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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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Saturday, 09 January 10
IMPORTED, LOCAL COAL TO BE MIXED IN POWER DRIVE
The government is likely to create a pool price of coal, wherein imported coal and Indian coal could be mixed, making the imported coal becomes more ...
Friday, 08 January 10
SA COAL PRICES TO SPIKE ON RESUMED INDIA BUYING
South African coal prices are set for another price surge to over $100 a ton FOB as Indian and Chinese buyers compete for limited prompt supply, pro ...
Friday, 08 January 10
COLOMBIAN COAL STARTS TO MOVE TO CHINA - TRADERS
* Producer sells cape cargo Colombian coal to China
* Firm bids in freight market
* More shipments expected
Colombian coal is starting to move ...
Thursday, 07 January 10
PT. BUKIT ASAM TO BUILD NEW COAL LOADING TERMINAL AND COAL LOADER
COALspot.com (Indonesia): PT Bukit Asam (Persero) Tbk, Indonesia’s state owned coal mining company, is planning to build an additi ...
Thursday, 07 January 10
RAMKY PLANS COAL MINING IN INDONESIA
Ramky Infrastructure Limited, a Hyderabad-based integrated infrastructure construction and development management company with strategic emphasis on ...
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Showing 6106 to 6110 news of total 6871 |
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- Aboitiz Power Corporation - Philippines
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
- Mercuria Energy - Indonesia
- Aditya Birla Group - India
- GVK Power & Infra Limited - India
- TeaM Sual Corporation - Philippines
- Grasim Industreis Ltd - India
- Coalindo Energy - Indonesia
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Bhatia International Limited - India
- Power Finance Corporation Ltd., India
- Eastern Energy - Thailand
- Altura Mining Limited, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Siam City Cement PLC, Thailand
- Electricity Authority, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Binh Thuan Hamico - Vietnam
- Sree Jayajothi Cements Limited - India
- IHS Mccloskey Coal Group - USA
- ICICI Bank Limited - India
- Semirara Mining and Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Kumho Petrochemical, South Korea
- Minerals Council of Australia
- SMC Global Power, Philippines
- Latin American Coal - Colombia
- Medco Energi Mining Internasional
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Straits Asia Resources Limited - Singapore
- Singapore Mercantile Exchange
- Ministry of Finance - Indonesia
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cigading International Bulk Terminal - Indonesia
- International Coal Ventures Pvt Ltd - India
- London Commodity Brokers - England
- Barasentosa Lestari - Indonesia
- India Bulls Power Limited - India
- Maheswari Brothers Coal Limited - India
- Kepco SPC Power Corporation, Philippines
- Global Business Power Corporation, Philippines
- White Energy Company Limited
- Edison Trading Spa - Italy
- Merrill Lynch Commodities Europe
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Indian Oil Corporation Limited
- Miang Besar Coal Terminal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Jaiprakash Power Ventures ltd
- SN Aboitiz Power Inc, Philippines
- Star Paper Mills Limited - India
- Vizag Seaport Private Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- Salva Resources Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Semirara Mining Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Sindya Power Generating Company Private Ltd
- Orica Mining Services - Indonesia
- Antam Resourcindo - Indonesia
- Oldendorff Carriers - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Timah Investasi Mineral - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Bhoruka Overseas - Indonesia
- Independent Power Producers Association of India
- PetroVietnam Power Coal Import and Supply Company
- ASAPP Information Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- San Jose City I Power Corp, Philippines
- Cement Manufacturers Association - India
- Xindia Steels Limited - India
- Indika Energy - Indonesia
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Banpu Public Company Limited - Thailand
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement - Thailand
- Wood Mackenzie - Singapore
- Ministry of Mines - Canada
- Parliament of New Zealand
- Trasteel International SA, Italy
- Neyveli Lignite Corporation Ltd, - India
- Simpson Spence & Young - Indonesia
- Globalindo Alam Lestari - Indonesia
- MS Steel International - UAE
- Metalloyd Limited - United Kingdom
- Baramulti Group, Indonesia
- Makarim & Taira - Indonesia
- Uttam Galva Steels Limited - India
- Sojitz Corporation - Japan
- Larsen & Toubro Limited - India
- Manunggal Multi Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Marubeni Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- Planning Commission, India
- CNBM International Corporation - China
- Bukit Makmur.PT - Indonesia
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- New Zealand Coal & Carbon
- Therma Luzon, Inc, Philippines
- Romanian Commodities Exchange
- Toyota Tsusho Corporation, Japan
- Energy Link Ltd, New Zealand
- Tata Chemicals Ltd - India
- Bharathi Cement Corporation - India
- Attock Cement Pakistan Limited
- Electricity Generating Authority of Thailand
- Kalimantan Lumbung Energi - Indonesia
- Mjunction Services Limited - India
- PNOC Exploration Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Videocon Industries ltd - India
- Meralco Power Generation, Philippines
- Ind-Barath Power Infra Limited - India
- Eastern Coal Council - USA
- Vijayanagar Sugar Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- European Bulk Services B.V. - Netherlands
- Coastal Gujarat Power Limited - India
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Global Green Power PLC Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Interocean Group of Companies - India
- Kaltim Prima Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- Agrawal Coal Company - India
- Standard Chartered Bank - UAE
- Samtan Co., Ltd - South Korea
- South Luzon Thermal Energy Corporation
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Sakthi Sugars Limited - India
- Karaikal Port Pvt Ltd - India
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Rio Tinto Coal - Australia
- Indonesian Coal Mining Association
- Kobexindo Tractors - Indoneisa
- Ministry of Transport, Egypt
- The University of Queensland
- Energy Development Corp, Philippines
- Vedanta Resources Plc - India
- Jindal Steel & Power Ltd - India
- Leighton Contractors Pty Ltd - Australia
- VISA Power Limited - India
- Chamber of Mines of South Africa
- PTC India Limited - India
- Kideco Jaya Agung - Indonesia
- Goldman Sachs - Singapore
- Madhucon Powers Ltd - India
- Posco Energy - South Korea
- Gujarat Electricity Regulatory Commission - India
- Gujarat Sidhee Cement - India
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Georgia Ports Authority, United States
- Wilmar Investment Holdings
- Intertek Mineral Services - Indonesia
- CIMB Investment Bank - Malaysia
- Port Waratah Coal Services - Australia
- Central Java Power - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Formosa Plastics Group - Taiwan
- Global Coal Blending Company Limited - Australia
- Indo Tambangraya Megah - Indonesia
- Iligan Light & Power Inc, Philippines
- Central Electricity Authority - India
- Kartika Selabumi Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
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