Global coal market news
The global spot market for thermal coal has grown swiftly
as volatile prices, which has tumbled about 60 percent since a
record high of $200 a tonne in July, drive producers to seek
more contract flexibility. Rising prices last year have also
driven utilities, especially those in Europe, to work harder to
manage their costs amid liberalising power and gas markets. Please double click on the codes in brackets below to see
recent Reuters stories on coal.
ASIAN COAL MARKET
REPORT…………..[COAL/ASIA] EUROPEAN COAL MARKET
REPORT………..[COAL/EURO] TOP STORIES > Asia Coal-Prices
fall near 21-mth low, oil to give [nJAK67564] > China
Coal-Prices little changed despite plunge ab[nSHA100485] >
China adds $10 bln to commodity stockpiling budget [nPEK17046]
> China seen seeking policies to raise coal costs
[ID:nPEK18898] > China’s Datang: breakeven coal price 400 yuan
[ID:nPEK38354] > China Datang making losses, seeks imports
[ID:nSHA349855] > Thermal coal trade to shrink 2.6 pct in
’09-ABA[ID:nSYD502465] > Australia coal miners wrestle Japan
firms on price[nSYD411286] > Indonesia may miss 2009 coal
output target-officia[nJAK415573] > Indonesia delays new trade
rule opposed by exporte[nJAK165589] > SAfrica faces power
distribution crisis-minister[ID:nL3168536] > S.Africa says keen
to go green on energy supply [ID:nL4605615] > Eskom looks at
solar for next baseload plant [ID:nWEA0653] > India’s MSTC
to raise coal imports next fiscal [ID:nDEL002692] > Anglo cuts
650 Australia coal jobs to fight cos[ID:nSYD372972] > US coal
supplies rise 1.5 pct for week [ID:nN03381158] > Baltic
dry freight index rises to highest this year[nL5338324] MARKETS
> Asia Coal-Prices fall near 21-mth low, oil to give
[nJAK67564] > Euro Coal-Prices little changed from Wednesday
[nL5936767] > April S.Africa coal cargo trades at $57.00/T FOB
[nL5921370] > May delivery coal trades at $59.00/T DES ARA
[ID:nL2275962] > S.Korea’s KOMIPO awards 16 cargoes in coal
tend [ID:nSP471339] > S.Korea’s KEWESPO awards 800,000 tonnes
in coal ten[nSP478968] STOCKS, IMPORT/EXPORT DATA > Australia
Newcastle coal exports, queues fall [ID:nSYD439282] EXCLUSIVE
ON REUTERS > Coal mines attract cash-flush bargain hunters
[ID:nL5582977] > Costs to keep US carbon storage from coal
elusi[ID:nN05454520] > Low prices, downturn could alter Aussie
CO2 scheme [nSP406539] > Turkey’s Soyak to invest $1 bln in
power output [ID:nL5925061] CORPORATE > China Shenhua plans
$725 mln Inner Mongolia railwa[nSHA170445] > China Shenhua
2008:prelim net profit up 30 pct [ID:nHKG348578] > Xstrata
shareholders approve $5.9 bln rights iss[ID:nL2205742] > Lanna
says Indonesian coal mine restarted March[ID:nBKK398330] > UAE
fund plans Indonesia coal rail link [nJAK271569]
RECURRING MARKET REPORTS European physical market…………[COAL/EURO] European swaps market……………[DERIV/COAL] Australian spot prices…………..[COAL/ASIA] North America coal market………..[COAL/US] STOCKS AND
IMPORT/EXPORT DATA Australia Newcastle stocks……….[NEWC/COAL] S. Africa’s Richards Bay stocks…..[BAY/COAL] TRADES AND
TENDERS Spot trades…[COAL/TRADE\] Coal tenders…[COAL/TEND]
COAL PRICES McCloskeys weekly physical spot/freight
prices.. API4 coal paper prices,
McCloskeys………… API2 coal paper prices,
McCloskeys………… (Compiled by Fayen Wong)
China Coal-Prices little changed despite plunge abroad
SHANGHAI, March 5 – China‘s spot coal prices were little changed from a week earlier, despite the sharp fall in the international market, and demand for coal remains sluggish.
