We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 04 March 10
GLOBAL COAL PRICES GETS SUPPORT FROM EM DEMAND
 Commodity Online reported that, AP12 coal prices look well supported in 2010 thanks to positive outlook for Chinese coal demand whereas coal demand in Europe, rest of the world is shockingly low and stocks have hardly drawn despite the coldest winter in decades, according to an analysis by Bank of America- Merrill Lynch (BofAML).
Japan, by far the biggest importer of thermal coal, cut back on its appetite for coal by almost 20 million mt last year, to 117million mt. Europe took in 22 million metric tons less last year, driven particularly by Spain, Italy, the UK and France as low natural gas prices supported switching out of coal in the power sector
Last year China imported 70.4 mn mt of thermal coal, relative to outflows of 7.8 mn in 2008. China's imports will witness slowdown due to ramping up of internal proudction, according to BofAML.
|
|
“Last year China imported 70.4 mln mt of thermal coal, relative to outflows of 7.8 mln in 2008. China's imports will witness slowdown due to ramping up of internal production” - BofAML
|
|
|
Coal prices are protected to the downside by the high marginal cost of production, particularly in Russia. However, the oversupply in Europe will likely keep a lid on API2 prices near-term.
API2 front month coal increased from a low of $75/mt in mid December to $97/mt in early January, sharply outpacing other energy markets. Heavy snowstorms led to local power shortages, particularly in the South of the country.
Perhaps more importantly, a much stronger-than-expected cyclical rebound in China drove power generation growth to new highs, up 33% YoY over the past three months, helping to fuel coal demand. Other Asian countries also experienced a turn-around in electricity generation. In turn, due to the heavy snowfall and rail constraints, China resorted to seaborne coal as opposed to domestically produced material. Elsewhere, a glaringly cold winter in Europe provided some support to sentiment. Producer infrastructure constraints, particularly in Australia, South Africa and Indonesia, temporarily tightened the international coal market.
Ultimately, the 3-week rally in coal did not last and prices reversed sharply in mid January as the snowfalls in China receded and the USD strengthened. In recent weeks, front-month API2 coal traded down to $72.75/mt and has been in the $72/mt to $79/mt range. Chinese imports in January, though still at a very high level, cooled off month-on-month basis. Moreover, big European coal users, like Germany, France and the UK, recorded steep demand losses in January, at a time that they experienced the sharpest winter in decade, BofAML analysis said.
In the UK for instance, coal demand in December equalled 4.6 million mt, down from 6.3 million mt in the prior year. Preliminary data indicates that the trend continued over the past weeks.
Traditional European coal suppliers are doing what they can to manage supply to Europe. Russia has reportedly closed some mines to keep exports to Europe low. South Africa is actively diversifying away from Europe towards demand outlets in Asia Pacific. During 2009, 31% of South African exports went to India, from virtually nothing in previous years. That trend was particularly pronounced over the past months. Although in small volumes, South Africa has also been pushing material into China. More absurdly, Colombia-- who typically exports 50-60% of their coal to Europe with the balance going to the Americas--
has now detected interest in Asia.
Colombia exported small volumes to China in December to the tune of 1.5-1.7 million mt, for the first time ever. Of course, sharply lower freight rates are helping these trade flows. As we see continued supply of new Capesize vessels in 2010, freight will likely remain cheap by historical standards in the near-term. Once freight recovers, possibly at the end of this year with the cyclical demand recovery soaking up the supply in ships, these trade-flows are unlikely to be sustainable.
Europe's coal inventories remain at excessive levels at key import ports in Rotterdam and Amsterdam as supply exceeds demand. BofAML sses strong relationship between spreads in AP12 and coal inventories. Hence it is no surprise that the contango in API2 has steepened even more, with front month to front calendar year spreads at the widest since July last year , reflecting the oversupply in the European market and bulging inventories.
Coal markets in the Pacific are a lot tighter, with inventories relatively low in key coal consumers like China, India and South Korea. Meanwhile, the Newcastle coal market is trading in backwardation. Several coal mines in Australia had to declare force majeure in response to severe rainfalls on the east coast which flooded mines, while major rail lines had to close, clogging up the coal chain infrastructure. 47 vessels are currently again lining up outside Newcastle , underscoring that infrastructure problems will not go away easily, BofAML analysis said.
Overall, the outlook for emerging market coal demand remains very positive though. China is expected buy more seaborne coal as as the Chinese Renminbi is likely to be revalued by mid year. In BofAMl analysis, a CNY revaluation is undoubtedly positive for global thermal coal prices. Other EMs likeMexico and Turkey are sharply ramping up coal imports. India continues to suffer from a negative coal balance and will have to rely on the seaborne market for supplies. On a medium-term horizon, we believe that global seaborne coal prices have immense upside from the current level given the growth in coal-fired generation capacity.
Source:Commodity Online - By Madhurima R S
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 09 March 10
MINING LAW OPTIMIZES SECTOR
Law No. 4 / 2009 on Mineral and Coal Mining have given a new direction for the future of mining in Indonesia, including Domestic Market Obligation, ...
Tuesday, 09 March 10
STRONG REBOUND IN ALL THE DRY BULK SEGMENTS THIS WEEK
There was a strong rebound in all the dry bulk segments this week, leading to an 18% jump in the Baltic Dry Index.
The Cape and Panamax markets s ...
Tuesday, 09 March 10
L&T POWER EYEING COAL MINES IN AUS, INDONESIA
L&T Power Development Company, a part of the Larsen & Tubro Group, plans to acquire coal mines in Australia and Indonesia, a top company off ...
