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Thursday, 03 March 16
INDIA'S BUDGET NOT ENOUGH TO BOOST STEELMAKERS' PROFITABILITY - FITCH RATINGS
COALspot.com: Fitch Ratings says that increase in proposed infrastructure spending in India's latest government budget is unlikely to provide a boost to domestic steel demand growth, unless project execution rates pick up significantly. Domestic steel producers also face overcapacity, which is likely to weigh on their profitability and credit metrics in the near term.

The budget plans to increase capex on infrastructure (roads, railways and shipping) in the financial year ending March 2017 (FY17) by 23% to INR2.3trn. For FY16, the government had budgeted for infrastructure investment to double from actual spending in FY15. However, except for a pick-up in road construction (up 36% yoy in 1HFY16), project implementation appears to have been weak so far in FY16.

Private-sector investment has also remained weak, given the stretched corporate balance sheets. As a result, steel demand growth in India has remained soft at 4.7% yoy in 9MFY16. We expect steel demand growth to improve slightly to 7%-8% in FY17, supported by a pick-up in government infrastructure spending with better project execution.

However, the steel industry is burdened by overcapacity. Domestic capacity is scheduled to jump by about 15 million tonnes over the 2HFY16-FY17 period, which will exceed a potential 6 million tonne increase in domestic steel demand in FY17. At the same time, global supply continues to outstrip demand. Given the supply-demand growth mismatch, producers are likely to engage in price competition amid weak utilisation levels. Therefore, a recovery in sales realisation and profitability for Indian steelmakers is unlikely before FY18.


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Monday, 07 March 16
INDONESIAN 5700 GAR COAL INDEX DECLINE $0.05 A TON WEEK OVER WEEK
COALspot.com: Average 5000 GAR coal index of Indonesian origin decline 0.28 percent week over week to averaging $38.66 per ton on this past Friday, ...


Monday, 07 March 16
FREIGHT MARKET MOVING POSITIVE; ALL SEGMENTS EXCEPT CAPE SHOWING A FIRM TREND
COALspot.com: The freight market was steady this past week and showing a firm trend for all segments except for Cape index. The Baltic Dry Ind ...


Friday, 04 March 16
GLOBAL ECONOMY'S JITTERS ARE SLOWING DOWN SHIPPING EVEN FURTHER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The global economy’s shaky condition to say the least is now hampering growth and as a result demand for shipping is slowing down, something ...


Friday, 04 March 16
U.S. YEAR-TO-DATE COAL PRODUCTION TOTALED 109.3 MMST; 30.2% LOWER THAN THE COMPARABLE YEAR-TO-DATE COAL PRODUCTION IN 2015 - EIA
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 13.1 million shor ...


Thursday, 03 March 16
BDI FURTHER STRENGTHENING; THE INCREASE IN RATES WAS NOT SUBSTANTIAL
COALspot.com: The BDI closed off on a positive note for a second week in a row, further strengthening the belief that the market might be bottoming ...


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