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.
|
|
Saturday, 13 February 10
COAL INDIA 2010/11 COAL IMPORTS TO JUMP - EXEC
Coal imports by state-run Coal India Ltd are likely to soar to 6-10 million tonnes in fiscal 2010/11 from an expected 1.5-1.7 million tonnes in the ...
Saturday, 13 February 10
RULES MAY FREE $10B OF MINING PROJECTS IN INDONESIA
The government announced on Friday that it had issued two implementing regulations for the new Mining Law that will clear the way for the developmen ...
Saturday, 13 February 10
INDONESIA OFFERS TAX INCENTIVES FOR RENEWABLE ENERGY
Indonesia is offering tax incentives to develop renewable energy projects, including geothermal energy, to cut dependency on fossil fuels, a decree ...
Friday, 12 February 10
MECHEL EYES 2010 COAL OUTPUT AT 28-29 MLN T
Russian steel and coking coal producer Mechel expects coal output to reach 28-29 million tonnes this year, returning to pre-crisis levels thanks to ...
Friday, 12 February 10
TATA POWER: QUARTERLY BLIP
Although the company’s revenues dipped in the December quarter, its long-term story is intact.
Lower power generation and realisations saw ...
|
|
|
Showing 6001 to 6005 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Formosa Plastics Group - Taiwan
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- GVK Power & Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Kumho Petrochemical, South Korea
- Iligan Light & Power Inc, Philippines
- Makarim & Taira - Indonesia
- Toyota Tsusho Corporation, Japan
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- VISA Power Limited - India
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Planning Commission, India
- Anglo American - United Kingdom
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- South Luzon Thermal Energy Corporation
- Ambuja Cements Ltd - India
- The Treasury - Australian Government
- Kepco SPC Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Indika Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Agrawal Coal Company - India
- Edison Trading Spa - Italy
- The State Trading Corporation of India Ltd
- Dalmia Cement Bharat India
- Gujarat Mineral Development Corp Ltd - India
- IHS Mccloskey Coal Group - USA
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- Port Waratah Coal Services - Australia
- Sinarmas Energy and Mining - Indonesia
- Chamber of Mines of South Africa
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- Xindia Steels Limited - India
- Manunggal Multi Energi - Indonesia
- Meralco Power Generation, Philippines
- Star Paper Mills Limited - India
- Renaissance Capital - South Africa
- Parry Sugars Refinery, India
- Kalimantan Lumbung Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Mjunction Services Limited - India
- Eastern Coal Council - USA
- Kaltim Prima Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Malabar Cements Ltd - India
- ICICI Bank Limited - India
- Altura Mining Limited, Indonesia
- IEA Clean Coal Centre - UK
- Australian Commodity Traders Exchange
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- Marubeni Corporation - India
- Thai Mozambique Logistica
- Directorate General of MIneral and Coal - Indonesia
- Videocon Industries ltd - India
- Vizag Seaport Private Limited - India
- Parliament of New Zealand
- Timah Investasi Mineral - Indoneisa
- SMG Consultants - Indonesia
- Kobexindo Tractors - Indoneisa
- Bukit Makmur.PT - Indonesia
- Oldendorff Carriers - Singapore
- Cigading International Bulk Terminal - Indonesia
- Eastern Energy - Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Sidhee Cement - India
- Rio Tinto Coal - Australia
- Electricity Generating Authority of Thailand
- Wood Mackenzie - Singapore
- Ministry of Mines - Canada
- Orica Mining Services - Indonesia
- Latin American Coal - Colombia
- Global Coal Blending Company Limited - Australia
- Salva Resources Pvt Ltd - India
- White Energy Company Limited
- European Bulk Services B.V. - Netherlands
- Aditya Birla Group - India
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhatia International Limited - India
- Mintek Dendrill Indonesia
- ASAPP Information Group - India
- Standard Chartered Bank - UAE
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Larsen & Toubro Limited - India
- Therma Luzon, Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- Banpu Public Company Limited - Thailand
- Tata Chemicals Ltd - India
- International Coal Ventures Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Medco Energi Mining Internasional
- Savvy Resources Ltd - HongKong
- Intertek Mineral Services - Indonesia
- Independent Power Producers Association of India
- Indogreen Group - Indonesia
- Thiess Contractors Indonesia
- Bukit Baiduri Energy - Indonesia
- Sical Logistics Limited - India
- Siam City Cement PLC, Thailand
- Interocean Group of Companies - India
- Central Electricity Authority - India
- Jaiprakash Power Ventures ltd
- Maheswari Brothers Coal Limited - India
- Bhoruka Overseas - Indonesia
- Siam City Cement - Thailand
- Goldman Sachs - Singapore
- San Jose City I Power Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- Antam Resourcindo - Indonesia
- Sojitz Corporation - Japan
- Globalindo Alam Lestari - Indonesia
- Baramulti Group, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Deloitte Consulting - India
- Coal and Oil Company - UAE
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- Central Java Power - Indonesia
- Directorate Of Revenue Intelligence - India
- Bangladesh Power Developement Board
- PetroVietnam Power Coal Import and Supply Company
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Singapore Mercantile Exchange
- Energy Link Ltd, New Zealand
- Sree Jayajothi Cements Limited - India
- Heidelberg Cement - Germany
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- McConnell Dowell - Australia
- Riau Bara Harum - Indonesia
- Coalindo Energy - Indonesia
- Grasim Industreis Ltd - India
- Commonwealth Bank - Australia
- Borneo Indobara - Indonesia
- Attock Cement Pakistan Limited
- Indian Energy Exchange, India
- Romanian Commodities Exchange
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Uttam Galva Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- CNBM International Corporation - China
- Binh Thuan Hamico - Vietnam
- Ministry of Finance - Indonesia
- Sindya Power Generating Company Private Ltd
- Bharathi Cement Corporation - India
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- LBH Netherlands Bv - Netherlands
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- Karaikal Port Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- Orica Australia Pty. Ltd.
- GN Power Mariveles Coal Plant, Philippines
- PowerSource Philippines DevCo
- Indonesian Coal Mining Association
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- Mercuria Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Merrill Lynch Commodities Europe
- Bulk Trading Sa - Switzerland
- Barasentosa Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petron Corporation, Philippines
- Australian Coal Association
- Power Finance Corporation Ltd., India
- Leighton Contractors Pty Ltd - Australia
- Cement Manufacturers Association - India
- Jindal Steel & Power Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Trasteel International SA, Italy
- Minerals Council of Australia
- Semirara Mining and Power Corporation, Philippines
- Economic Council, Georgia
- Rashtriya Ispat Nigam Limited - India
- Energy Development Corp, Philippines
|
| |
| |
|
