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Friday, 16 March 18
INDONESIA COAL PRICE CAP POSES LIMITED RISKS TO PRODUCERS : FITCH
 Indonesia’s cap on the benchmark price of coal sold to the domestic electricity sector is unlikely to have a significant impact on the credit profiles of Fitch-rated mining firms, which export most of their production, says Fitch Ratings. In any case, our ratings are based on average benchmark price forecasts that are broadly in line with the cap of USD70/tonne imposed until end-2019, and so will not be affected.
The price cap, announced last week and set to apply from mid-March, is part of the government’s strategy to ensure low prices for electricity consumers as it looks to support industrial competitiveness and household disposable incomes. It froze electricity prices charged to industrial consumers earlier in the year, preventing Perusahaan Listrik Negara (PLN), the state-owned monopoly distributor, from passing on rising costs as coal prices were pushed up by an unusually cold Chinese winter. The Indonesian coal price benchmark, Harga Batubara Acuan (HBA), has exceeded USD95/tonne since January 2018, which might have necessitated an increase in government subsidies to PLN if the price cap had not been imposed.
The new regulations will mean coal miners miss out on some of the short-term upside from high prevailing coal prices, to the extent that they sell production to the domestic market. The government sets domestic market obligations for miners to ensure they meet local demand, which prevents them from simply diverting output toward the overseas market.
That said, only around one-fifth of Indonesia’s 461 million tonnes of coal production was sold in the domestic market in 2017, which suggests any loss of revenue will be limited. Indika would be the most affected among our rated coal miners, as around 15% of its volumes are sold to the domestic power sector. GEO Energy, Golden Energy Resources, ABM Investama and PT Toba Bara sell less than 10% of volumes to the domestic power sector. Domestic market obligations are likely to increase over the medium term, as the government looks to contain production and conserve coal resources for local power needs, but a sharp rise next year is unlikely.
Coal firms will therefore continue to receive the market price for the majority of their production. As a result, their financial performance might still exceed our expectations at the start of the year, when we had forecast an average Newcastle benchmark (6000 kcal) price of USD72/tonne in 2018 and USD67/tonne in 2019. The HBA on which the regulations are based broadly reflect Newcastle prices.
The new price regime does not include a floor on prices, and so provides no benefit to the mining firms in the event of a downturn. Prices will continue to fluctuate as before if the market price drops below USD70/tonne.
The price ceiling is unlikely to have any meaningful impact on PLN’s standalone credit profile. We would have expected the government to compensate PLN for losses through subsidies if high coal prices and fixed electricity prices had caused under recoveries. PLN’s IDR of ‘BBB’ is equalised with the sovereign rating due to its very strong government linkages.
Source: Fitch Ratings
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Wednesday, 18 April 18
SHIPPING MARKET INSIGHT - STELIOS KOLLINTZAS
The return of traders and charterers from the Easter festivities came along with a slight increase in activity across the edible oil markets. Howev ...
Monday, 16 April 18
MINISTER IGNASIUS JONAN SPEAKS HIS MIND AT INDONESIA MINER - IAN WOLLFF
The Minister for Energy and Mineral resources, Ignasius Jonan, delivered a key note address at the Indonesia Miner conference in Jakarta on the 11 ...
Thursday, 12 April 18
THE PERFECT STORM FOR THE BIG SHIPS - THE BALTIC BRIEFING
Capesize
The perfect storm for the big ships: with holidays, force majeure in two ore exporting ports and bad weather undermining the market. A l ...
Thursday, 12 April 18
SHIPPING CAN MANAGE US-CHINA TARIFFS, BUT RISKS RISING - FITCH
Container and, to some extent, dry bulk would probably be the shipping segments most affected by the recently announced US and China tariffs, Fitch ...
Thursday, 12 April 18
SUPRAS HAVE FIXED MID $11K FOR AN INDO RV TO S. CHINA DELIVERY PHILIPPINES - FEARNLEYS
Supramax
Slow week with little light for improving rates. ECSA to Far East still around $15k + bb and same to Med ca $14k, says Fearnleys in its ...
