We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 28 September 18
FITCH RATINGS: METALLURGICAL COAL MINERS MAY CURB COSTS AS PRICES SLIP
Strong cost inflation in the global metallurgical coal sector suggests that miners may focus on cost controls as prices decline from their current high levels over the next 18 months, say Fitch Ratings and CRU. However, mining companies rated by Fitch are well-positioned for any potential squeeze on margins, as their costs are relatively low by global standards and, in most cases, their diversified business operations limit exposure to the sector.
CRU estimates that global costs in the metallurgical coal sector increased by 18% in 2017 and continued to rise in 2018. Severe weather has played a role in Australia, causing supply-chain disruption that led to demurrage penalties and increased storage costs for unshipped coal. However, costs have also been pushed up globally by higher oil prices and attempts by mining companies to maximise production to take advantage of high prices.
Coking coal prices are currently sufficiently high that cost inflation has not undermined profitability. CRU estimates that the seaborne industry generated an average cash margin of 40% in 2016-2017, and profitability has remained very strong this year.
The metallurgical coal market is unlikely to become oversupplied in the near term, and Fitch does not expect prices to fall deep into the cost curve, as they did during 2014-2016. However, prices have already eased off from their peak of USD260/tonne in 4Q16, and are likely to decline further as supply constraints continue to ease. Fitch’s current assumptions are that hard coking coal prices will average USD185/tonne this year and USD140/tonne thereafter. These declines could put pressure on some less competitive mining companies to reduce costs to protect margins.
Among Fitch-rated companies, Teck Resources (BB+/Positive) has the largest exposure to the metallurgical coal sector, which accounted for 60% of its segment EBITDA in the 12 months to 30 June 2018. The company is among those that have increased use of contractors and rented more mining equipment to raise short-term output, which has pushed up marginal costs. Nevertheless, Teck is still in the lower half of the global cost curve (FOB port) and its costs remain lower in US dollar terms than in 2014. Teck has also taken advantage of strong margins and cash flow to reduce leverage. The main credit issue facing the company is the prospect of continued project spending and its funding resulting in weaker cash flows and higher financial leverage.
BHP Billiton (A/Stable) and Anglo American (BBB-/Stable) also have significant metallurgical coal assets, mostly located in Australia, where coal mines are generally relatively low cost by global standards. BHP and Anglo also have diversified operations, with metallurgical coal accounting for only around 16% of BHP Billiton’s revenue and 17% of Anglo’s in the financial year ending June 2017. There could be increased focus on improving efficiency in the Australian coal sector, as already signalled by some companies, but CRU and the Australian government expect production to continue to grow strongly over the next four years.
Meanwhile, mining service companies and earthmoving equipment manufacturers should continue to benefit from rising demand and a better pricing environment as miners continue with new projects and increase production. Emeco (B/Stable), which has the largest exposure to metallurgical coal among Fitch-rated companies, reported improved EBITDA margin as the commodity sector recovered. It also improved its leverage position. Further leverage improvements are likely in 2019-2021 due to equity-funded acquisitions and a tight rental equipment market in Australia.
Source: Fitch Ratings
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Saturday, 20 October 18
PANAMAX: THE PACIFIC SAW A LARGE VOLUME OF FIXING, WITH INDONESIA AGAIN THE DRIVING FORCE - THE BALTIC BRIEFING
Capesize
A positive end to last week after a shaky start, with a Coaltrans taking participants out of the market early on and with rates slippi ...
Thursday, 18 October 18
SUPRAMAX: INDO/WC INDIA SUPRAS ARE FIXING AROUND MID $14000S P/D BASIS SPORE DELIVERY
Capesize
The volatile Cape market continues this week, especially in the Pacific says Fearnleys in its latest weekly report.
...
Thursday, 18 October 18
COAL SHORTAGE HITS POWER SECTOR AGAIN; HOW INDIA CAN GET ITS PRODUCTION RIGHT - ANIL SWARUP
By convincing states of the value proposition of increased production, the record production of Fy15 & Fy16 can be emulated.
The ...
Thursday, 18 October 18
CHINA POWER REFORM NEUTRAL ON GRIDS, PRESSURES IPP MARGINS - FITCH RATINGS
China's power sector reform has a broadly neutral impact on transmission grids although it will pressure the power producers' margins, says ...
Wednesday, 17 October 18
ESCROW SERVICE FOR BALTIC MEMBERS NOW LIVE
The Baltic Exchange’s Escrow Service for its members to hold deposits for ship sale transactions goes live today (15 October). The service is ...
|
|
|
Showing 1586 to 1590 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Sindya Power Generating Company Private Ltd
- Orica Australia Pty. Ltd.
