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Tuesday, 16 June 20
HIGHER IRON ORE PRICES OFFSET CORONAVIRUS-DRIVEN PRODUCTION RISK - FITCH RATINGS
 Lower iron ore production in Brazil, resulting from rising coronavirus infections, should only marginally affect the cash flow of Vale and other global mining companies due to higher prices, says Fitch Ratings. More than 10% of Vale’s production was affected last week when a local court suspended operations at its Itabira Complex due to employees testing positive for the virus.
Iron ore prices declined earlier this year due to demand concerns but later rebounded and are being supported by supply constraints caused by Vale’s 2019 dam accident and weather-related production disruptions. Prices increased to above USD100/dry metric ton (dmt) due to the news regarding the suspension.
Vale maintained its 2020 production guidance at 310 metric tons (mt) to 330mt with production expected to resume once all employees are tested and the company ensures no infected workers are working at the facilities. CRU Group believes it will be increasingly difficult for Vale to meet volume guidance considering the suspension, weak production in the Northern System and the effect heavy rainfall had on output at the start of 2020. The potential for additional infections increases employee absenteeism and production risk, as the number of people available to work in mines and processing plants falls, and other municipalities could take similar actions to stem the spread of the virus.
Material Environmental, Social and Governance (ESG) shortcomings, particularly in the areas of executing strategy and maintaining the well-being of employees, constrain Vale’s ‘BBB-’ credit ratings with a Stable Outlook. However, Vale is a low-cost producer with a leading market position, abundant reserves, and high-grade iron that commands a market premium, which reduces credit implications.
Fitch projects Vale will generate more than USD14 billion of EBITDA in 2020, assuming iron ore prices average USD75/dmt. FCF should be about USD5.0 billion, assuming capex is about USD4.7 billion and dividends are USD3.0 billion. Vale’s 2020 net debt/EBITDA is projected to be around 0.5x. These forecasts compare with USD17 billion of EBITDA, USD7 billion of FCF and net debt/EBITDA of 0.3x for the LTM ended March 31. Forecasts could prove conservative, given the rise in iron ore prices.
Similar dynamics apply to Anglo American’s operations at Minas-Rio. Fitch used for its rating case the bottom of existing production guidance of 22 million tonnes – 24 million tonnes and a price assumption of USD75/tonne in 2020 for the 62% Fe benchmark cost and freight (CFR) China price. The company has scheduled a one month production stoppage for inspection of its slurry pipeline for second-half 2020. If there were any pandemic-related disruptions in the coming months it might be possible to use the slot to re-schedule the maintenance work. Overall, based on production figures to date, upside from actual prices realized and material Brazilian real depreciation, there is unlikely to be any cash flow downside for the earnings outlook from a temporary disruption, if it occurs at Minas-Rio, to the existing rating case.
CRU’s forecast for benchmark 62% Fe fines CFR China is USD80/dmt as of May 2020. Iron ore demand in China remains robust as rising steel prices and margins for hot rolled coil producers above 10% encourage steel production. CRU expects strong steel production ahead of the wet season in southern China, which typically slows demand from the construction sector. Steel mills in China continue to operate with exceptionally low inventories and recent data shows mill inventories are declining further while port stocks remain steady at 108mt.
Source: Fitch Ratings
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Wednesday, 17 June 20
MARKET INSIGHT - INTERMODAL
After experiencing record earnings during the first half of the year, the focus of headlines concerning the tanker market has shifted from the deve ...
Wednesday, 17 June 20
KOREA SOUTHERN POWER CO INVITED 80000 MT OF LOW CALORIFIC VALUE COAL FOR AUGUST 1H, 2020 LOADING
COALspot.com: Korea Southern Power Co., Ltd. (KOSPO) has issued an International tender for 80,000 Metric Tons (MT) Min 4,200 kcal/kg - Max. ...
Tuesday, 16 June 20
A GLOBAL ECONOMIC SLUMP: WHAT WILL IT MEAN FOR METALS AND MINING? - WOOD MACKENZIE
Back before coronavirus knocked “normal” out cold, the key issues for miners were sub-investment prices, rising requirements for ESG an ...
Tuesday, 16 June 20
CHINA TAIYUAN COAL TRANSACTION PRICE INDEX UP 0.58 PCT - XINHUA
China Taiyuan coal transaction price index stood at 124.43 points Monday, up 0.58 percent week on week.
The index, released by China ...
Tuesday, 16 June 20
SHALE SHOCKED - WOOD MACKENZIE
Capturing shut-ins in real time
Oil markets are searching for balance as the world reflects on the impact of the COVID-19 pandemic. ...