Tuesday, 09 March 10
BHP AGREES SHORTER-TERM COAL DEALS WITH EUROPEAN, ASIAN CUSTOMERS
Diversified miner BHP Billiton on Monday reported that it had reached sales terms for a significant portion of its hard coking coal volumes for 2010 ...
Monday, 08 March 10
KPCL TO IMPORT 0.9 MILLION TON OF 6000 GCV COAL
COALspot.com: India's Karnataka Power Corporation Ltd is seeking to import 0.9 million metric tons of 6000 kcal/kg (adb) Gross Calorific Value stea ...
|
|
|
Showing 5951 to 5955 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Merrill Lynch Commodities Europe
- Electricity Authority, New Zealand
- Binh Thuan Hamico - Vietnam
- Economic Council, Georgia
- SMG Consultants - Indonesia
- Mjunction Services Limited - India
- Savvy Resources Ltd - HongKong
- Eastern Coal Council - USA
- Wilmar Investment Holdings
- Formosa Plastics Group - Taiwan
- Rashtriya Ispat Nigam Limited - India
- Manunggal Multi Energi - Indonesia
- Bhatia International Limited - India
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- Samtan Co., Ltd - South Korea
- Sarangani Energy Corporation, Philippines
- Eastern Energy - Thailand
- Mintek Dendrill Indonesia
- Ind-Barath Power Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Power Finance Corporation Ltd., India
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Maheswari Brothers Coal Limited - India
- Attock Cement Pakistan Limited
- Jaiprakash Power Ventures ltd
- Bayan Resources Tbk. - Indonesia
- Barasentosa Lestari - Indonesia
- Port Waratah Coal Services - Australia
- Kobexindo Tractors - Indoneisa
- Central Electricity Authority - India
- Bhushan Steel Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Global Coal Blending Company Limited - Australia
- Bangladesh Power Developement Board
- Globalindo Alam Lestari - Indonesia
- Thiess Contractors Indonesia
- PNOC Exploration Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Thai Mozambique Logistica
- International Coal Ventures Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Indika Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- The State Trading Corporation of India Ltd
- PTC India Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- SN Aboitiz Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Parliament of New Zealand
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- Australian Coal Association
- Riau Bara Harum - Indonesia
- Simpson Spence & Young - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Parry Sugars Refinery, India
- Aditya Birla Group - India
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Marubeni Corporation - India
- Indo Tambangraya Megah - Indonesia
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- San Jose City I Power Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vizag Seaport Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Romanian Commodities Exchange
- Price Waterhouse Coopers - Russia
- Petrochimia International Co. Ltd.- Taiwan
- Videocon Industries ltd - India
- Antam Resourcindo - Indonesia
- Orica Mining Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Standard Chartered Bank - UAE
- McConnell Dowell - Australia
- Global Green Power PLC Corporation, Philippines
- Vedanta Resources Plc - India
- SMC Global Power, Philippines
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- Energy Link Ltd, New Zealand
- Edison Trading Spa - Italy
- PowerSource Philippines DevCo
- Altura Mining Limited, Indonesia
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Commodity Traders Exchange
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- Meenaskhi Energy Private Limited - India
- Wood Mackenzie - Singapore
- Indogreen Group - Indonesia
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Siam City Cement - Thailand
- GAC Shipping (India) Pvt Ltd
- Orica Australia Pty. Ltd.
- Karaikal Port Pvt Ltd - India
- Mercator Lines Limited - India
- Kaltim Prima Coal - Indonesia
- Coastal Gujarat Power Limited - India
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- Dalmia Cement Bharat India
- Pendopo Energi Batubara - Indonesia
- Latin American Coal - Colombia
- Carbofer General Trading SA - India
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- Medco Energi Mining Internasional
- Semirara Mining Corp, Philippines
- Chamber of Mines of South Africa
- Indian Energy Exchange, India
- Global Business Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Deloitte Consulting - India
- Agrawal Coal Company - India
- Metalloyd Limited - United Kingdom
- Iligan Light & Power Inc, Philippines
- Baramulti Group, Indonesia
- White Energy Company Limited
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Jindal Steel & Power Ltd - India
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- Kumho Petrochemical, South Korea
- Krishnapatnam Port Company Ltd. - India
- Lanco Infratech Ltd - India
- Bulk Trading Sa - Switzerland
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- Heidelberg Cement - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- Madhucon Powers Ltd - India
- Bukit Makmur.PT - Indonesia
- VISA Power Limited - India
- Siam City Cement PLC, Thailand
- Gujarat Sidhee Cement - India
- Cigading International Bulk Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Ministry of Finance - Indonesia
- Planning Commission, India
- AsiaOL BioFuels Corp., Philippines
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- The Treasury - Australian Government
- Grasim Industreis Ltd - India
- Borneo Indobara - Indonesia
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Therma Luzon, Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- Makarim & Taira - Indonesia
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- Salva Resources Pvt Ltd - India
- Minerals Council of Australia
- Directorate General of MIneral and Coal - Indonesia
- Central Java Power - Indonesia
- Kepco SPC Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Renaissance Capital - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Straits Asia Resources Limited - Singapore
- Anglo American - United Kingdom
- Aboitiz Power Corporation - Philippines
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- Mercuria Energy - Indonesia
- Xindia Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- LBH Netherlands Bv - Netherlands
- Vijayanagar Sugar Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Banpu Public Company Limited - Thailand
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
|
| |
| |
|
