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Thursday, 07 April 16
CHINA STEEL CAPACITY CUTS FACE SOCIAL, FINANCIAL HURDLES - FITCH RATINGS
 Fitch Ratings says today that the Chinese government's supply-side reform of the steel sector faces immense social and financial challenges. The government earlier this year said it aimed to eliminate 100 million to 150 million tonnes of capacity by 2020. The complete elimination of these capacities will likely result in significant job losses in the labour-intensive sector and huge financial losses, given the highly levered nature of most companies in the industry.
We believe that unless specific actions are taken to address these challenges, rapid capacity elimination in the Chinese steel sector is unlikely. This would in turn mean prices are likely to remain low, resulting in higher liquidity and default risks for steelmakers, many of which expanded rapidly since 2012 funded by short-term debt.
Based on industry productivity norms of 300 tonnes of steel per year per employee in China, elimination of 150 million tonnes of capacity would mean the loss of around 500,000 jobs in the industry, and potentially more in ancillary industries. This number may not appear large relative to China's working population, but the steel industry tends to by highly geographically concentrated. Layoffs in regions where steelmakers are large employers could result in prolonged dampening of related industries such transportation, power generation, and even retail.
Furthermore, the sector is highly financially levered, with the average debt-to-asset ratio at more than 70%. We estimate the industry has total debt of CNY3trn-4trn, excluding upstream funding through payables and unpaid staff costs. Out of this debt, one third is in the form of bank loans. Even the shutdown of 100 million tonnes of capacity, a reduction of less than10% of existing capacity, could significantly hurt lenders.
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Monday, 11 April 16
BDI ROSE TO ITS HIGHEST LEVEL IN FOUR MONTHS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
Friday, 08 April 16
COASTAL ENERGEN CROSSES GENERATION OF 1068 MW AND EXPORT OF 1004 MW FROM ITS 1200 MW IPP
COALspot.com: Coal & Oil (C&O) Group, an India centric Energy & Infrastructure company announced that their Coastal Energen' ...
Friday, 08 April 16
WEEKLY US COAL PRODUCTION ESTIMATES DIP 5.4% TO 11 MMST
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 11 million short ...
Friday, 08 April 16
MINISTER OF ENERGY AND MINERAL RESOURCES OF INDONESIA TO ISSUE REGULATION TO GUARANTEE THE COAL SUPPLY TO ITS 35K POWER PLANT PROJECTS
COALspot.com: In order to guarantee the supply of coal for 35,000 megawatt (mw) coal based power plants ( still in planning stage), the Minister of ...
Thursday, 07 April 16
PANAMAX RATES ARE FIRMING IN BOTH HEMISHEPHERES - FEARNLEYS
Capesize
With a great volume our of west Australia, rates were finally moving to upper 3's. and stabilizing towards the middle of the week in ...
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- Binh Thuan Hamico - Vietnam
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Salva Resources Pvt Ltd - India
- Ministry of Finance - Indonesia
- Barasentosa Lestari - Indonesia
- Semirara Mining Corp, Philippines
- Orica Australia Pty. Ltd.
