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.
|
|
Wednesday, 03 October 18
SHIPPING MARKET INSIGHT - KATERINA RESTIS
The bunker fuel supply and availability landscape is close to its transformation with the enforcement of the IMO’s global 0.5% fuel Sulphur c ...
Tuesday, 02 October 18
PANAMAX: A FURTHER RISE ACROSS ALL MAIN ROUTES THIS WEEK - ALLIED
Capesize
Finally an upward recovery was in sight in the spot market the past few days, after the prolonged negative pressure noted the weeks pr ...
Tuesday, 02 October 18
THE PRICE OF OIL CONTINUES ITS CLIMB AMIDST A SERIES OF CONCERNS REGARDING SUPPLY CONSTRAINTS - GEORGE LAZARIDIS
It has been a busy week for oil traders as the price of oil continues its climb amidst a series of concerns regarding supply constraints.
...
Tuesday, 02 October 18
INDONESIA GETS READY TO MEET INCREASED COAL DEMAND FROM CHINA, FREIGHT TO RESPOND - MIKAL BOE
Indonesian coal suppliers have increased their domestic coal production target by 4.5 percent from a previous 485 million tonnes to a massive 507 m ...
Monday, 01 October 18
SUPRAMAX: A 56,000 DWT FIXED DELIVERY FOR A SURABAYA TRIP WITH REDELIVERY TO WEST COAST INDIA AT $13,500 - THE BALTIC BRIEFING
Capesize
A stop-start market for the big ships with many expectations and few fulfilled. Holidays curtailed trading early in the week, but the ...
|
|
|
Showing 1601 to 1605 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Commonwealth Bank - Australia
- TeaM Sual Corporation - Philippines
- Sakthi Sugars Limited - India
- Independent Power Producers Association of India
- Sical Logistics Limited - India
- Aboitiz Power Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Ind-Barath Power Infra Limited - India
- Orica Mining Services - Indonesia
- Indian Oil Corporation Limited
- IHS Mccloskey Coal Group - USA
- Ceylon Electricity Board - Sri Lanka
- Maharashtra Electricity Regulatory Commission - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- India Bulls Power Limited - India
- Electricity Generating Authority of Thailand
- Manunggal Multi Energi - Indonesia
- Vizag Seaport Private Limited - India
- Medco Energi Mining Internasional
- Formosa Plastics Group - Taiwan
- Samtan Co., Ltd - South Korea
- Karaikal Port Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Singapore Mercantile Exchange
- Bhoruka Overseas - Indonesia
- Siam City Cement - Thailand
- Globalindo Alam Lestari - Indonesia
- Marubeni Corporation - India
- Kepco SPC Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- The Treasury - Australian Government
- Videocon Industries ltd - India
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Georgia Ports Authority, United States
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement PLC, Thailand
- Price Waterhouse Coopers - Russia
- Miang Besar Coal Terminal - Indonesia
- Salva Resources Pvt Ltd - India
- SMC Global Power, Philippines
- PowerSource Philippines DevCo
- Baramulti Group, Indonesia
- PTC India Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Eastern Energy - Thailand
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Wilmar Investment Holdings
- Parliament of New Zealand
- Pipit Mutiara Jaya. PT, Indonesia
- New Zealand Coal & Carbon
- Uttam Galva Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Standard Chartered Bank - UAE
- MS Steel International - UAE
- Kartika Selabumi Mining - Indonesia
- Therma Luzon, Inc, Philippines
- Mintek Dendrill Indonesia
- Banpu Public Company Limited - Thailand
- Energy Link Ltd, New Zealand
- Heidelberg Cement - Germany
- Chettinad Cement Corporation Ltd - India
- Deloitte Consulting - India
- Ministry of Mines - Canada
- SMG Consultants - Indonesia
- Agrawal Coal Company - India
- CIMB Investment Bank - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Essar Steel Hazira Ltd - India
- Aditya Birla Group - India
- Kohat Cement Company Ltd. - Pakistan
- Coal and Oil Company - UAE
- Mjunction Services Limited - India
- Carbofer General Trading SA - India
- Merrill Lynch Commodities Europe
- Thiess Contractors Indonesia
- ICICI Bank Limited - India
- Riau Bara Harum - Indonesia
- Trasteel International SA, Italy
- Bharathi Cement Corporation - India
- GAC Shipping (India) Pvt Ltd
- Renaissance Capital - South Africa
- Kobexindo Tractors - Indoneisa
- White Energy Company Limited
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- Dalmia Cement Bharat India
- Indian Energy Exchange, India
- Attock Cement Pakistan Limited
- Wood Mackenzie - Singapore
- Xindia Steels Limited - India
- Power Finance Corporation Ltd., India
- Krishnapatnam Port Company Ltd. - India
- GVK Power & Infra Limited - India
- Barasentosa Lestari - Indonesia
- Altura Mining Limited, Indonesia
- Directorate Of Revenue Intelligence - India
- VISA Power Limited - India
- Bhushan Steel Limited - India
- Coastal Gujarat Power Limited - India
- Goldman Sachs - Singapore
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- Global Coal Blending Company Limited - Australia
- Malabar Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Semirara Mining Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- TNB Fuel Sdn Bhd - Malaysia
- IEA Clean Coal Centre - UK
- Holcim Trading Pte Ltd - Singapore
- Sinarmas Energy and Mining - Indonesia
- Kumho Petrochemical, South Korea
- Australian Commodity Traders Exchange
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Australian Coal Association
- Kapuas Tunggal Persada - Indonesia
- Meenaskhi Energy Private Limited - India
- European Bulk Services B.V. - Netherlands
- Global Green Power PLC Corporation, Philippines
- Economic Council, Georgia
- Tamil Nadu electricity Board
- Madhucon Powers Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Straits Asia Resources Limited - Singapore
- McConnell Dowell - Australia
- Makarim & Taira - Indonesia
- Mercuria Energy - Indonesia
- Orica Australia Pty. Ltd.
- Energy Development Corp, Philippines
- Simpson Spence & Young - Indonesia
- The State Trading Corporation of India Ltd
- Bhatia International Limited - India
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- Antam Resourcindo - Indonesia
- Ministry of Finance - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Africa Commodities Group - South Africa
- Minerals Council of Australia
- ASAPP Information Group - India
- Cement Manufacturers Association - India
- The University of Queensland
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Transport, Egypt
- Indogreen Group - Indonesia
- Eastern Coal Council - USA
- Tata Chemicals Ltd - India
- Romanian Commodities Exchange
- Bangladesh Power Developement Board
- Coalindo Energy - Indonesia
- Lanco Infratech Ltd - India
- Bulk Trading Sa - Switzerland
- Electricity Authority, New Zealand
- Vedanta Resources Plc - India
- Gujarat Sidhee Cement - India
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- GMR Energy Limited - India
- Chamber of Mines of South Africa
- AsiaOL BioFuels Corp., Philippines
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- Ambuja Cements Ltd - India
- Larsen & Toubro Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Borneo Indobara - Indonesia
- Savvy Resources Ltd - HongKong
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- Global Business Power Corporation, Philippines
- Rio Tinto Coal - Australia
- LBH Netherlands Bv - Netherlands
- Metalloyd Limited - United Kingdom
- Sojitz Corporation - Japan
- Gujarat Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Cigading International Bulk Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- Edison Trading Spa - Italy
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Jindal Steel & Power Ltd - India
- Bukit Makmur.PT - Indonesia
- Maheswari Brothers Coal Limited - India
- Port Waratah Coal Services - Australia
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Mercator Lines Limited - India
- Anglo American - United Kingdom
|
| |
| |
|
