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Monday, 17 August 15
INDONESIAN THERMAL COAL REFERENCE PRICE HITS RECORD LOW AGAIN!
 COALspot.com - The Director General of Mineral and Coal of Indonesia revised down Indonesian coal benchmark price once again to US$ 59.14 per MT for 6322 GAR coal for August 2015 delivery. The August price reference for Indonesian coal declined just 0.03% or US cents 2 per MT month over month and lost 7.36% year to date.
According to the date from Director General shows that, the government has fixed US$ 14.61 per MT (decline 0.07% month on month) for the coal with calorific value 2,995 kcal/kg on GAR with total moisture 50.10% on as received basis for August 2015 delivery. The royalty and taxes will be calculated based on this declared HPB. In the meantime, the government also fixed US$ 42.93 per MT as HPB for 5000 GAR coal with total moisture 22.40%, Ash 8.90% and Sulphur 0.54% for August 2015 deliveries.
Indonesian thermal coal reference price or called HBA recorded the lowest level in 80 months in August or since launching of HBA by the government of Indonesia in January 2009.
Indonesian coal benchmark price for August 2015 was calculated based on calorific value of 6,322 kcal/kg (GAR), stated to be using a formula based on the July 2015 index average of ICI-1 (Indonesia Coal Index) 25%, Platts-5900 25%, NEX (Newcastle Export Index) 25%, and GC (globalCoal Index) 25% and its was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8% (arb), Ash Content 15 % (arb) and delivery free on Board (FOB) Vessel basis and apply to spot contract, delivery between 1 – 31 August 2015.
The highest benchmark price was declared by the Ministry of Energy & Mineral Resources of Indonesia in February 2011 and compared today's price the February 2011 price was higher by US$ 67.91 per MT.
The government of Indonesia was publishing a monthly coal price reference (HBA & HPB) since January 2009 to be used by coal producers for all spot and term contracts. However, the official implementation of HBA was commenced since September 2011. According to government regulation, the coal benchmark price must be used by the holders of production operation IUPs, special production operation IUP's, and CCoWs as a reference in determining the coal selling price for a particular period.
The declared HBA in August 2015 was 15.86 per cent or $ 11.15 lower compared to the same period in 2014.
HBA of February 2011 was the highest since the launching of HBA by the government of Indonesia (US$ 127.05 / MT for 6322 GAR coal) and the lowest was declared in this month (US$ 59.14/ MT).
This month declared price is only valid for the spot price (loading on or before 31 August 2015), while as for term price (up to 12 months supply), the average reference price (HPB) of the previous three months will be used to determine the selling price. (50% of the latest available month HPB (this month) 30% one month prior HPB and 20% of two-month prior HPB).
The government also declared price marker for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands act as the benchmark and used to calculate other 66 coal types with a quality similar to the coal price markers.
For sales in the barge, the reference price is reduced by barging and trans-shipment costs from the barge to the vessel. The government has recently issued a regulation (644.K/30/DJB/2013 dated 21 March 2013) to regulate or determine coal prices on FOB barge. The government also fixed the freight for barging, surveyor, insurance and etc., to determine FOB barge price. Transshipment cost US$ 4.00/MT + Surveyor cost US$ 0.25/MT + Insurance 0.80% per shipment + Barging cost (for 270 footer - (US$ 0.0221 X barging distance) + US$ 3.7406, for 270 - 330 footer - (US$ 0.0184 X barging distance) + US$ 3.1172 and > 330 footer - (US$ 0.0154 X barging distance) + US$ 2.6002.
The coal price reference is being established to fulfill the requirement of mining law 04/2009 and ministerial decree No.17/2010. In addition to that, it aims to increase government revenue from royalties from coal producers.
The excess of coal supplies and weak demand, fast developments of renewable energy and fall in oil prices are still to be blamed for delay of price recovery or falling of prices. Today’s price levels are not supporting any new investments or new explorations in coal mines.
According to reports, the free cash flow of various Indonesian coal miners have turned negative, the generated cash from coal production cannot cover companies’ operational costs. Big Indonesian coal players are now eager to diversify into other businesses such as power generation and logistics.
