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Tuesday, 15 October 13
CHINA COAL IMPORTS TO KEEP GROWING IN THE YEARS TO COME, ALBEIT AT A SLOWER RATE - EVA TZIMA / NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
In its latest monthly report, shipbroker Intermodal highlighted the growing role of coal in the energy mix. According to Intermodal's research analyst, Eva Tzima, "since the beginning of 2013, there has been a lot of debate as for what the future might hold for the trade of coal. The majority of coal production is used to fuel coal-fired power plants in the form also known as thermal coal. Coal, which is today the source that feeds almost 40% of global electricity requirements, has been the fastest growing energy source since the beginning of the 21st century, ac-cording to the International Energy Agency. It’s been mainly on the back of developing economies, like those of China and India that the traded volume of the commodity has witnessed a rapid increase. With China being globally the biggest producer and consumer of thermal coal, the demand for the latter has been inextricably linked with that of economic growth in the world’s second largest econo-my. As the rate of Chinese economic growth has been slowing down, so has the rate of coal consumption, while at the same time, due to its non green nature, the popularity of coal as an energy source has been gathering less and less supporters worldwide", she noted.
Tzima added that "despite the fact that China has been sitting on trillions of tonnes of reserves and therefore local appetite for coal has been historically satisfied onshore, as of the end of 2008 the country’s coal imports have started to increase at a very fast pace. The big beneficiary of this trend was no other than the dry bulkers, as the majority of those imports is realized by seaborne trade. Last year alone the an-nual increase of imported amounts of coal into China touched al-most 60% compared to those of 2011. As we head into the final quarter of 2013 it seems that an even higher figure of imports will be printed, proving that the trend is still strong. A little less than one third of Chinese coal imports is currently being satisfied by Indonesian reserves, while other Pacific region countries like Australia and Vietnam also account for substantial portions".
According to Intermodal's analyst, "the question that naturally comes to mind is why turning to offshore supplies for coal when the commodity is plentiful right there in your court? The answer is simple; Price. The cost of producing and transporting coal domestically has been higher than importing it. But as the country’s imports have continued to rise and its economy has gone into a slower gear, Chinese stockpiles have also increased significantly, fact which in its turn has put significant pressure on local prices. Since January alone, coal prices in China have softened more than 15%. As local prices have been softening a lot of reports have surfaced warning about possible pressure on coal imports going forward. On top of that, the Chinese government, in its effort to pursue more environmental friendly policies, could also weigh down on the future quantity of coal cargoes imported. The energy targets initially set forth by the government, as part of its overall pollution control plan, included both a ceiling on the imported volume and use, as well as a floor on the quality of coal consumed in the coun-try, adding further to the negative sentiment around coal usage altogether", Tzima noted.
"So, will the trade of coal start burning low in the Pacific region? I would think that most probably not. On the one hand the infrastructure modernization needed, should the government keep pushing for lower emissions of CO2, will add on to the cost of Chinese pro-duction. This will be reflected on the price of locally produced coal, restricting the gap between domestic and international prices to narrow down to a point where imports would no longer make economic sense. On top of that, while local coal prices have been softening, the same has happened to coal prices globally and even at a higher degree, so the price incentive for Chinese demand to dis-tant itself from imports doesn’t appear to be there. At the same time what originally started as a very solid plan to cap imported quantities has slowly been revised to a less strict policy, which doesn’t seem as hurtful for imports as it was in its initial form. This revision shows that cheaper energy sources are likely to hold centre stage, as it seems quite possible that the Chinese government would chose to partly sacrifice its “Green” targets for its “Growth” targets. In fact while it has pledged to reduce the country’s coal usage to 65% of its total energy mix, a 2% reduction from what it is today, it hasn’t set a specific amount of coal consumption. This means that under the current plan, the Chinese will still allow for growth in coal consumption should the country’s energy needs continue to rise. But will they do? In my view the fact that the Chinese government has compromised with slower economic growth targets for a longer period of time, in order to ensure the sustainability of that growth, in itself is supportive of firm on-going energy consumption within the country. Following the path of slower but more sustainable growth, energy consumption should be maintained at its current growth levels rather than exhaust itself in the medium term follow-ing strong but short-lived periods of overconsumption.
So despite the fact that King Coal might be facing some opposition, it seems that the Chinese will continue to be supportive of both imports and consumption of the commodity. And unless dramatic action is taken by their government, imports should keep increasing in the next years. This will almost certainly be an increase at a slower rate, but an increase nevertheless, as cheaper options of the commodity will be still made available through seaborne trade in the Asia-Pacific region, allowing for coal to keep burning hotter for a longer period than what some might chose to think...", Tzima concluded
Research Analyst - Eva Tzima
Source: Nikos Roussanoglou, Hellenic Shipping News
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Friday, 12 July 13
U.S. PRODUCED 18.40 MMST COAL WEEK ENDED 6 JULY 2013
COALspot.com – United states the world’s second largest coal producer produced totaled approximately 18.40 million short tons (mmst) of ...
Thursday, 11 July 13
PANAMAX: PACIFIC ROUND PAY AROUND $6,500/D; ATLANTIC ROUND VOYAGE PAY AROUND US$ 10,000/D - FEARNLEYS AS
Handy
The Feast market is quiet, July date cargoes remain unfixed as there is a gap between what owners aiming and charterers willing to pay. There ...
Wednesday, 10 July 13
DRY BULK MARKET IS STILL STRUGGLING TO SURVIVE - INTERMODAL
COALspot.com : With the first half of the year now behind us and, as expected, most shipping segments in the dry bulk market are struggling to survi ...
