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Tuesday, 06 July 21
INDONESIAN 4,200 INDEX HAS ALSO INCREASED TO OVER USD50 PER TONNE SINCE MAY THIS YEAR REFLECTING STRONG CHINESE IMPORT DEMAND - FITCH RATINGS
Fitch RatingsPrice Surge Since March
APAC thermal coal has resumed its price surge since March this year. The  benchmark Newcastle 6,000kcal/kg grade coal increased by 52% in  the past four months to USD136/tonne by end-June, Fitch Ratings said in its latest APAC Thermal Coal Watch report.
 
The high prices are largely supported by tight supply in China against the backdrop of a global commodities bull market, while 1Q21 import volume from major Asian importing countries remained slightly lower than 2019 and 2020 levels. 
 
Supply Shortage in China
APAC Thermal Coal Watch report noted that, China’s benchmark Qinhuangdao 5,500kcal/kg coal price made a drastic return to nearly CNY1,000/tonne by end-June, after a correction to CNY566/tonne at  end February. The 6M21 average price reached CNY792/tonne. China’s power generation in 5M21 rose by14.9% yoy, which translated to a solid average annual growth  of 6.9% from 5M19. Meanwhile,  supply remains subdued due to limited new capacity in 5M21 and safety and environmental speculations from local governments. 
 
Inventories at power plants and coal mines are at relatively low levels, further exposing prices to strong volatility. 
 
More Production Expected in 2H21
APAC Thermal Coal Watch report also noted, China’s National Development and Reform Commission (NDRC) expects coal prices to enter a downward trend from July, according to a recent interview of a NDRC  official by state-owned Xinhua News Agency. The NDRC official revealed that more supply was arranged, including resumed production from previously suspended capacity and larger approved quota for some operational mines. China’s coal production edged up by 1.3% in May from April but was still 7.3% below the high level in December last year. 
 
Indonesian Coal Price Improves
According to APAC Thermal Coal Watch report of Fitch Ratings, the Indonesian 4,200kcal index has also increased to over USD50/tonne since May this year reflecting strong Chinese import demand and the soft cap on Australian coal. However, Fitch expects prices  to taper off througout  the rest of the year following improving  Chinese  production  and  easing demand. The1Q21 performance has improved significantly for Indonesian miners and mining contractors.


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Friday, 13 August 21
INDONESIA’S COAL EXPORTS TO JAPAN DECLINED BY -26.3% YOY TO 11.9 MLN TONNES IN THE FIRST 7 MONTHS OF 2021; STILL THE SECOND LARGEST SOURCE FOR JAPAN’S COAL IMPORTS IS INDONESIA - BANCHERO COSTA
2020 proved to be a truly terrible year for global seaborne coal trade. Total global loadings in the 12 months of 2020 were down -12.7% year-on-yea ...


Thursday, 12 August 21
ONLY 3 VLCCS SOLD FOR DEMOLITION IN 2021 AS SECONDHAND PRICES TEMPT - BIMCO
During the first seven months of 2021, only three actively trading Very Large Crude Carriers (VLCCs) have been sold for demolition. The current mar ...


Wednesday, 11 August 21
U.S: EIA EXPECTS COAL EXPORTS TO TOTAL 90 MMST IN 2021, 30% INCREASE FROM 2020
Coal production in EIA's forecast totals 607 million short tons (MMst) in 2021, an increase of 13% over 2020.    EIA is also ...


Wednesday, 11 August 21
MARKET INSIGHT - INTERMODAL
Energy is at the core of the global climate dialogue as the climate challenge is essentially an energy challenge. Policy experts around the world a ...


Tuesday, 10 August 21
34 INDONESIAN COAL COMPANIES TEMPORARILY BANNED FOR COAL EXPORTS
The Ministry of Energy and Mineral Resources (ESDM) has imposed sanctions in the form of a coal export ban for 34 coal companies as reported by CNB ...


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