UAE
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Mines - Canada
- Simpson Spence & Young - Indonesia
- Indo Tambangraya Megah - Indonesia
- Makarim & Taira - Indonesia
- Tamil Nadu electricity Board
- Maheswari Brothers Coal Limited - India
- Energy Link Ltd, New Zealand
- CNBM International Corporation - China
- GVK Power & Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- International Coal Ventures Pvt Ltd - India
- Heidelberg Cement - Germany
- Australian Coal Association
- Siam City Cement - Thailand
- MS Steel International - UAE
- Kapuas Tunggal Persada - Indonesia
- Central Electricity Authority - India
- Ceylon Electricity Board - Sri Lanka
- Interocean Group of Companies - India
- Tata Chemicals Ltd - India
- Essar Steel Hazira Ltd - India
- Bhushan Steel Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Alfred C Toepfer International GmbH - Germany
- Mercuria Energy - Indonesia
- PTC India Limited - India
- Indogreen Group - Indonesia
- Kideco Jaya Agung - Indonesia
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ambuja Cements Ltd - India
- San Jose City I Power Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Kalimantan Lumbung Energi - Indonesia
- Madhucon Powers Ltd - India
- Oldendorff Carriers - Singapore
- Globalindo Alam Lestari - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Mercator Lines Limited - India
- Riau Bara Harum - Indonesia
- Energy Development Corp, Philippines
- Cement Manufacturers Association - India
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
- Georgia Ports Authority, United States
- Attock Cement Pakistan Limited
- Agrawal Coal Company - India
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- Semirara Mining and Power Corporation, Philippines
- Planning Commission, India
- Semirara Mining Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- LBH Netherlands Bv - Netherlands
- Lanco Infratech Ltd - India
- Sojitz Corporation - Japan
- Jaiprakash Power Ventures ltd
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- Chamber of Mines of South Africa
- TeaM Sual Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Star Paper Mills Limited - India
- Anglo American - United Kingdom
- Larsen & Toubro Limited - India
- Bhoruka Overseas - Indonesia
- Global Coal Blending Company Limited - Australia
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- SMG Consultants - Indonesia
- Singapore Mercantile Exchange
- The Treasury - Australian Government
- Vedanta Resources Plc - India
- Salva Resources Pvt Ltd - India
- Latin American Coal - Colombia
- Trasteel International SA, Italy
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- Indonesian Coal Mining Association
- Australian Commodity Traders Exchange
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- Parry Sugars Refinery, India
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Posco Energy - South Korea
- Ind-Barath Power Infra Limited - India
- Baramulti Group, Indonesia
- Directorate Of Revenue Intelligence - India
- Bharathi Cement Corporation - India
- TNB Fuel Sdn Bhd - Malaysia
- Karaikal Port Pvt Ltd - India
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- Borneo Indobara - Indonesia
- Power Finance Corporation Ltd., India
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- SN Aboitiz Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- IHS Mccloskey Coal Group - USA
- Orica Mining Services - Indonesia
- SMC Global Power, Philippines
- Bayan Resources Tbk. - Indonesia
- McConnell Dowell - Australia
- Economic Council, Georgia
- Bukit Makmur.PT - Indonesia
- Uttam Galva Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- Kartika Selabumi Mining - Indonesia
|
| |
| |
|