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Showing 906 to 910 news of total 6871 |
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- Lanco Infratech Ltd - India
- European Bulk Services B.V. - Netherlands
- Bahari Cakrawala Sebuku - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Star Paper Mills Limited - India
- Meralco Power Generation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- ASAPP Information Group - India
- Mjunction Services Limited - India
- The University of Queensland
- Gujarat Mineral Development Corp Ltd - India
- Trasteel International SA, Italy
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- Semirara Mining Corp, Philippines
- Dalmia Cement Bharat India
- Ambuja Cements Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- Kohat Cement Company Ltd. - Pakistan
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Sojitz Corporation - Japan
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- Marubeni Corporation - India
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- Chettinad Cement Corporation Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Xindia Steels Limited - India
- Kapuas Tunggal Persada - Indonesia
- Gujarat Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Jaiprakash Power Ventures ltd
- Barasentosa Lestari - Indonesia
- Georgia Ports Authority, United States
- Ministry of Mines - Canada
- Salva Resources Pvt Ltd - India
- Rio Tinto Coal - Australia
- Thai Mozambique Logistica
- GN Power Mariveles Coal Plant, Philippines
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Kartika Selabumi Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Directorate Of Revenue Intelligence - India
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- Coalindo Energy - Indonesia
- Larsen & Toubro Limited - India
- Bhatia International Limited - India
- Central Java Power - Indonesia
- Ministry of Transport, Egypt
- OPG Power Generation Pvt Ltd - India
- Carbofer General Trading SA - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karbindo Abesyapradhi - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Planning Commission, India
- Kepco SPC Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Ceylon Electricity Board - Sri Lanka
- Baramulti Group, Indonesia
- Essar Steel Hazira Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Vedanta Resources Plc - India
- Neyveli Lignite Corporation Ltd, - India
- IEA Clean Coal Centre - UK
- Kalimantan Lumbung Energi - Indonesia
- Intertek Mineral Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- SMG Consultants - Indonesia
- Kobexindo Tractors - Indoneisa
- Bhushan Steel Limited - India
- Anglo American - United Kingdom
- Orica Mining Services - Indonesia
- Bangladesh Power Developement Board
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- Gujarat Sidhee Cement - India
- Heidelberg Cement - Germany
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- Pendopo Energi Batubara - Indonesia
- Indika Energy - Indonesia
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- LBH Netherlands Bv - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Indian Oil Corporation Limited
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- Standard Chartered Bank - UAE
- McConnell Dowell - Australia
- Bayan Resources Tbk. - Indonesia
- London Commodity Brokers - England
- Offshore Bulk Terminal Pte Ltd, Singapore
- Billiton Holdings Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Madhucon Powers Ltd - India
- PowerSource Philippines DevCo
- Bharathi Cement Corporation - India
- Port Waratah Coal Services - Australia
- Ind-Barath Power Infra Limited - India
- Deloitte Consulting - India
- Attock Cement Pakistan Limited
- Aboitiz Power Corporation - Philippines
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- SMC Global Power, Philippines
- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
- Makarim & Taira - Indonesia
- Jindal Steel & Power Ltd - India
- Mercator Lines Limited - India
- Aditya Birla Group - India
- Cement Manufacturers Association - India
- Petrochimia International Co. Ltd.- Taiwan
- Bulk Trading Sa - Switzerland
- Global Business Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- International Coal Ventures Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Renaissance Capital - South Africa
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Economic Council, Georgia
- Straits Asia Resources Limited - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Orica Australia Pty. Ltd.
- Rashtriya Ispat Nigam Limited - India
- Metalloyd Limited - United Kingdom
- AsiaOL BioFuels Corp., Philippines
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- PNOC Exploration Corporation - Philippines
- ICICI Bank Limited - India
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Africa Commodities Group - South Africa
- Energy Link Ltd, New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Parliament of New Zealand
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- Tata Chemicals Ltd - India
- Parry Sugars Refinery, India
- Alfred C Toepfer International GmbH - Germany
- Electricity Generating Authority of Thailand
- Australian Commodity Traders Exchange
- Merrill Lynch Commodities Europe
- Ministry of Finance - Indonesia
- Interocean Group of Companies - India
- Australian Coal Association
- Romanian Commodities Exchange
- CIMB Investment Bank - Malaysia
- Videocon Industries ltd - India
- Karaikal Port Pvt Ltd - India
- White Energy Company Limited
- Vizag Seaport Private Limited - India
- Eastern Coal Council - USA
- San Jose City I Power Corp, Philippines
- VISA Power Limited - India
- Tamil Nadu electricity Board
- India Bulls Power Limited - India
- MS Steel International - UAE
- Banpu Public Company Limited - Thailand
- Bhoruka Overseas - Indonesia
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PTC India Limited - India
- The Treasury - Australian Government
- CNBM International Corporation - China
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
- Coal and Oil Company - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Iligan Light & Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Oldendorff Carriers - Singapore
- GAC Shipping (India) Pvt Ltd
- Independent Power Producers Association of India
- Uttam Galva Steels Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asmin Koalindo Tuhup - Indonesia
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