We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 10 November 23
COAL USE AT U.S. POWER PLANTS CONTINUES DOWNWARD SPIRAL; FULL IMPACT ON MINES TO BE FELT IN 2024 - IEEFA
 This year, the use of coal by the U.S.’s power producers has been so anemic that the fuel has not achieved a 20% market share in any month so far, and the current outlook predicts low levels for the rest of the year. To put that into perspective, coal’s power market share had never been less than 20% in any month before 2020, according to the U.S. Energy Information Administration (EIA).
In July 2023, for example, coal hit its high point for the year so far, providing 19.1% of the country’s power; in August its market share was 19.0%. That performance stands in stark contrast to 2021, when coal’s market share in both July and August was more than 25%—roughly 6 percentage points higher. The low point this spring occurred in April and May, between the winter heating and summer cooling seasons, when coal’s market share slumped to just 13.8%—the first time it has ever fallen below 15%.
Despite hotter summer temperatures and increased power demand to run air conditioning in some parts of the country this summer, the use of coal has fallen. This is a result of lower prices for gas—coal’s primary fossil-fuel competitor—and a surge in utility-scale solar generation, which was up 20% in July from July 2022, and up 23% in August from a year ago.
The EIA’s current outlook suggests even more deterioration for coal power in the coming months. The energy agency not only sees coal’s November market share returning to the record-low market share in the spring, but also dropping even more in 2024, to as low as 10 to 13% in both the spring and fall.
The decision by plant owners to scale back their use of coal can be seen in at least two measures. First, power generation at coal plants has fallen every single month in 2023 compared to the same months in 2022, both at those owned by utilities and those owned by independent power producers (IPPs)—and by a lot. Through August, utility coal generation has dropped an average of 19.7%. At IPP coal plants, which are more sensitive to competitive pressures, generation has fallen even more—declining an average of 29.7%, a sign that the economics of selling coal-fired power have deteriorated significantly this year.
At the same time, coal stockpiles have surged, to almost 130 million tons in June, and remain high. That’s enough to run coal plants for 113 days, or almost four months, based on the average amount of coal used over the previous year. This measure, called “days of burn,” is more useful than simply looking at the size of the coal piles, since there are fewer coal plants than in the past, and the ones that are still operating are running less. In fact, the amount of coal used each day in the U.S. has fallen from about 2.8 million tons a day in 2008 to roughly 1.1 million tons a day this year—a 62% drop.
It can take a long time to bring such large stockpiles down to levels power producers are more comfortable with—historically around 50 to 60 days’ supply. It took 16 months to lower stockpiles from the May 2020 peak of 120 days of burn, and it took 34 months—almost three years— to lower stockpiles after a May 2016 peak of 105 days of burn. The speed of the drawdown will also be influenced by other factors like warm winter weather, the health of the U.S. economy, and gas prices.
To cut stockpiles, coal-plant owners are likely to turn to a straightforward solution: Buy less coal.
That, of course, would directly affect coal mining in the U.S., and the EIA is already warning that a significant production downturn is coming for the remainder of 2023 and throughout 2024. Overall, coal output could fall to 466 million tons in 2024, a 25 percent decline of 115 million tons from 2023 levels, the EIA says. If that figure holds, it would be the smallest annual U.S. coal production since 1962—but most of the years between 1936 and 1957 also had higher output.
Western producers, which include the nation’s largest mines in the Powder River Basin, could be hardest hit. The EIA is anticipating output in the region to slump 30% next year, or 73 million tons, to just 246 million tons. That would be the region’s lowest production in at least 40 years. Appalachian production doesn’t fare much better. There, the EIA expects production to fall almost 22%, or 29 million tons, to just 132 million tons. For comparison, when coal output in Appalachia peaked in 1990, almost four times as much of the fuel was mined.
After a sharp drop in coal demand in 2020 due to the pandemic, output from U.S. coal producers moderately rebounded and stabilized in 2021. Then, in 2022, coal prices soared after the Russian invasion of Ukraine, which broadly improved the financial health of U.S. coal companies—but provided only a modest improvement in the volume of coal produced, which declined again this year.
That temporary reprieve has ended. Coal companies are now staring at a substantial new downturn driven by an accelerating decline in domestic demand.
Source: IEEFA
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
Coal prices inched up in May (m/m) following an 8 percent decline in 2024Q1. The Australian and South African benchmarks have plummeted more ...
Friday, 26 July 24
FUELEU MARITME IS COMING. IS YOUR CHARTERPARTY READY? - GARD
With less than six months to implementation of FuelEU Maritime in EU and EEA trades, there has been little published advice regarding how to alloca ...
Thursday, 04 July 24
INDIA'S COAL PRODUCTION RISES 14% IN JUNE - PTI
The country’s coal production rose by 14.49% to 84.63 million tonne (MT) in June. The country’s coal output was 73.92 MT in June last f ...
