We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 09 February 15
AUSTRALIAN COAL PRODUCERS BEST POSITIONED IN OVERSUPPLIED MARKET; US MINES MOST AT RISK - WOOD MACKENZIE
 In a 2015 global coal outlook report, Wood Mackenzie says that Australia and Indonesian coal suppliers will see some upside in the difficult months ahead as they continue to capture market share of coal exports from higher cost producers. Further modest productivity gains, the rapid fall in oil prices and currency devaluation in Australia and Russia will help lower costs. Therefore, Australian mines stands in a relatively strong position compared with higher cost suppliers - particularly those in the US - which are at much greater risk of closures this year. Even with increased closures and reduced US supply, Wood Mackenzie says they do not foresee sufficient volume exiting to balance the market and support price recovery. Lower-than-anticipated demand, especially from China combined with persistent production will be key factors that will sustain the weak market environment.
Australian producers best positioned in 2015
Mr Rory Simington, Principal Asia Pacific Coal Analyst says, “Australia is a standout competitor in both the metallurgical (met) and thermal coal trade, but particularly the former. Comparing 2014 from 2013, while global met coal import demand reduced by about 8 Mt, Australian exports rose by around 14 million tonnes (Mt), growing seaborne market share from 58% to 64%. The scalability of Australian mines and their high coal quality has enabled the displacement of major competitors in US, Canada and Indonesia. This trend is likely to continue thanks to a continued strong operating performance plus currency depreciation. On the other hand, US suppliers, many of which exhibit high costs, will not see the cost relief that currency devaluation brings to Australia.”
Furthermore, increased competition will come from higher Mozambique exports this year as Vale’s Nacala transport corridor ramps up indicating another year of aggressive pricing as producers fight to secure sales. In thermal coal, Australian exports were also strong, leaping 20Mt despite seaborne demand remaining essentially flat last year.
Lower costs discourage large-scale shutdowns
Despite a traumatic 2014 for the coal industry, mine shutdowns were relatively muted. Mr Simington explains, ”In fact metallurgical supply reductions were more than offset by the reduction in Chinese import demand, resulting in increased overcapacity. Although overall closures will accelerate this year, they will unlikely redress the imbalance.” Costly take or pay obligations in the event of closure, makes it more expensive for mines to shutdown than operate at a loss. As such, they remain in production and hamper the return to tighter market conditions. The recent low oil price and exchange rate has driven cost relief for Australia, Indonesia and Russia, which will further reduce the likelihood of wholesale supply cuts as well as delay any price recovery.
China uncertainties depress demand in oversupplied market
China’s economic rebalancing will continue to affect power demand growth and therefore thermal coal requirements. Of critical importance to the seaborne trade will be the effects of Government policies designed to protect the environment as well as domestic coal suppliers. Mr Robin Griffin, Research Director for Global Metallurgical Coal, says, “Current industry focus is on the new trace element restrictions for imported coal. We see most seaborne supply meeting the new guidelines but import levels are affected due to the uncertainty of the accuracy of coal quality tests and delays it may cause to the delivery process. Another big uncertainty to watch is the lengths to which the Chinese Government will go to protect its domestic industry.” Wood Mackenzie says stricter limits on imported coal quality is possible and the Government could make an aggressive move to waive the 17% value added tax (VAT) charged on coal sales which could considerably enhance the competitiveness of Chinese coal and enable some of the best quality and lowest cost Chinese coking coal to compete into Japan, South Korea or Taiwan. Should this occur, worsened oversupply conditions could occur in 2015.
Mr Griffin says “As China makes up 22% of seaborne trade and is expected see continued domestic oversupply, the country will be a major cause of depressed global import demand this year. Market fundamentals outside of China also remain uninspiring, for both metallurgical and thermal coal. Under such circumstances a material price recovery is unlikely this year”.
