Week #33, week ending 20 August 2010
- globalCOAL weekly index DES ARA: 91.99 USD (RB 86.22 USD)
- Global coal export capacity is expected to rise by 36% till 2015, 5% pa., reaching total capacity of 1,38 Billion tonnes, according to a report issued by Norwegian investment bank DnB NOR Markets. Especially Colombia, South Africa and Russia will experience substantial capacity growth, while Australia will keep its dominant position. Except for new port facility development, improvement of railway networks will increase practical throughput in the ports.
- Mongolia, with its vast Coal resources, may become main challenger for Australia for coking Coal supplies to China. It has been reported than 10-15 Million tonnes of recoverable reserves are available and they could be delivered to China under 100 USD/mt mark.
- 7 Million tonnes of potential exports could be lost this year in Newcastle. The Waratah Coal Services Terminal, with total throughput capacity of 113 Mtpa, is using 95,65 Mtpa. Though some losses are inevitable, yet better coordination of the transport chain system might increase the factual capacity by additional 5 Million tonnes annually, so one of producers.
- Platts to introduce India Thermal Coal Price Assessment starting from 1st September. The index will refer to physical spot market level of standardised Coal from Richards Bay, South Africa (CV GAR 6300 kcal/kg min, 1,4% Sulphur max, Ash 16% max) and will be provided on CFR basis delivered to Indian ports.
Week #32, week ending 13 August 2010
- globalCOAL weekly index DES ARA: 92.67 USD (RB 87.30 USD)
• Brazil has increased its Coal imports by 44% for the first half of 2010, as compared y/y, its total imports reaching almost 9 Million tonnes. The top exporter to Brazil remains USA, followed by Australia and further by Canada and Russia. - China's coking capacity has reached 390-400 Million tonnes/y, which is above factual market demand estimated at 280-290 Million tonnes. This condition holds though government regulations requiring shutting down some 26 Million tonnes capacity allocated to 192 producers, which should bring consolidation on the market and leave only a few major producers.
- China and India may become main Coal importers from South Africa: in H1 2010 almost half of the exports were directed to these countries. According to SA statistical data China has imported 2% of its total Coal imports in 2009, as compared to 0,07% in 2008.
Week #31, week ending 6 August 2010
- globalCOAL weekly index DES ARA: 94.66 USD (RB 90.20 USD)
- Russia major Coal producers, SUEK and KRU have slightly reduced their exports as compared to first half of 2009. SUEK has exported 13,3 Million tonnes and KRU 12 Million tonnes, down respectively by 2 and 2,4 %. The accident in the SUEK's export oriented Kotinskaya mine and its closure has resulted in 500 Thousand losses in export.
- China is planning to issue its thermal Coal price index which will incorporate spot coal prices from the ports of Qinhuangdao, Jingtang, Caofeidian and Huanghua and build a reference price for further sales to energy intensive eastern and south-eastern provinces. So far spot price released issued on weekly basis contribute to transparency on the market.
- Polish mining equipment producer Kopex Group is developing first in Indonesia mechanised underground Coal mine. The project is being carried out in South Kalimantan in a mine belonging to Banpu concern.
Week #29, week ending 23 July 2010
- globalCOAL weekly index DES ARA: 92.47 USD (RB 90.52 USD)
- Indonesia holds its position as the world's largest Coal exporter, exporting 141,25 Million tonnes of Coal in the first half of 2010. Only in June almost 24,5 Million tonnes were exported, more than 30% increase as compared to May. China and India take altogether more than 40% of Indonesian exports. Especially India has increased its share, making use of attractive freights. Growing interest of Indian utilities in Indonesian Coal is visible in many large-scale investment projects, which are under consideration.
- Slower than expected Chinese growth may bring the Richards Bay API4 down even by 10 USD/mt, predict analysts from Deutsche Bank in their recently published report. Though the outlooks for thermal Coal in the long term are good, yet slowing production and seasonal high supply of hydropower have considerably lowered China imports, which might affect exporting countries.
Week #30, week ending 30 July 2010
- globalCOAL weekly index DES ARA: 92.29 USD (RB 89.60 USD)
- Brazilian steelmakers see prices for prime quality metallurgical Coal settling around 240 USD/mt FOB for June shipments. Though this price level, offered by large producers, means a price decrease from 275 USD/mt in May, Brazilian steelmakers refuse to accept it, claiming it is far too high. Smaller producers offer considerably better rates and deals at the level 200-220 USD/mt, or even as low as 190USD/mt were reported.
- Zimbabwean government is likely to soon open up for private investors and private-public partnerships for large projects in energy sector. The country is currently depending on energy imports and is facing frequent energy supply disruptions, which is slowing down the development of the economy. Zimbabwe has vast energy resources base, including hydropower, Coal and Coal-bed methane.
Week #28, week ending 16 July 2010
- globalCOAL weekly index DES ARA: 92.76 USD (RB 90.21 USD)
- World's first biomass market to be developed in the Netherlands: so far the Anglo-Dutch energy exchange APX-ENDEX has informed on signing a letter of intention on this project, indicating the need for standardised biomass trade. APX-ENDEX will provide a trading platform as well as clearing and settlement services, profiting from Rotterdam Port's logistics and operational expertise.
- German-Nigerian Partnership plans to go ahead with a construction of a Coal power plant in northern Gombe province of Nigeria. The Partnership has been established in 2007 to support Nigeria, an energy rich country, in energy infrastructure projects by offering German expertise and know how in the industry.
Week #27, week ending 9 July 2010
- globalCOAL weekly index DES ARA: 93.11 USD (RB 90.29 USD)
- Russia wants to develop Coal terminals in major Russian ports to support the Coal industry, says Kommersant citing deputy Prime Minister Igor Sechin. This measure is a part of national Coal development strategy, which is expected to be ready by the end of the year. In the meantime Russia is strongly increasing its seaborne exports. The Vostochny port, the Russian largest Coal exports hub in the Pacific Ocean, expects 20% volume increase in 2010 to reach almost 17 Million tonnes.
- Vietnam has launched construction of a 600 MW strong Nghi Son 1 power plant in coastal Thanh Hoa province, roughly 150 kilometres south of Hanoi. The 1,2 Billion USD project, which is to a large extent financed by Japan, is expected to be fully operational by 2014. Construction of this power plant is aiming at prevention of currently frequent blackouts and at provision of energy security to the fast developing Vietnamese economy (15% increase in electricity consumption pa).
- South African Coal exports to China are on the rise again, as Chinese utilities, making use of low freights are looking for spot cargos. The trend continues from June on, when 720 Thousand tonnes were shipped to China, as compared no exports in April and May.
Week #26, week ending 2 July 2010
- globalCOAL weekly index DES ARA: 93.52 USD (RB 91.60 USD)
- Colombia aims at increasing its Coal exports to 80 Million tonnes, up from 72 Million tonnes in 2009. Cerrejon LCC, the biggest Colombian producer, accounts for over 30 Million tonnes. Coal hungry India greatly contributes to expansion of Colombian production.
- Germany aspires to become Europe's central electricity and energy hub. Germany, the biggest EU economy, has very well developed energy market, comparably high liquidity in financial operations and attractive geographical location.
- Prices for Canadian Western Coal premium HCC is likely to rise by 12% for next quarter reaching 225USD/mt, say analysts from Scotiabank. The market is experiencing some tightness due to cyclone damage and rail problems in Australia as well as blast at other large producer in Canada.