- Ceylon Electricity Board - Sri Lanka
- Edison Trading Spa - Italy
- White Energy Company Limited
- Pendopo Energi Batubara - Indonesia
- Parry Sugars Refinery, India
- Asmin Koalindo Tuhup - Indonesia
- MS Steel International - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- GMR Energy Limited - India
- Global Business Power Corporation, Philippines
- Bhushan Steel Limited - India
- Baramulti Group, Indonesia
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Manunggal Multi Energi - Indonesia
- Posco Energy - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- New Zealand Coal & Carbon
- The University of Queensland
- Cigading International Bulk Terminal - Indonesia
- Mintek Dendrill Indonesia
- Ministry of Transport, Egypt
- Meenaskhi Energy Private Limited - India
- Power Finance Corporation Ltd., India
- Romanian Commodities Exchange
- Formosa Plastics Group - Taiwan
- Antam Resourcindo - Indonesia
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Heidelberg Cement - Germany
- LBH Netherlands Bv - Netherlands
- Sinarmas Energy and Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Australian Coal Association
- Grasim Industreis Ltd - India
- Bukit Baiduri Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Savvy Resources Ltd - HongKong
- Vizag Seaport Private Limited - India
- Commonwealth Bank - Australia
- PTC India Limited - India
- Latin American Coal - Colombia
- Metalloyd Limited - United Kingdom
- Parliament of New Zealand
- Central Electricity Authority - India
- Attock Cement Pakistan Limited
- Bulk Trading Sa - Switzerland
- European Bulk Services B.V. - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chamber of Mines of South Africa
- Directorate General of MIneral and Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- SMG Consultants - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Vedanta Resources Plc - India
- Jindal Steel & Power Ltd - India
- Sarangani Energy Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Iligan Light & Power Inc, Philippines
- Trasteel International SA, Italy
- GVK Power & Infra Limited - India
- Xindia Steels Limited - India
- South Luzon Thermal Energy Corporation
- Madhucon Powers Ltd - India
- Eastern Coal Council - USA
- TeaM Sual Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Wilmar Investment Holdings
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- Indian Energy Exchange, India
- Intertek Mineral Services - Indonesia
- Tata Chemicals Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Leighton Contractors Pty Ltd - Australia
- Sakthi Sugars Limited - India
- Bhoruka Overseas - Indonesia
- Dalmia Cement Bharat India
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rio Tinto Coal - Australia
- Planning Commission, India
- Georgia Ports Authority, United States
- Goldman Sachs - Singapore
- Kaltim Prima Coal - Indonesia
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- Indo Tambangraya Megah - Indonesia
- Global Green Power PLC Corporation, Philippines
- Star Paper Mills Limited - India
- Uttam Galva Steels Limited - India
- Rashtriya Ispat Nigam Limited - India
- VISA Power Limited - India
- Larsen & Toubro Limited - India
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- London Commodity Brokers - England
- Singapore Mercantile Exchange
- Kepco SPC Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Indogreen Group - Indonesia
- Riau Bara Harum - Indonesia
- Gujarat Sidhee Cement - India
- Thiess Contractors Indonesia
- Ind-Barath Power Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Mines - Canada
- Kapuas Tunggal Persada - Indonesia
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- Holcim Trading Pte Ltd - Singapore
- Carbofer General Trading SA - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Mineral Development Corp Ltd - India
- Directorate Of Revenue Intelligence - India
- Sical Logistics Limited - India
- Indian Oil Corporation Limited
- Bharathi Cement Corporation - India
- Global Coal Blending Company Limited - Australia
- The Treasury - Australian Government
- Borneo Indobara - Indonesia
- Bhatia International Limited - India
- Tamil Nadu electricity Board
- Banpu Public Company Limited - Thailand
- Karaikal Port Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Globalindo Alam Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- IHS Mccloskey Coal Group - USA
- Agrawal Coal Company - India
- San Jose City I Power Corp, Philippines
- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- Petron Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Aditya Birla Group - India
- Independent Power Producers Association of India
- Coalindo Energy - Indonesia
- Mjunction Services Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- Coal and Oil Company - UAE
- Siam City Cement - Thailand
- Makarim & Taira - Indonesia
- Indika Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Renaissance Capital - South Africa
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- Eastern Energy - Thailand
- Kobexindo Tractors - Indoneisa
- Minerals Council of Australia
- Jaiprakash Power Ventures ltd
- Port Waratah Coal Services - Australia
- India Bulls Power Limited - India
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Meralco Power Generation, Philippines
- SMC Global Power, Philippines
- Krishnapatnam Port Company Ltd. - India
- Miang Besar Coal Terminal - Indonesia
- Standard Chartered Bank - UAE
- PNOC Exploration Corporation - Philippines
- Central Java Power - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- PowerSource Philippines DevCo
- Mercuria Energy - Indonesia
- Orica Mining Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- Mercator Lines Limited - India
- Sojitz Corporation - Japan
- Deloitte Consulting - India
- ICICI Bank Limited - India
- Wood Mackenzie - Singapore
- Oldendorff Carriers - Singapore
- Australian Commodity Traders Exchange
- SN Aboitiz Power Inc, Philippines
- Africa Commodities Group - South Africa
- Economic Council, Georgia
- OPG Power Generation Pvt Ltd - India
- Interocean Group of Companies - India
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