M&A activities to pick up in 2015
“Mine asset valuations have fallen considerably over the last three years due to the weakening market. Whilst low prices endure more companies will look to shed assets, perhaps to decrease debt or to allow a greater focus on their highest value operations. The negative price environment will persist through 2015 but not forever. Given our expectation of long term strength in coal demand fundamentals, the present market conditions offer a window of opportunity for both suppliers and buyers to consolidate their positions in the industry. We expect M&A to start picking up this year particularly for companies who want to gain a foothold in the industry for the long term.”
About Wood Mackenzie
Wood Mackenzie is a global leader in commercial intelligence for the energy, metals and mining industries. We provide objective analysis and advice on assets, companies and markets, giving clients the insights they need to make better strategic decisions
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 26 February 15
DRY BULK MARKET LOOKING FOR POSITIVE MOMENTUM, BUT PROSPECTS REMAIN DIM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
As the Baltic Dry Index (BDI) inched a bit higher over the past couple of sessions and the Chinese are returning to the market after a week long hi ...
Wednesday, 25 February 15
PORT OF NEWCASTLE SHIPPED 13.16MT OF COAL IN JANUARY; DECLINED 16.70% FROM A MONTH AGO
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port, has shipped $1.15 billio ...
Wednesday, 25 February 15
BDI SLIPPING ONCE MORE TO FRESH HISTORICAL LOWS
COALspot.com: With the BDI slipping once more to fresh historical lows and the Chinese holidays underway, signs for a positive reversal in the Dry ...
Tuesday, 24 February 15
FOB INDONESIA COAL SWAP SET TO RALLY
COALspot.com: Indonesian coal swaps for delivery Q2' 2015 rose week over week and month on month.
The Q2 swap increased US$ 3.30 (+7.30%) ...
Tuesday, 24 February 15
Q3' FOB RICHARDS BAY COAL SWAP CLOSED $59.80 W/E 20 FEB
COALspot.com: API 4 FOB Richards Bay Coal swap for delivery Q2' 2015 surge month over month and decline week on week.
The Q2 swap has soar ...
|
|
|
Showing 3176 to 3180 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Thai Mozambique Logistica
- Maheswari Brothers Coal Limited - India
- Xindia Steels Limited - India
- Medco Energi Mining Internasional
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Interocean Group of Companies - India
- Gujarat Mineral Development Corp Ltd - India
- The State Trading Corporation of India Ltd
- Mintek Dendrill Indonesia
- India Bulls Power Limited - India
- Bukit Makmur.PT - Indonesia
- SMG Consultants - Indonesia
- Salva Resources Pvt Ltd - India
- Trasteel International SA, Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Java Power - Indonesia
- Toyota Tsusho Corporation, Japan
- GVK Power & Infra Limited - India
- Marubeni Corporation - India
- Australian Coal Association
- Holcim Trading Pte Ltd - Singapore
- Global Business Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- CIMB Investment Bank - Malaysia
- Parry Sugars Refinery, India
- Directorate General of MIneral and Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- Lanco Infratech Ltd - India
- PNOC Exploration Corporation - Philippines
- Borneo Indobara - Indonesia
- Malabar Cements Ltd - India
- New Zealand Coal & Carbon
- Alfred C Toepfer International GmbH - Germany
- Ceylon Electricity Board - Sri Lanka
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- Kartika Selabumi Mining - Indonesia
- Romanian Commodities Exchange
- Antam Resourcindo - Indonesia
- Planning Commission, India
- Grasim Industreis Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Indo Tambangraya Megah - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Siam City Cement PLC, Thailand
- Wilmar Investment Holdings
- Aboitiz Power Corporation - Philippines
- Aditya Birla Group - India
- Straits Asia Resources Limited - Singapore
- IEA Clean Coal Centre - UK
- Pendopo Energi Batubara - Indonesia
- Anglo American - United Kingdom
- The University of Queensland
- Bukit Baiduri Energy - Indonesia
- Thiess Contractors Indonesia
- ICICI Bank Limited - India
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- Eastern Coal Council - USA