Tuesday, 02 July 24
NTPC CAPTIVE COAL OUTPUT GROWS 15% IN Q1; DESPATCH RISES 17%
State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
|
|
|
Showing 6 to 10 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Meenaskhi Energy Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- SMG Consultants - Indonesia
- Global Coal Blending Company Limited - Australia
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Manunggal Multi Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Eastern Coal Council - USA
- The Treasury - Australian Government
- Oldendorff Carriers - Singapore
- Bulk Trading Sa - Switzerland
- Toyota Tsusho Corporation, Japan
- Petron Corporation, Philippines
- Energy Link Ltd, New Zealand
- Cement Manufacturers Association - India
- Orica Mining Services - Indonesia
- Rio Tinto Coal - Australia
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- PowerSource Philippines DevCo
- IEA Clean Coal Centre - UK
- Ind-Barath Power Infra Limited - India
- Commonwealth Bank - Australia
- Anglo American - United Kingdom
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- OPG Power Generation Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Indonesian Coal Mining Association
- Australian Commodity Traders Exchange
- Siam City Cement - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Bukit Makmur.PT - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Goldman Sachs - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Makarim & Taira - Indonesia
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- GVK Power & Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- White Energy Company Limited
- Eastern Energy - Thailand
- Bharathi Cement Corporation - India
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Mjunction Services Limited - India
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Billiton Holdings Pty Ltd - Australia
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- Sree Jayajothi Cements Limited - India
- IHS Mccloskey Coal Group - USA
- PTC India Limited - India
- Latin American Coal - Colombia
- Formosa Plastics Group - Taiwan
- Indian Energy Exchange, India
- Bhushan Steel Limited - India
- Cigading International Bulk Terminal - Indonesia
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- CIMB Investment Bank - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- Intertek Mineral Services - Indonesia
- Madhucon Powers Ltd - India
- Coal and Oil Company - UAE
- McConnell Dowell - Australia
- Kideco Jaya Agung - Indonesia
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- Iligan Light & Power Inc, Philippines
- Central Java Power - Indonesia
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- Antam Resourcindo - Indonesia
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Simpson Spence & Young - Indonesia
- SN Aboitiz Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- VISA Power Limited - India
- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Independent Power Producers Association of India
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- Mercator Lines Limited - India
- Parliament of New Zealand
- Medco Energi Mining Internasional
- Vizag Seaport Private Limited - India
- Malabar Cements Ltd - India
- Indogreen Group - Indonesia
- GMR Energy Limited - India
- Coastal Gujarat Power Limited - India
- Orica Australia Pty. Ltd.
- London Commodity Brokers - England
- Chamber of Mines of South Africa
- The University of Queensland
- Pipit Mutiara Jaya. PT, Indonesia
- Larsen & Toubro Limited - India
- AsiaOL BioFuels Corp., Philippines
- Altura Mining Limited, Indonesia
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Ministry of Mines - Canada
- New Zealand Coal & Carbon
- Singapore Mercantile Exchange
- Power Finance Corporation Ltd., India
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Straits Asia Resources Limited - Singapore
- The State Trading Corporation of India Ltd
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- Kepco SPC Power Corporation, Philippines
- Lanco Infratech Ltd - India
- Georgia Ports Authority, United States
- Semirara Mining and Power Corporation, Philippines
- Thiess Contractors Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- Global Green Power PLC Corporation, Philippines
- Trasteel International SA, Italy
- Posco Energy - South Korea
- Barasentosa Lestari - Indonesia
- Indika Energy - Indonesia
- Mintek Dendrill Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- India Bulls Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Vedanta Resources Plc - India
- Carbofer General Trading SA - India
- Globalindo Alam Lestari - Indonesia
- Australian Coal Association
- Kumho Petrochemical, South Korea
- Price Waterhouse Coopers - Russia
- Renaissance Capital - South Africa
- Star Paper Mills Limited - India
- Gujarat Sidhee Cement - India
- Interocean Group of Companies - India
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Bangladesh Power Developement Board
- Vijayanagar Sugar Pvt Ltd - India
- Port Waratah Coal Services - Australia
- European Bulk Services B.V. - Netherlands
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- LBH Netherlands Bv - Netherlands
- Xindia Steels Limited - India
- Planning Commission, India
- Sojitz Corporation - Japan
- Salva Resources Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Wilmar Investment Holdings
- Dalmia Cement Bharat India
- GAC Shipping (India) Pvt Ltd
- Binh Thuan Hamico - Vietnam
- Banpu Public Company Limited - Thailand
- San Jose City I Power Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Uttam Galva Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Economic Council, Georgia
- Bayan Resources Tbk. - Indonesia
- Aboitiz Power Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kaltim Prima Coal - Indonesia
- Meralco Power Generation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Essar Steel Hazira Ltd - India
- Therma Luzon, Inc, Philippines
- Videocon Industries ltd - India
- Savvy Resources Ltd - HongKong
- Alfred C Toepfer International GmbH - Germany
- Mercuria Energy - Indonesia
- SMC Global Power, Philippines
- Africa Commodities Group - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Indian Oil Corporation Limited
- Rashtriya Ispat Nigam Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Ministry of Transport, Egypt
- Central Electricity Authority - India
- Bhatia International Limited - India
- Jindal Steel & Power Ltd - India
- Samtan Co., Ltd - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
|
| |
| |
|