Prices of thermal coal in Newcastle, Australia, a benchmark for Asia, dropped to the lowest level in nearly 20 months, to below $65 per tonne, according to globalCOAL.
But the falling prices are unlikely to boost China‘s coal imports, as the domestic demand, as well as spot prices, remain weak, industry sources said.
“Power plants simply would not buy, no matter how cheap the coal is. Demand for electricity is still low,” said a coal trader based in the southern province of Guangdong.
The freight rates and tax put prices of imported Australian coal are on par with those of domestic coal, he added.
At Qinhuangdao, China‘s top coal shipping port, thermal coal with a heating value of 6,000 kcal/kg was quoted in the range of 580-600 yuan ($84.8-$87.7) per tonne, unchanged from a week earlier, according to the Qinhuangdao Seaborne Coal Market (www.cqcoal.com).
Coal with a heating value of 5,500 kcal/kg edged down less than 1 percent on the week to 550-560 yuan ($80.4-$81.8) per tonne, down 8 percent from a year earlier, the market said on its website.
“Thermal coal is currently a demand story. The price movement in the future will depend on the overall economy,” said Henry Liu, an analyst at Macquarie.
A key gauge of Chinese manufacturing improved in February for the third month in a row as factories restocked in anticipation of an early revival in the economy despite deepening global gloom. [ID:nPEK16693]
The industrial output figures, including power output, for the first two months of the year are scheduled to be released next week.
Felix Studying Coal Acquisitions in India, Indonesia
By Jesse Riseborough
March 6 (Bloomberg) — Felix Resources Ltd., an Australian supplier of coal to Korea and Japan, is studying acquisitions of energy coal assets in India and Indonesia after last month shelving talks to sell itself to another company.
“Indonesia and India are the two areas we are having a look at,” Brian Flannery, 57, managing director of Brisbane-based Felix, said in an interview. The company is talking to “large groups” in India that are looking to build new power stations, he said. Indonesia is the biggest exporter of energy coal.
India is planning to build nine 4,000 megawatt capacity power stations to double coal-fired electricity production by 2017, according to Australia’s commodity forecaster. Prices for the fuel rose to a record last year on rising demand from Asia, boosting Felix’s profit threefold to A$166 million ($106 million) and taking cash on hand to A$340 million as of last month.
“If you take the bet that there is going to be a rapid increase in energy demand in India, which would be the case, then India is your first choice to develop supply, with Indonesia probably a close second,” said Mark Pervan, senior commodity strategist at Australia and New Zealand Banking Group Ltd. “This is really a locality strategy.”
Felix rose 0.6 percent to A$7.05 at the 4:10 p.m. Sydney time close on the Australian stock exchange, after gaining as much as 8.1 percent earlier. The stock has dropped 20 percent this year and has a market value of A$1.4 billion.
Demand for imported coal in India will rise over the next five years as new power stations are built in coastal areas, Flannery said.
The company will also study merger and acquisition opportunities in Australia in the next six months given recent share price declines, he said.
Felix has “decided to move on” after shelving talks on a possible takeover last month, Flannery said. Talks are on ongoing, “however given the world financial environment it is unlikely that these discussions will be concluded in the near term,” the company said in a Feb. 27 statement.
Indian energy coal imports will more than triple to as much as 100 million metric tons by 2012 as new power plants are built, Coal and Oil Group, the country’s largest importer of the fuel, said last month.
The nine planned power stations will each consume as much as 15 million metric tons of coal annually, the Canberra-based Australian Bureau of Agricultural and Resource Economics said in a report this week. There will be “strong growth” in Indian coal demand over the medium term, it said.
The country imported 34 million tons of coal last year, the bureau said. Thermal coal contract prices, at a record $125 a ton for the year ending March 31, may drop to $75 a ton in the year starting April 1, RBC said.