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Thursday, 26 November 20
DECLINE IN COAL EXPORTS ADDS TO NAVAJO-OWNED COMPANY'S PROBLEMS - IEEFA U.S.
 Weak demand and low prices are likely creating steep losses for NTEC
U.S. coal exports to Asia—once heralded as the saving grace for struggling coal producers in the western United States—are facing new strains from low prices and weak demand in the wake of the global COVID-19 crisis.
In its third-quarter financial statement released earlier this month, Westshore Terminals in British Columbia, the primary terminal for U.S. thermal coal bound for the Pacific Rim of Asia, reported a 47% quarter-over-quarter drop in thermal coal exports. Quarterly thermal coal shipments from the terminal fell to their lowest level since 2016, when global coal markets were overwhelmed by a massive supply glut that sent seaborne coal prices crashing.
Even though the Westshore terminal is in Canada, virtually all of its shipments of thermal coal—the type burned in power plants—come from U.S. mines, mostly located in Montana. Data from the U.S. Mine Safety and Health Administration suggest that Montana’s Spring Creek mine, owned by the Navajo Transitional Energy Company (NTEC), bore the brunt of the decline. Coal production at Spring Creek totaled 2.2 million tons during the third quarter of 2020, down from about 3.9 million tons during the year-ago quarter. On an annualized basis, Spring Creek production has now fallen to its lowest level since 2003 (See Figure 1).
Meanwhile, production at the Signal Peak mine, the other major U.S. thermal coal exporter that ships through Westshore, held roughly steady compared to the year-ago quarter. (Signal Peak has been in the news for other reasons, having to do with a fraud and embezzlement scheme perpetrated by former executives. Signal Peak is partially owned by FirstEnergy, also in the news for fraud allegations.) Westshore doesn’t disclose its customer volumes, but Signal Peak’s relatively stable production during the quarter suggests that NTEC’s Spring Creek mine accounted for the bulk of the decline in thermal coal exports through Westshore.
In a related wrinkle, Westshore reported that it took in “$2.6 million [Canadian] of customer shortfall payments” from July through September. This means that at least one of the terminal’s shippers is paying penalties for shipping less coal than promised.
If last quarter’s shortfall payments are indeed coming from NTEC, the company is probably paying even more in penalties to BNSF, the rail company that moves Spring Creek coal to Westshore. (Documents from the 2019 bankruptcy filing of Cloud Peak Energy, the previous owner of the mine, suggest the company paid a little over $25 per ton in rail fees, more than twice as much as Westshore charges to ship a ton of coal.)
Cloud Peak shelled out millions of dollars in such payments to both BNSF and Westshore during times of low international prices, and—ironically enough—frequently shipped coal at a loss to avoid even steeper losses from contractual penalties.
NTEC touted its purchase in 2019 of Powder River Basin mines as a “prudent investment,” pointing to a study (commissioned by the company itself) arguing that Spring Creek exports held the “potential for high profitability.” Yet Cloud Peak had also had made big bets on Spring Creek exports—and those bets helped cement the company’s financial collapse.
Now, NTEC’s gamble on coal exports is backfiring—just as it backfired on Cloud Peak.
This will only worsen difficulties for NTEC, which has recently agreed to an ill-advised expansion of its stake in the aging coal-fired Four Corners power plant in New Mexico and whose core business—coal production for the domestic electricity industry—is in severe decline, and not just because of COVID but because utility companies continue to aggressively abandon coal for cheaper and more modern forms of generation.
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Thursday, 10 September 20
DRY BULK SHIPPING: CHINA'S DEMAND KEEPING THE DRY BULK MARKET GOING - PETER SAND | BIMCO
Overview
An impressive recovery in Chinese dry bulk imports has protected the industry from the effects of falling demand in the rest of the wo ...
Thursday, 10 September 20
TANKER SHIPPING: FREIGHT RATES BACK AT LOSS-MAKING LEVELS AFTER 12 VERY PROFITABLE MONTHS - BIMCO
Overview
A stunningly strong 12 months for the tanker shipping industry is now being replaced by lower freight rates, as lower oil product ...
Thursday, 10 September 20
INDIA'S COAL IMPORTS STUMBLE IN AUGUST, RAISING RISK OF SLOW RECOVERY - REFINITIV | BANCHERO COSTA
After posting a mild recovery in July, India's coal imports have stumbled in August as the South Asian nation battles to restart it ...
Thursday, 10 September 20
THE FIRST 8 MONTHS OF 2020, INDONESIA EXPORTED 217.4 MLN TONNES OF COAL BASED ON REFINITIV - BANCHERO COSTA
The coal market has been hit by a weaker global economy as a result of COVID-19 pandemic and falling industrial electricity demand ...
Wednesday, 09 September 20
MARKET INSIGHT - INTERMODAL
The uneventful summer lull which is coming to an end soon has left its stigma on the newbuilding market, which has already been devastated by the g ...
