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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.
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“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
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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
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Monday, 15 February 10
INDONESIA IN TALKS TO RESOLVE BANPU MINE CLOSURE
Indonesia is seeking to resolve a land permiting problem resulting in the closure of a coal mine in Kalimantan operated by a unit of Thailand's top ...
Monday, 15 February 10
PVT ENTRY IN COAL MINING TO BE DELAYED
Entry of private players in coal mining will be delayed. Contrary to expectations, the coal ministry will not move in the Budget session a bill that ...
Sunday, 14 February 10
NEWCASTLE STEAM COAL TRADES AT US$ 91 TO US$ 92
Reuters reported that prompt cargo prices for coal delivered into Europe were largely unchanged recently after a day of subdued trading.
European ...
Saturday, 13 February 10
THE FREIGHT MARKET CONTINUED TO BE WEAK THIS WEEK - CAPT. REDDY
COALspot.com (Singapore): The freight market continued to be weak this week. There have been quite a few spot vessels open Far east and have been fo ...
Saturday, 13 February 10
INDONESIA ISSUES NEW MINING REGULATIONS
Indonesia has issued two new regulations under its mining law to allow firms to start obtaining mining permits, in a move that should increase certa ...
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Showing 5996 to 6000 news of total 6871 |
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- Alfred C Toepfer International GmbH - Germany
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- San Jose City I Power Corp, Philippines
- Malabar Cements Ltd - India
- The State Trading Corporation of India Ltd
- Central Electricity Authority - India
- Bukit Asam (Persero) Tbk - Indonesia
- Eastern Coal Council - USA
- Karaikal Port Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Videocon Industries ltd - India
- Renaissance Capital - South Africa
- Binh Thuan Hamico - Vietnam
- Georgia Ports Authority, United States
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- CNBM International Corporation - China
- Minerals Council of Australia
- Ambuja Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Siam City Cement PLC, Thailand
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Commonwealth Bank - Australia
- Ceylon Electricity Board - Sri Lanka
- Ministry of Transport, Egypt
- Mercator Lines Limited - India
- MS Steel International - UAE
- Karbindo Abesyapradhi - Indoneisa
- Energy Development Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- White Energy Company Limited
- Riau Bara Harum - Indonesia
- PTC India Limited - India
- Tamil Nadu electricity Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- Madhucon Powers Ltd - India
- SN Aboitiz Power Inc, Philippines
- Australian Coal Association
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Indo Tambangraya Megah - Indonesia
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- Lanco Infratech Ltd - India
- Manunggal Multi Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Kumho Petrochemical, South Korea
- Ministry of Finance - Indonesia
- Aboitiz Power Corporation - Philippines
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- Cigading International Bulk Terminal - Indonesia
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- Cement Manufacturers Association - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Medco Energi Mining Internasional
- Maheswari Brothers Coal Limited - India
- Kapuas Tunggal Persada - Indonesia
- Samtan Co., Ltd - South Korea
- Singapore Mercantile Exchange
- Interocean Group of Companies - India
- Edison Trading Spa - Italy
- Sinarmas Energy and Mining - Indonesia
- Orica Australia Pty. Ltd.
- Indogreen Group - Indonesia
- Formosa Plastics Group - Taiwan
- PowerSource Philippines DevCo
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- GAC Shipping (India) Pvt Ltd
- Bukit Makmur.PT - Indonesia
- Meralco Power Generation, Philippines
- Carbofer General Trading SA - India
- Latin American Coal - Colombia
- Gujarat Sidhee Cement - India
- Vizag Seaport Private Limited - India
- Merrill Lynch Commodities Europe
- Bhushan Steel Limited - India
- Goldman Sachs - Singapore
- Intertek Mineral Services - Indonesia
- Kobexindo Tractors - Indoneisa
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Trasteel International SA, Italy
- Ind-Barath Power Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Posco Energy - South Korea
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Gujarat Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercuria Energy - Indonesia
- Orica Mining Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Parliament of New Zealand
- Chamber of Mines of South Africa
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Jaiprakash Power Ventures ltd
- Global Green Power PLC Corporation, Philippines
- Standard Chartered Bank - UAE
- Antam Resourcindo - Indonesia
- TeaM Sual Corporation - Philippines
- Deloitte Consulting - India
- SMC Global Power, Philippines
- Makarim & Taira - Indonesia
- Sakthi Sugars Limited - India
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Wood Mackenzie - Singapore
- GMR Energy Limited - India
- Krishnapatnam Port Company Ltd. - India
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Agrawal Coal Company - India
- Miang Besar Coal Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- New Zealand Coal & Carbon
- Neyveli Lignite Corporation Ltd, - India
- Aditya Birla Group - India
- Mjunction Services Limited - India
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Energy Link Ltd, New Zealand
- Indonesian Coal Mining Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mintek Dendrill Indonesia
- Coalindo Energy - Indonesia
- Rio Tinto Coal - Australia
- VISA Power Limited - India
- Anglo American - United Kingdom
- Price Waterhouse Coopers - Russia
- Africa Commodities Group - South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Petron Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Grasim Industreis Ltd - India
- Economic Council, Georgia
- Jorong Barutama Greston.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Tata Chemicals Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Attock Cement Pakistan Limited
- McConnell Dowell - Australia
- Straits Asia Resources Limited - Singapore
- Pendopo Energi Batubara - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Directorate General of MIneral and Coal - Indonesia
- ICICI Bank Limited - India
- International Coal Ventures Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Meenaskhi Energy Private Limited - India
- Semirara Mining Corp, Philippines
- Vedanta Resources Plc - India
- Dalmia Cement Bharat India
- Global Business Power Corporation, Philippines
- The University of Queensland
- Sojitz Corporation - Japan
- Borneo Indobara - Indonesia
- Siam City Cement - Thailand
- Eastern Energy - Thailand
- Independent Power Producers Association of India
- Bhatia International Limited - India
- Baramulti Group, Indonesia
- Coal and Oil Company - UAE
- Altura Mining Limited, Indonesia
- Xindia Steels Limited - India
- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- Oldendorff Carriers - Singapore
- Kepco SPC Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
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