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- Electricity Generating Authority of Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Price Waterhouse Coopers - Russia
- Essar Steel Hazira Ltd - India
- Toyota Tsusho Corporation, Japan
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Mercuria Energy - Indonesia
- White Energy Company Limited
- Alfred C Toepfer International GmbH - Germany
- Renaissance Capital - South Africa
- Kaltim Prima Coal - Indonesia
- Thai Mozambique Logistica
- Singapore Mercantile Exchange
- Bhatia International Limited - India
- Lanco Infratech Ltd - India
- Savvy Resources Ltd - HongKong
- SMC Global Power, Philippines
- Parry Sugars Refinery, India
- Ind-Barath Power Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Sarangani Energy Corporation, Philippines
- Formosa Plastics Group - Taiwan
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining Corp, Philippines
- Videocon Industries ltd - India
- Altura Mining Limited, Indonesia
- Kobexindo Tractors - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Marubeni Corporation - India
- Meenaskhi Energy Private Limited - India
- Jaiprakash Power Ventures ltd
- Planning Commission, India
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- Manunggal Multi Energi - Indonesia
- Gujarat Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- Borneo Indobara - Indonesia
- Heidelberg Cement - Germany
- Petron Corporation, Philippines
- Port Waratah Coal Services - Australia
- ICICI Bank Limited - India
- ASAPP Information Group - India
- Jorong Barutama Greston.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement PLC, Thailand
- Wood Mackenzie - Singapore
- Kartika Selabumi Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- Deloitte Consulting - India
- The Treasury - Australian Government
- Medco Energi Mining Internasional
- Global Coal Blending Company Limited - Australia
- Metalloyd Limited - United Kingdom
- Africa Commodities Group - South Africa
- Edison Trading Spa - Italy
- Parliament of New Zealand
- Eastern Energy - Thailand
- Chettinad Cement Corporation Ltd - India
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- PowerSource Philippines DevCo
- Bukit Asam (Persero) Tbk - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Energy Development Corp, Philippines
- Sakthi Sugars Limited - India
- San Jose City I Power Corp, Philippines
- Indonesian Coal Mining Association
- Trasteel International SA, Italy
- European Bulk Services B.V. - Netherlands
- Commonwealth Bank - Australia
- Thiess Contractors Indonesia
- Globalindo Alam Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- Star Paper Mills Limited - India
- OPG Power Generation Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Gujarat Sidhee Cement - India
- The University of Queensland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sical Logistics Limited - India
- Eastern Coal Council - USA
- MS Steel International - UAE
- Chamber of Mines of South Africa
- GMR Energy Limited - India
- PTC India Limited - India
- Bulk Trading Sa - Switzerland
- Barasentosa Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Binh Thuan Hamico - Vietnam
- Bhoruka Overseas - Indonesia
- Carbofer General Trading SA - India
- Sree Jayajothi Cements Limited - India
- Sojitz Corporation - Japan
- Independent Power Producers Association of India
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Interocean Group of Companies - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- Indika Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- Coalindo Energy - Indonesia
- Meralco Power Generation, Philippines
- Posco Energy - South Korea
- Mintek Dendrill Indonesia
- Vedanta Resources Plc - India
- Kepco SPC Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Madhucon Powers Ltd - India
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Uttam Galva Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Malabar Cements Ltd - India
- Tamil Nadu electricity Board
- Timah Investasi Mineral - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Larsen & Toubro Limited - India
- Baramulti Group, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Orica Australia Pty. Ltd.
- McConnell Dowell - Australia
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- AsiaOL BioFuels Corp., Philippines
- Sindya Power Generating Company Private Ltd
- Indo Tambangraya Megah - Indonesia
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Kumho Petrochemical, South Korea
- Salva Resources Pvt Ltd - India
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Wilmar Investment Holdings
- Mjunction Services Limited - India
- Ministry of Finance - Indonesia
- Mercator Lines Limited - India
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- Banpu Public Company Limited - Thailand
- Electricity Authority, New Zealand
- Energy Link Ltd, New Zealand
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- Australian Coal Association
- IEA Clean Coal Centre - UK
- Cigading International Bulk Terminal - Indonesia
- London Commodity Brokers - England
- Merrill Lynch Commodities Europe
- Global Green Power PLC Corporation, Philippines
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Global Business Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- Indogreen Group - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- VISA Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Australian Commodity Traders Exchange
- Minerals Council of Australia
- Rio Tinto Coal - Australia
- Straits Asia Resources Limited - Singapore
- South Luzon Thermal Energy Corporation
- Maharashtra Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Transport, Egypt
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- TeaM Sual Corporation - Philippines
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Intertek Mineral Services - Indonesia
- Grasim Industreis Ltd - India
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- GVK Power & Infra Limited - India
- Central Java Power - Indonesia
- Vizag Seaport Private Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- Bukit Makmur.PT - Indonesia
- Xindia Steels Limited - India
- Standard Chartered Bank - UAE
- Romanian Commodities Exchange
- Kohat Cement Company Ltd. - Pakistan
- Attock Cement Pakistan Limited
- Kalimantan Lumbung Energi - Indonesia
- Riau Bara Harum - Indonesia
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