HMS Weekly Coal and Energy Resources News
Week #9, week ending 5 March 2010
- globalCOAL weekly index DES ARA: 74.60 USD (RB 84.19 USD)
- Polish miners consider filing an anti-dumping suit for the EU's protection against cheap Russian imports. Main players on the domestic market, KW, KHW and JSW want the EU to introduce a special anti-dumping duty to stop a constant influx of cheaper Russian Coal: approximately 10 Million tonnes were imported from Russia in 2009, whereas domestic production fell by 7,5 %.
- Vietnam is expected to switch from a Coal exporter (currently exporting 17 Million tonnes from 44 Million tonnes production) to a Coal importer. The switch is expected 2012/2013 and by 2020 Vietnam may import as much as 100 Million tonnes. Vinacomin and PV Coal, two state-owned companies, are understood to have the exclusivity rights to import Coal to Vietnam.
Source: globalCoal, Reuters, The Asia Miner.
Week #8, week ending 26 February 2010
- globalCOAL weekly index DES ARA: 75.94 USD (RB 83.94 USD)
- World coking Coal index launched by Energy Publishing after a long debate between producers and traders. The indices will be: 1. CCQ used for premium hard coking coal (Queensland); 2. CCH-LOW, based on premium low vol coking coal (East Coast of the US) 3. CCH-HIGH, a Type A high vol coking coal (East Coast of the US).
- India's economic growth may exceed 8% in the incoming fiscal year according to Financial Ministry projections. At the same time the government tries to reduce India's debt, aiming at 68% in 2015 from the current 82%.
- Indian power utilities are projected to import 48 million tonnes in the new fiscal year starting April 1st. This will double the current imports, estimated at 20 million tonnes.
Source: globalCoal, Energy Publishing, Livemint.
Week #7, week ending 19 February 2010
- globalCOAL weekly index DES ARA: 75.24 USD (RB 81.46 USD)
- China Coal Energy Company has won tender to modernise Uzbekistan' s Coal industry by 2011 for roughly 120 Million USD.
- SAIL starts its attempt to secure supplies is looking for coking Coal blocks abroad. Acquisition of own resources would help to provide the Steel-hungry India with reliable supplies.
- After finishing construction of the first part of the railway line linking Elginskoye coal mine to the Baikal-Amur Mainland railroad, the second part (200 kms) is planned to be ready by September 2010. Mechel, the field owner, will be able to transport about 25 Million tonnes per year to China and to far East ports.
Source: globalCoal, China Knowledge, Business Line, Energy Publishing.
Week #6, week ending 12 February 2010
- globalCOAL weekly index DES ARA: 73.41 USD (RB 81.38 USD)
- Russian Coal producers are getting only slim margins due to increasing production and transportation costs and prevailing low prices on the international markets. Strong competition from currently cheap Colombian Coal makes Russian Coal appear expensive in the Baltic Sea, however logistics bottlenecks prevent Russian producers from directing more cargoes to the far East, where the Asian market is giving higher returns.
- Indian and Turkish steelmakers are especially desperate to buy high priced cargoes of Coking coal at a peak levels in order to secure supplies. As spot market offers are very rare, steelmakers are ready to take deferred cargoes from 2008/2009 contracts at a price level of 300-320 USD/mt.
- India might experience Coal shortage shock and thus endanger its energy security. Combined factors of declining domestic production, reviving Chinese demand and specifications requirements, which enable Indian power plants to blend imported Coal with the domestic ones only in particular proportions. This development may result in an increase in the international market.
Source: globalCoal, Reuters, Financial Times, en.sxcoal.com.
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.
Source: globalCoal, China Coal Resources, PTI, Energy Publishing
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.
Source: globalCoal, en.sxcoal.com, Argus Media, Dow Jones, Energy Publishing.
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.
Source: globalCoal, Bloomberg, Argus Media, Business Standard.
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.
Source: globalCoal, Bloomberg, Argus Media, Business Standard.