Low coal prices have big implications for exporting countries like Indonesia, Australia, South Africa and Russia. We believe it will take several years to recover fully as the supply is still quite higher compare to the demand and also the price of oil has also falling drastically. The price of oil fallen from more than $100 per barrel in June 2014 to under $49 today.
However according to Medium-Term Coal Market Report 2014, the global coal demand growth has been slowing in recent years, and the report sees that trend continuing. Coal demand will grow at an average rate of 2.1% per year through 2019.
According to the report, the global demand for coal over the next five years will continue marching higher, breaking the 9-billion-tonne level by 2019. The report notes that despite China’s efforts to moderate its coal consumption, it will still account for three-fifths of demand growth during the outlook period. Moreover, China will be joined by India, ASEAN countries and other countries in Asia as the main engines of growth in coal consumption, offsetting declines in Europe and the United States.
The government of Indonesia is also implemented a new income tax of 1.5% on the delivery value to domestic or export value of the coal starting from 8 August 2015. The new tax would be levied on IUP holders or Izin Usaha Pertambangan and not on Coal Contract of Works or CCoW holders. Holders of Coal Contract of Works are exempted from this new tax. However CCoW holders are dominating Indonesian coal industry or approximately 75% of coal output is coming from those big scale miners in Indonesia.
It would be nice to see coal prices settle at a point where both the producer and consumer can sustain. Will it happen any time soon……..?
Click here for full details of Indonesian coal price reference since January 2009.(cs).
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Monday, 03 August 15
NEWCASTLE COAL SWAPS DECLINE FURTHER THIS PAST WEEK
COALspot.com: API 5 FOB Newcastle Coal swap for 4Q’ 2015 delivery down $ 1.92 per MT (-4.22%) month over month to US$ 43.58 per mt. The swap ...
Monday, 03 August 15
CFR SOUTH CHINA COAL SWAPS SLIDE THIS WEEK
COALspot.com: API 8 CFR South China Coal swap for 4Q’ 2015 delivery declined US$ 1.64 (3.14%) per MT month over month.
A commodity swap ...
Sunday, 02 August 15
CAPESIZE RATES PUSH BDI UPWARD
COALspot.com: The freight market was buoyant this week as BDI rose 4.14 pct to 1131 points. The cape index was also increased 16.50 pct 2209 points ...
Saturday, 01 August 15
DRY BULK MARKET KEEPS ITS MOMENTUM, AS OUTLOOK IMPROVES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Although conditions remain more than challenging, especially from an economic point of view (aka China’s stock worries), the dry bulk market ...
Friday, 31 July 15
CAPE'S PAPER MARKET REMAINS FIRM - INTERMODAL
COALspot.com: The positive sentiment that the Dry Bulk market has been enjoying as of the previous month, was carried through last week as well, bu ...
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- Indonesian Coal Mining Association
- Kideco Jaya Agung - Indonesia
- European Bulk Services B.V. - Netherlands
- TNB Fuel Sdn Bhd - Malaysia
- PowerSource Philippines DevCo
- Kepco SPC Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- Tamil Nadu electricity Board
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Essar Steel Hazira Ltd - India
- Dalmia Cement Bharat India
- IEA Clean Coal Centre - UK
- Attock Cement Pakistan Limited
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Indo Tambangraya Megah - Indonesia
- Coalindo Energy - Indonesia
- Interocean Group of Companies - India
- GVK Power & Infra Limited - India
- Mercuria Energy - Indonesia
- Mjunction Services Limited - India
- SMC Global Power, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thai Mozambique Logistica
- Australian Coal Association
- Antam Resourcindo - Indonesia
- London Commodity Brokers - England
- Rio Tinto Coal - Australia
- Commonwealth Bank - Australia
- Gujarat Mineral Development Corp Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Miang Besar Coal Terminal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Lanco Infratech Ltd - India
- Sojitz Corporation - Japan
- Semirara Mining Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Gujarat Sidhee Cement - India
- Central Java Power - Indonesia
- Eastern Coal Council - USA
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Siam City Cement PLC, Thailand
- Larsen & Toubro Limited - India
- Cement Manufacturers Association - India
- International Coal Ventures Pvt Ltd - India
- Economic Council, Georgia
- Mintek Dendrill Indonesia
- Electricity Generating Authority of Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- White Energy Company Limited
