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, 10 October 13
SEVERAL PANAMAX FIXTURES FOR 1 YEAR TC HAVE BEEN REPORTED AROUND $13.5K/DAY - FEARNRESEARCH
Handy
The market is not much fancy as several holidays in the Far East last week. Tonnage side seems tight in SE Asia but there are many of them in ...
Wednesday, 09 October 13
PANAMAX: FIRM ; FIXING ACTIVITY INCREASED IN BOTH BASINS - INTERMODAL
This was another week of gains for the Dry Bulk market, albeit very modest ones compared to the previous ones. Charterers and owners struggled for t ...
Monday, 07 October 13
RICHARD BAY COAL TERMINAL SHIPPED 49.94 MMT OF COAL YTD
COALspot.com - Richards Bay Coal Terminal (RBCT), the world's single largest coal terminal has shipped 49,946,509 mt of coals YTD, according to por ...
Monday, 07 October 13
SOUTH AFRICA'S RBCT SHIPPED 7.94% MORE COAL IN SEPT' 13
COALspot.com - Richards Bay Coal Terminal (RBCT), the single largest coal export terminal in South Africa as well as in the world has shipped 7.94 p ...
Monday, 07 October 13
SGX - CFR SOUTH CHINA COAL SWAPS END ALMOST FLAT
COALspot.com : SGX has launched API 8 CFR South China Coal Swap on 29 April 2013 and SGX replaced the previous swap.
API 8 CFR South China Coal s ...
|
|
|
Showing 4076 to 4080 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Krishnapatnam Port Company Ltd. - India
- Riau Bara Harum - Indonesia
- Straits Asia Resources Limited - Singapore
- Indonesian Coal Mining Association
- San Jose City I Power Corp, Philippines
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Australian Commodity Traders Exchange
- Star Paper Mills Limited - India
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Global Business Power Corporation, Philippines
- Commonwealth Bank - Australia
- Sakthi Sugars Limited - India
- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- Baramulti Group, Indonesia
- Ministry of Transport, Egypt
- Cigading International Bulk Terminal - Indonesia
- London Commodity Brokers - England
- Kumho Petrochemical, South Korea
- MS Steel International - UAE
- Sical Logistics Limited - India
- Toyota Tsusho Corporation, Japan
- India Bulls Power Limited - India
- Ministry of Finance - Indonesia
- Kobexindo Tractors - Indoneisa
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- McConnell Dowell - Australia
- Australian Coal Association
- VISA Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Parry Sugars Refinery, India
- Attock Cement Pakistan Limited
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Wilmar Investment Holdings
- Kepco SPC Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Sojitz Corporation - Japan
- Marubeni Corporation - India
- Bhatia International Limited - India
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Directorate Of Revenue Intelligence - India
- Maharashtra Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- GVK Power & Infra Limited - India
- Georgia Ports Authority, United States
- Medco Energi Mining Internasional
- Manunggal Multi Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- GAC Shipping (India) Pvt Ltd
- Mercuria Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Asmin Koalindo Tuhup - Indonesia
- Kideco Jaya Agung - Indonesia
- Samtan Co., Ltd - South Korea
- Kartika Selabumi Mining - Indonesia
- Karaikal Port Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Tata Chemicals Ltd - India
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Romanian Commodities Exchange
- Iligan Light & Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wood Mackenzie - Singapore
- Borneo Indobara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Grasim Industreis Ltd - India
- Bukit Baiduri Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Holcim Trading Pte Ltd - Singapore
- ASAPP Information Group - India
- Posco Energy - South Korea
- South Luzon Thermal Energy Corporation
- International Coal Ventures Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Jorong Barutama Greston.PT - Indonesia
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Anglo American - United Kingdom
- Barasentosa Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- IEA Clean Coal Centre - UK
- Merrill Lynch Commodities Europe
- GMR Energy Limited - India
- CNBM International Corporation - China
- SMC Global Power, Philippines
- Leighton Contractors Pty Ltd - Australia
- Pendopo Energi Batubara - Indonesia
- Ministry of Mines - Canada
- Petrochimia International Co. Ltd.- Taiwan
- Xindia Steels Limited - India
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- Indika Energy - Indonesia
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Kalimantan Lumbung Energi - Indonesia
- SN Aboitiz Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Planning Commission, India
- Indogreen Group - Indonesia
- Parliament of New Zealand
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Ambuja Cements Ltd - India
- Intertek Mineral Services - Indonesia
- Mercator Lines Limited - India
- Savvy Resources Ltd - HongKong
- Meenaskhi Energy Private Limited - India
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- Trasteel International SA, Italy
- Altura Mining Limited, Indonesia
- Timah Investasi Mineral - Indoneisa
- Orica Mining Services - Indonesia
- Madhucon Powers Ltd - India
- Goldman Sachs - Singapore
- TeaM Sual Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Metalloyd Limited - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- New Zealand Coal & Carbon
- Eastern Energy - Thailand
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- Gujarat Sidhee Cement - India
- PowerSource Philippines DevCo
- Petron Corporation, Philippines
- Indian Oil Corporation Limited
- Bhoruka Overseas - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Standard Chartered Bank - UAE
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Tamil Nadu electricity Board
- Port Waratah Coal Services - Australia
- Salva Resources Pvt Ltd - India
- Chamber of Mines of South Africa
- Bharathi Cement Corporation - India
- Minerals Council of Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- LBH Netherlands Bv - Netherlands
- Bukit Makmur.PT - Indonesia
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Orica Australia Pty. Ltd.
- Coalindo Energy - Indonesia
- Rio Tinto Coal - Australia
- Siam City Cement - Thailand
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- The University of Queensland
- Binh Thuan Hamico - Vietnam
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Meralco Power Generation, Philippines
- Thai Mozambique Logistica
- Price Waterhouse Coopers - Russia
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- Carbofer General Trading SA - India
- Therma Luzon, Inc, Philippines
- Dalmia Cement Bharat India
- Mintek Dendrill Indonesia
- Alfred C Toepfer International GmbH - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Antam Resourcindo - Indonesia
- Bhushan Steel Limited - India
- Global Coal Blending Company Limited - Australia
- Vizag Seaport Private Limited - India
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Indo Tambangraya Megah - Indonesia
- Economic Council, Georgia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cement Manufacturers Association - India
- Mjunction Services Limited - India
- Jindal Steel & Power Ltd - India
- Lanco Infratech Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Interocean Group of Companies - India
- Vedanta Resources Plc - India
- Aboitiz Power Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- European Bulk Services B.V. - Netherlands
- Bulk Trading Sa - Switzerland
- Directorate General of MIneral and Coal - Indonesia
- Central Java Power - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Independent Power Producers Association of India
- IHS Mccloskey Coal Group - USA
- Latin American Coal - Colombia
|
| |
| |
|