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- Bahari Cakrawala Sebuku - Indonesia
- The Treasury - Australian Government
- Oldendorff Carriers - Singapore
- Lanco Infratech Ltd - India
- Savvy Resources Ltd - HongKong
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Georgia Ports Authority, United States
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement - Thailand
- Larsen & Toubro Limited - India
- Indika Energy - Indonesia
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Holcim Trading Pte Ltd - Singapore
- Orica Mining Services - Indonesia
- Barasentosa Lestari - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- Merrill Lynch Commodities Europe
- Kepco SPC Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- Karaikal Port Pvt Ltd - India
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- Global Green Power PLC Corporation, Philippines
- CNBM International Corporation - China
- Planning Commission, India
- Chamber of Mines of South Africa
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- Ambuja Cements Ltd - India
- MS Steel International - UAE
- White Energy Company Limited
- Economic Council, Georgia
- Kohat Cement Company Ltd. - Pakistan
- Rio Tinto Coal - Australia
- Latin American Coal - Colombia
- PNOC Exploration Corporation - Philippines
- Bharathi Cement Corporation - India
- Sojitz Corporation - Japan
- Kumho Petrochemical, South Korea
- Metalloyd Limited - United Kingdom
- Vedanta Resources Plc - India
- Siam City Cement PLC, Thailand
- PetroVietnam Power Coal Import and Supply Company
- Global Coal Blending Company Limited - Australia
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Bhatia International Limited - India
- Ministry of Mines - Canada
- Maharashtra Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Simpson Spence & Young - Indonesia
- LBH Netherlands Bv - Netherlands
- Pendopo Energi Batubara - Indonesia
- Kobexindo Tractors - Indoneisa
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Thiess Contractors Indonesia
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Singapore Mercantile Exchange
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Intertek Mineral Services - Indonesia
- European Bulk Services B.V. - Netherlands
- Kideco Jaya Agung - Indonesia
- Tata Chemicals Ltd - India
- Gujarat Sidhee Cement - India
- Eastern Energy - Thailand
- Globalindo Alam Lestari - Indonesia
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Binh Thuan Hamico - Vietnam
- Samtan Co., Ltd - South Korea
- TeaM Sual Corporation - Philippines
- Mintek Dendrill Indonesia
- Coastal Gujarat Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Electricity Authority, New Zealand
- CIMB Investment Bank - Malaysia
- Toyota Tsusho Corporation, Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Cement Manufacturers Association - India
- Attock Cement Pakistan Limited
- Miang Besar Coal Terminal - Indonesia
- Africa Commodities Group - South Africa
- Interocean Group of Companies - India
- Minerals Council of Australia
- Australian Commodity Traders Exchange
- Sindya Power Generating Company Private Ltd
- Manunggal Multi Energi - Indonesia
- Indian Oil Corporation Limited
- Star Paper Mills Limited - India
- Medco Energi Mining Internasional
- Ind-Barath Power Infra Limited - India
- India Bulls Power Limited - India
- The University of Queensland
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Edison Trading Spa - Italy
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- Aditya Birla Group - India
- Wilmar Investment Holdings
- Commonwealth Bank - Australia
- Parry Sugars Refinery, India
- Bhoruka Overseas - Indonesia
- Bayan Resources Tbk. - Indonesia
- VISA Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Sarangani Energy Corporation, Philippines
- Posco Energy - South Korea
- Antam Resourcindo - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Banpu Public Company Limited - Thailand
- Grasim Industreis Ltd - India
- Indo Tambangraya Megah - Indonesia
- SMC Global Power, Philippines
- Iligan Light & Power Inc, Philippines
- San Jose City I Power Corp, Philippines
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Timah Investasi Mineral - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Bulk Trading Sa - Switzerland
- IHS Mccloskey Coal Group - USA
- PTC India Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercuria Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- London Commodity Brokers - England
- Kartika Selabumi Mining - Indonesia
- Indonesian Coal Mining Association
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- Madhucon Powers Ltd - India
- Agrawal Coal Company - India
- Ceylon Electricity Board - Sri Lanka
- Directorate General of MIneral and Coal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- GVK Power & Infra Limited - India
- PowerSource Philippines DevCo
- GMR Energy Limited - India
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- Heidelberg Cement - Germany
- Sakthi Sugars Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Baiduri Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Semirara Mining and Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Indogreen Group - Indonesia
- ICICI Bank Limited - India
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining Corp, Philippines
- Straits Asia Resources Limited - Singapore
- Parliament of New Zealand
- Deloitte Consulting - India
- Therma Luzon, Inc, Philippines
- Meralco Power Generation, Philippines
- SN Aboitiz Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- The State Trading Corporation of India Ltd
- Sical Logistics Limited - India
- Jaiprakash Power Ventures ltd
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Electricity Generating Authority of Thailand
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- Independent Power Producers Association of India
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
- Anglo American - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Marubeni Corporation - India
- South Luzon Thermal Energy Corporation
- Romanian Commodities Exchange
- Australian Coal Association
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- New Zealand Coal & Carbon
- Dalmia Cement Bharat India
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
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