Tuesday, 09 July 13
COAL PRICE REMAINS SLUGGISH - TRIMEGAH
COALspot.com - Newcastle coal price has reached US$ 76.30/ton (-15.9% YTD), bringing YTD’13 average to stand at US$ 87.90/ton, 6.80% lower tha ...
Tuesday, 09 July 13
NEWCASTLE COAL EXPORTS JUMP 27.53% ON WEEK TO 2.97 MILLION MT
COALspot.com - Newcastle Coal exports up 27.53% to 2.97 million tons W-o-W.
Newcastle port in Australia has loaded 2,974,715 tons of coal for the ...
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Showing 4211 to 4215 news of total 6871 |
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- Independent Power Producers Association of India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Trasteel International SA, Italy
- Jindal Steel & Power Ltd - India
- ASAPP Information Group - India
- GMR Energy Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Indonesian Coal Mining Association
- European Bulk Services B.V. - Netherlands
- Tata Chemicals Ltd - India
- Central Electricity Authority - India
- London Commodity Brokers - England
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Medco Energi Mining Internasional
- Sree Jayajothi Cements Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- New Zealand Coal & Carbon
- Indogreen Group - Indonesia
- Makarim & Taira - Indonesia
- Videocon Industries ltd - India
- Ministry of Finance - Indonesia
- Sarangani Energy Corporation, Philippines
- Marubeni Corporation - India
- Coal and Oil Company - UAE
- Directorate Of Revenue Intelligence - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Interocean Group of Companies - India
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- Kaltim Prima Coal - Indonesia
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- The Treasury - Australian Government
- Sindya Power Generating Company Private Ltd
- Kohat Cement Company Ltd. - Pakistan
- Global Green Power PLC Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Mercator Lines Limited - India
- Antam Resourcindo - Indonesia
- Latin American Coal - Colombia
- Kapuas Tunggal Persada - Indonesia
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- Jorong Barutama Greston.PT - Indonesia
- Meralco Power Generation, Philippines
- Toyota Tsusho Corporation, Japan
- Dalmia Cement Bharat India
- Thiess Contractors Indonesia
- Formosa Plastics Group - Taiwan
- Pendopo Energi Batubara - Indonesia
- Kobexindo Tractors - Indoneisa
- Indo Tambangraya Megah - Indonesia
- IHS Mccloskey Coal Group - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Orica Mining Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Vizag Seaport Private Limited - India
- Bukit Baiduri Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Ind-Barath Power Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Attock Cement Pakistan Limited
- Chettinad Cement Corporation Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Chamber of Mines of South Africa
- Minerals Council of Australia
- Economic Council, Georgia
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Mintek Dendrill Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- LBH Netherlands Bv - Netherlands
- Globalindo Alam Lestari - Indonesia
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Carbofer General Trading SA - India
- Altura Mining Limited, Indonesia
- IEA Clean Coal Centre - UK
- Samtan Co., Ltd - South Korea
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- The State Trading Corporation of India Ltd
- Standard Chartered Bank - UAE
- Bhushan Steel Limited - India
- White Energy Company Limited
- Banpu Public Company Limited - Thailand
- Intertek Mineral Services - Indonesia
- Bhoruka Overseas - Indonesia
- Anglo American - United Kingdom
- Lanco Infratech Ltd - India
- Binh Thuan Hamico - Vietnam
- Metalloyd Limited - United Kingdom
- Price Waterhouse Coopers - Russia
- Therma Luzon, Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Sical Logistics Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Australian Commodity Traders Exchange
- Bangladesh Power Developement Board
- Barasentosa Lestari - Indonesia
- ICICI Bank Limited - India
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Coalindo Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
- Global Business Power Corporation, Philippines
- Commonwealth Bank - Australia
- Oldendorff Carriers - Singapore
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- Mjunction Services Limited - India
- Eastern Energy - Thailand
- GAC Shipping (India) Pvt Ltd
- Xindia Steels Limited - India
- Energy Development Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Simpson Spence & Young - Indonesia
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Gujarat Sidhee Cement - India
- Gujarat Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- PTC India Limited - India
- Straits Asia Resources Limited - Singapore
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- Ministry of Transport, Egypt
- Krishnapatnam Port Company Ltd. - India
- Rio Tinto Coal - Australia
- Alfred C Toepfer International GmbH - Germany
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Uttam Galva Steels Limited - India
- Coastal Gujarat Power Limited - India
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Jaiprakash Power Ventures ltd
- McConnell Dowell - Australia
- Siam City Cement PLC, Thailand
- The University of Queensland
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- Indian Energy Exchange, India
- Cigading International Bulk Terminal - Indonesia
- Orica Australia Pty. Ltd.
- GN Power Mariveles Coal Plant, Philippines
- Wilmar Investment Holdings
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Star Paper Mills Limited - India
- Indian Oil Corporation Limited
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- Renaissance Capital - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bulk Trading Sa - Switzerland
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Singapore Mercantile Exchange
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Eastern Coal Council - USA
- Australian Coal Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Karbindo Abesyapradhi - Indoneisa
- Port Waratah Coal Services - Australia
- Malabar Cements Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Savvy Resources Ltd - HongKong
- Power Finance Corporation Ltd., India
- Cement Manufacturers Association - India
- Pipit Mutiara Jaya. PT, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Bhatia International Limited - India
- Meenaskhi Energy Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Parliament of New Zealand
- Central Java Power - Indonesia
- Kumho Petrochemical, South Korea
- CIMB Investment Bank - Malaysia
- Kartika Selabumi Mining - Indonesia
- Agrawal Coal Company - India
- Asmin Koalindo Tuhup - Indonesia
- TeaM Sual Corporation - Philippines
- Petron Corporation, Philippines
- Georgia Ports Authority, United States
- Tamil Nadu electricity Board
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