- Sindya Power Generating Company Private Ltd
- Siam City Cement - Thailand
- Timah Investasi Mineral - Indoneisa
- Electricity Generating Authority of Thailand
- Karbindo Abesyapradhi - Indoneisa
- Miang Besar Coal Terminal - Indonesia
- Heidelberg Cement - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Therma Luzon, Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Chamber of Mines of South Africa
- OPG Power Generation Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Energy Link Ltd, New Zealand
- Binh Thuan Hamico - Vietnam
- Kohat Cement Company Ltd. - Pakistan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Minerals Council of Australia
- Savvy Resources Ltd - HongKong
- Riau Bara Harum - Indonesia
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- Sojitz Corporation - Japan
- Globalindo Alam Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- South Luzon Thermal Energy Corporation
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- CNBM International Corporation - China
- Kumho Petrochemical, South Korea
- Merrill Lynch Commodities Europe
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Banpu Public Company Limited - Thailand
- Iligan Light & Power Inc, Philippines
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Semirara Mining Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Singapore Mercantile Exchange
- PTC India Limited - India
- Attock Cement Pakistan Limited
- Eastern Energy - Thailand
- Vizag Seaport Private Limited - India
- Africa Commodities Group - South Africa
- LBH Netherlands Bv - Netherlands
- SMC Global Power, Philippines
- Petron Corporation, Philippines
- Indogreen Group - Indonesia
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Gujarat Sidhee Cement - India
- Madhucon Powers Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Ind-Barath Power Infra Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Larsen & Toubro Limited - India
- SN Aboitiz Power Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coalindo Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Mercuria Energy - Indonesia
- Goldman Sachs - Singapore
- Oldendorff Carriers - Singapore
- Bhushan Steel Limited - India
- GAC Shipping (India) Pvt Ltd
- Uttam Galva Steels Limited - India
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- ASAPP Information Group - India
- Dalmia Cement Bharat India
- Global Green Power PLC Corporation, Philippines
- Metalloyd Limited - United Kingdom
- VISA Power Limited - India
- Meralco Power Generation, Philippines
- San Jose City I Power Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- AsiaOL BioFuels Corp., Philippines
- Kaltim Prima Coal - Indonesia
- Georgia Ports Authority, United States
- Formosa Plastics Group - Taiwan
- Bharathi Cement Corporation - India
- Bulk Trading Sa - Switzerland
- Sakthi Sugars Limited - India
- Bangladesh Power Developement Board
- The Treasury - Australian Government
- PowerSource Philippines DevCo
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Intertek Mineral Services - Indonesia
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- Posco Energy - South Korea
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Standard Chartered Bank - UAE
- Directorate Of Revenue Intelligence - India
- Renaissance Capital - South Africa
- Ministry of Transport, Egypt
- Makarim & Taira - Indonesia
- Orica Australia Pty. Ltd.
- Baramulti Group, Indonesia
- Carbofer General Trading SA - India
- Parliament of New Zealand
- Orica Mining Services - Indonesia
- Tamil Nadu electricity Board
- Economic Council, Georgia
- Agrawal Coal Company - India
- London Commodity Brokers - England
- Essar Steel Hazira Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Leighton Contractors Pty Ltd - Australia
- Indonesian Coal Mining Association
- Semirara Mining and Power Corporation, Philippines
- Coal and Oil Company - UAE
- Mjunction Services Limited - India
- Mercator Lines Limited - India
- Star Paper Mills Limited - India
- Simpson Spence & Young - Indonesia
- TeaM Sual Corporation - Philippines
- Independent Power Producers Association of India
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Altura Mining Limited, Indonesia
- Chettinad Cement Corporation Ltd - India
- Kideco Jaya Agung - Indonesia
- Ministry of Mines - Canada
|
| |
| |
|