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ind-Barath Power Infra Limited - India
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- PNOC Exploration Corporation - Philippines
- Orica Mining Services - Indonesia
- Uttam Galva Steels Limited - India
- Parliament of New Zealand
- IEA Clean Coal Centre - UK
- Samtan Co., Ltd - South Korea
- Karbindo Abesyapradhi - Indoneisa
- Indogreen Group - Indonesia
- Mintek Dendrill Indonesia
- Intertek Mineral Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- South Luzon Thermal Energy Corporation
- Aditya Birla Group - India
- Electricity Authority, New Zealand
- European Bulk Services B.V. - Netherlands
- Eastern Energy - Thailand
- Riau Bara Harum - Indonesia
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- Coastal Gujarat Power Limited - India
- Directorate Of Revenue Intelligence - India
- Cigading International Bulk Terminal - Indonesia
- Vedanta Resources Plc - India
- Africa Commodities Group - South Africa
- Medco Energi Mining Internasional
- MS Steel International - UAE
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Siam City Cement - Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Tata Chemicals Ltd - India
- Tamil Nadu electricity Board
- Energy Development Corp, Philippines
- PowerSource Philippines DevCo
- Gujarat Electricity Regulatory Commission - India
- Chamber of Mines of South Africa
- London Commodity Brokers - England
- Edison Trading Spa - Italy
- Maheswari Brothers Coal Limited - India
- Mercator Lines Limited - India
- Minerals Council of Australia
- Aboitiz Power Corporation - Philippines
- Coal and Oil Company - UAE
- Grasim Industreis Ltd - India
- Salva Resources Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Dalmia Cement Bharat India
- Sinarmas Energy and Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Kobexindo Tractors - Indoneisa
- Cement Manufacturers Association - India
- CNBM International Corporation - China
- Kepco SPC Power Corporation, Philippines
- GMR Energy Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thai Mozambique Logistica
- Kalimantan Lumbung Energi - Indonesia
- Baramulti Group, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Wilmar Investment Holdings
- White Energy Company Limited
- Ambuja Cements Ltd - India
- Ministry of Transport, Egypt
- Savvy Resources Ltd - HongKong
- Planning Commission, India
- Anglo American - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- Chettinad Cement Corporation Ltd - India
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Bhoruka Overseas - Indonesia
- Sojitz Corporation - Japan
- Ministry of Finance - Indonesia
- Eastern Coal Council - USA
- The University of Queensland
- TNB Fuel Sdn Bhd - Malaysia
- Global Green Power PLC Corporation, Philippines
- New Zealand Coal & Carbon
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Therma Luzon, Inc, Philippines
- SMG Consultants - Indonesia
- Altura Mining Limited, Indonesia
- Indonesian Coal Mining Association
- Globalindo Alam Lestari - Indonesia
- Mjunction Services Limited - India
- Malabar Cements Ltd - India
- Central Electricity Authority - India
- Kartika Selabumi Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Krishnapatnam Port Company Ltd. - India
- Goldman Sachs - Singapore
- Gujarat Sidhee Cement - India
- Kapuas Tunggal Persada - Indonesia
- Ceylon Electricity Board - Sri Lanka
- SMC Global Power, Philippines
- Banpu Public Company Limited - Thailand
- Jindal Steel & Power Ltd - India
- Pendopo Energi Batubara - Indonesia
- Electricity Generating Authority of Thailand
- Renaissance Capital - South Africa
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- TeaM Sual Corporation - Philippines
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Independent Power Producers Association of India
- Oldendorff Carriers - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Indo Tambangraya Megah - Indonesia
- Commonwealth Bank - Australia
- Semirara Mining and Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Miang Besar Coal Terminal - Indonesia
- Bharathi Cement Corporation - India
- Borneo Indobara - Indonesia
- Antam Resourcindo - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Barasentosa Lestari - Indonesia
- Power Finance Corporation Ltd., India
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Videocon Industries ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Standard Chartered Bank - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Straits Asia Resources Limited - Singapore
- ICICI Bank Limited - India
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Petron Corporation, Philippines
- Price Waterhouse Coopers - Russia
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- PTC India Limited - India
- Bangladesh Power Developement Board
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- Latin American Coal - Colombia
- Interocean Group of Companies - India
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Singapore Mercantile Exchange
- Australian Coal Association
- LBH Netherlands Bv - Netherlands
- SN Aboitiz Power Inc, Philippines
- The Treasury - Australian Government
- International Coal Ventures Pvt Ltd - India
- VISA Power Limited - India
- Rio Tinto Coal - Australia
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- ASAPP Information Group - India
- Xindia Steels Limited - India
- Bhatia International Limited - India
- India Bulls Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Kaltim Prima Coal - Indonesia
- Sakthi Sugars Limited - India
- Sarangani Energy Corporation, Philippines
- Indika Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Karaikal Port Pvt Ltd - India
- Posco Energy - South Korea
- Bukit Makmur.PT - Indonesia
- Larsen & Toubro Limited - India
- San Jose City I Power Corp, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- McConnell Dowell - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Global Business Power Corporation, Philippines
- Georgia Ports Authority, United States
- Simpson Spence & Young - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Port Waratah Coal Services - Australia
- Jaiprakash Power Ventures ltd
- Manunggal Multi Energi - Indonesia
- Lanco Infratech Ltd - India
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- AsiaOL BioFuels Corp., Philippines
- Toyota Tsusho Corporation, Japan
- Kohat Cement Company Ltd. - Pakistan
|
| |
| |
|
