Week #5, week ending 5 February 2010

• globalCOAL weekly index DES ARA: 78.21 USD (RB 84,72 USD)
• Bohai Rim Area returns to normal vessel traffic after two weeks of extremely cold weather, which blocked Coal shipments in the region. Coal shipments in Huahuang were reduced even to 50,000 mts a day.
• India has increased its Coal production by almost 8% in the fiscal year 2008/2009. Nevertheless, some 59 Million tonnes had to be exported in that period due to the growing domestic demand.
• Chinese buyers acquire US coking Coal cargos on spot basis as the preferred Australian material is scarcely available. Latest quotes show 160 USD/mt FOB Baltimore and 210 USD/mt CFR price.

Week #4, week ending 29 January 2010

• globalCOAL weekly index DES ARA: 82,28 USD (RB 84,24 USD)
• Beijing to construct five Coal reserve bases in 2010 at a capacity of 3 Million tonnes, 10% of its yearly consumption.
• A spell of cold weather disrupted operations in the Black Sea Ports in the Ukraine. Due to low temperatures reaching -20 C cranes and screening facilities may fail to work properly, thus delaying loading of cargos and creating large stocks of Russian Steam Coal.
• The Czech Ministry of Environment has yielded to international pressure and will allow international audit to be carried out on upgrade plans of the Prunerov power plant. This decision is a result of Micronesia's challenge to the upgrade plans, claiming that the upgrade fails to use the most up-to-date technology. Prunerov is currently working with 32,8% efficiency and is planned to be upgraded to 39%, whereas application of currently best technology would allow for 42-45 % efficiency level.
• Russian and Australian Steam Coal FOB Prices have gained roughly 15 USD in a month, reaching 100 USD/mt level.

Week #3, week ending 22 January 2010

• globalCOAL weekly index DES ARA: 83,77 USD (RB 87,39 USD)
• Bulk shipping rates to increase considerably as compared to 2009, estimates China Cosco Holdings Co., the largest operator of dry-bulk vessels globally. The increase in demand from China will have biggest influence on the Baltic Dry Index, which may jump over 50%.
• Polish Coal exports to pick up by some 20% in 2010, reaching 8 Million tonnes, estimates Węglokoks, the main Coal exporter from Poland. Main markets are Germany, Austria and  the UK. 
• JSW Energy plans invest 4500 crore RS (roughly 10 Billion USD) in Coal mines abroad and another 10,000 crore RS in a joint venture JSW Bengal Steel.

Week #3, week ending 22 January 2010

• globalCOAL weekly index DES ARA: 83,77 USD (RB 87,39 USD)
• Bulk shipping rates to increase considerably as compared to 2009, estimates China Cosco Holdings Co., the largest operator of dry-bulk vessels globally. The increase in demand from China will have biggest influence on the Baltic Dry Index, which may jump over 50%.
• Polish Coal exports to pick up by some 20% in 2010, reaching 8 Million tonnes, estimates Węglokoks, the main Coal exporter from Poland. Main markets are Germany, Austria and  the UK. 
• JSW Energy plans invest 4500 crore RS (roughly 10 Billion USD) in Coal mines abroad and another 10,000 crore RS in a joint venture JSW Bengal Steel.

Week #2, week ending 15 January 2010

• globalCOAL weekly index DES ARA: 85,82 USD (RB 87,37 USD)
• UK Coal consumption soared as a spell of unusually cold weather has hit the island. A number of older Coal power stations, until recently working in restricted hours were plugged to the grid in order to provide freezing households with electricity and warmth. Analysts say of a necessity to organise a balanced and secure energy mix, which will have to include swift switch over to gas power plants and Coal plants with CCS.
• Newcastle Coal exports hit a record 8,97 Million tonnes in December 2009 on high demand from Asia.
• India Coal imports are being redirected from the Haldia port to Paradip, or even to Gangavaram or Visakhapatnam, as navigable conditions in the Hooghly river worsen. This brings disruption in railways operations, which have to tackle bottlenecks for redirected cargos.
• "Cautious optimism" appears in transportation industry for 2010 according to special Annual Review & Outlook edition of The Journal of Commerce. Global economy recovery should bring more movement of goods, however capacities will not be expanded. This may bring a sudden surge in freights if the economy recovery will proceed further than expected.
• Chinese coke exports have dropped by over 95% in 2009, totalling in 540 Thousand tonnes. Chinese government has levied 40% export tariff on coke, trying to direct more coke to the domestic market and restricting exports of pollution- and energy intensive products.
• China turns to alternative suppliers as cold winter in the country fastens Coal stock consumption and traditional Chinese suppliers, Australia and Indonesia, face weather problems. First Colombian cargoes were directed to China in January.

Week #1, week ending 8 January 2010

• globalCOAL weekly index DES ARA: 93,91 USD (RB 90,51 USD)
• Indonesia has produced 254 Million tonnes of Coal in 2009, an increase of 5,8% as compared to 2008 and exceeding the government target of 230 Million tonnes. 78% of the production was exported, mostly to consumers in Asia. The production target for 2010 is 280 million tonnes.
• China allocates over 900 Million tonnes rail capacity for 2010, out of which roughly 35 Million destined for Coal exports.
• India became 4th largest steel producer globally and may become No 2 in 2015 already. The hitherto consumption growth of 5-7 % in the last years may come even up to 10% p.a., resulting in production of 124 million tonnes by 2012. The rising trend is very likely to develop even further, as current steel consumption per capita shows 47 kg p.a. only.
• The unusually cold spell of winter in the Central Eastern Europe caused waterways around Berlin to freeze. These caused disruptions in Coal deliveries from Poland and pushed up prices for heating fuel, including gasoline and natural gas. Expected persistence of low temperatures may keep prices at high level.

Week #53, week ending 31 December 2009

globalCOAL weekly index DES ARA: 84,16 USD (RB 80,60 USD)

Week #52, week ending 24 December 2009

• globalCOAL weekly index DES ARA: 81,29 USD (RB 77,56 USD)
• 60 vessels are queueing at the Australian Newcastle port, waiting on average 13 days for loading. The queue is longest since two years and is caused by exports slowdown. 
• Coking Coal is one of most dynamically rising commodities, according to Canada's Scotiabank. As the supplies are tightening and global economy livening up, the price level is expected to move from the current 128 USD/mt to some 170 USD/mt and possibly even more.