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Binh Thuan Hamico - Vietnam
- Kartika Selabumi Mining - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- Kobexindo Tractors - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Global Coal Blending Company Limited - Australia
- Intertek Mineral Services - Indonesia
- Bulk Trading Sa - Switzerland
- Pendopo Energi Batubara - Indonesia
- Bukit Makmur.PT - Indonesia
- Uttam Galva Steels Limited - India
- Baramulti Group, Indonesia
- Thiess Contractors Indonesia
- Savvy Resources Ltd - HongKong
- Sindya Power Generating Company Private Ltd
- Indian Energy Exchange, India
- Global Green Power PLC Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Indian Oil Corporation Limited
- Petron Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Link Ltd, New Zealand
- CIMB Investment Bank - Malaysia
- Rashtriya Ispat Nigam Limited - India
- Alfred C Toepfer International GmbH - Germany
- Coastal Gujarat Power Limited - India
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The Treasury - Australian Government
- Ministry of Finance - Indonesia
- Siam City Cement - Thailand
- Bhoruka Overseas - Indonesia
- Ambuja Cements Ltd - India
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- Bhatia International Limited - India
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- Medco Energi Mining Internasional
- Tata Chemicals Ltd - India
- Formosa Plastics Group - Taiwan
- Power Finance Corporation Ltd., India
- Bayan Resources Tbk. - Indonesia
- Sical Logistics Limited - India
- New Zealand Coal & Carbon
- Anglo American - United Kingdom
- Electricity Authority, New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Independent Power Producers Association of India
- Madhucon Powers Ltd - India
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Globalindo Alam Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Altura Mining Limited, Indonesia
- Marubeni Corporation - India
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- San Jose City I Power Corp, Philippines
- Meralco Power Generation, Philippines
- Global Business Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Kumho Petrochemical, South Korea
- Renaissance Capital - South Africa
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- Chettinad Cement Corporation Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Vizag Seaport Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Transport, Egypt
- Merrill Lynch Commodities Europe
- Maheswari Brothers Coal Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Georgia Ports Authority, United States
- Goldman Sachs - Singapore
- Wood Mackenzie - Singapore
- Indogreen Group - Indonesia
- Energy Development Corp, Philippines
- The University of Queensland
- Port Waratah Coal Services - Australia
- Romanian Commodities Exchange
- Trasteel International SA, Italy
- PTC India Limited - India
- Orica Australia Pty. Ltd.
- Bahari Cakrawala Sebuku - Indonesia
- Heidelberg Cement - Germany
- Minerals Council of Australia
- Singapore Mercantile Exchange
- Asmin Koalindo Tuhup - Indonesia
- Edison Trading Spa - Italy
- GMR Energy Limited - India
- Orica Mining Services - Indonesia
- Barasentosa Lestari - Indonesia
- Central Electricity Authority - India
- Riau Bara Harum - Indonesia
- SMG Consultants - Indonesia
- Parry Sugars Refinery, India
- Banpu Public Company Limited - Thailand
- Indika Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Iligan Light & Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Aditya Birla Group - India
- Grasim Industreis Ltd - India
- Bhushan Steel Limited - India
- Sakthi Sugars Limited - India
- Bangladesh Power Developement Board
- Kaltim Prima Coal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Metalloyd Limited - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Ind-Barath Power Infra Limited - India
- Posco Energy - South Korea
- Sinarmas Energy and Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Borneo Indobara - Indonesia
- Star Paper Mills Limited - India
- Semirara Mining and Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Carbofer General Trading SA - India
- Planning Commission, India
- Africa Commodities Group - South Africa
- Mercator Lines Limited - India
- Latin American Coal - Colombia
- Sarangani Energy Corporation, Philippines
- McConnell Dowell - Australia
- Parliament of New Zealand
- Karaikal Port Pvt Ltd - India
- VISA Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Malabar Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Price Waterhouse Coopers - Russia
- Ministry of Mines - Canada
- IHS Mccloskey Coal Group - USA
- CNBM International Corporation - China
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