Saturday, 25 Feb 2012
China Taiyuan Coal Transaction Center, China’s first trading platform for coal commodities, started operation today with 722,800 tons traded, the official Xinhua News Agency said, citing center Director Qu Jiawu.
All coal companies in Shanxi province are asked to trade 95% of their output at the center, which is located in Taiyuan, the provincial capital, Xinhua said. Coal production in Shanxi accounts for almost a quarter of the country’s total.
(Sourced from Bloomberg)
Showing posts with label Chinese coal news. Show all posts
Showing posts with label Chinese coal news. Show all posts
Saturday, February 25, 2012
Monday, January 30, 2012
China’s 2011 thermal power spending falls 26pct
Monday, 30 January 2012 sourced:Bloomberg
China spent 26 per cent less on building thermal power stations in 2011 than a year earlier as utility profits declined amid rising fuel costs and increases in electricity demand.
Investments in thermal plants, which include coal, oil and gas-fired generators, dropped to 105.4 billion yuan ($16.7bn), according to a report published on the website of the National Energy Administration today.
Profit margins at generators in China, the world’s biggest energy consumer, were squeezed by state-capped electricity tariffs and coal prices that rose to a three-year high in October. The government needs to promote spending in the sector to counter problems of shortages, said Dave Dai, the regional head of clean energy and utilities research at Daiwa Securities Capital Markets Ltd in Hong Kong.
“The fall in investment is mostly due to the power producers’ tough financial situation in the second half,” Dai said in an e-mail. “The government will need to help the producers become more profitable either in terms of tariff hikes or any type of reform to help sustain long-term return, to encourage more investments.”
Total spending for all types of power utilities fell 2.4bn yuan, or 0.3 per cent, to 739.3bn yuan in 2011 from a year earlier, according to the NEA. Nuclear power investments rose 14 per cent to 74bn yuan and hydro power gained 15 per cent to 94bn yuan, it said.
China raised the price of electricity paid to producers on December 1 after freezing tariffs for half a year to contain inflation.
Datang International Power Generation Co’s third-quarter net income fell 54 per cent from the year ago period, according to an October 25 statement to the Shanghai Stock Exchange. expansion.
China’s electricity generation in 2011 climbed 12 per cent to 4.6 trillion kilowatt-hours, according to data released on January 17 by the Beijing-based National Bureau of Statistics.
Thursday, January 26, 2012
China coal firm rejects fraud claims after shares tank
Thursday, 26 Jan 2012
Reuters reported that China Winsway Coking Coal Holdings Ltd dismissed a research report alleging financial fraud at the logistics company that sent its shares plunging on Thursday.
Hong Kong listed Winsway which made its market debut in 2010 and has a market value of HKD 7.2 billion said that nothing in a 10-page report by a company called Jonestown Research alleging fraud at the firm had been substantiated and that its accountants were reputable and had carried out due diligence.
Mr Jerry Xie Winsway Chief Financial Officer said "There is nothing funny or smelly in our prospectus."
He made the remarks in response to the Jonestown Research report, which alleged that "Winsway has material misstatements in its reported numbers that amount to securities fraud."
Mr Xie said "The information in the Jonestown report was unsubstantiated and wrong. KPMG will be fully behind us. We don't know if there will be a review. We need time to decide how to respond to this officially and if an investigation is warranted."
He said that "Jonestown was using Moody report to say Winsway is a fraud. I don't know how credible that report was. He added that Winsway would arrange tours to show investors the company was not a fraud.”
Jonestown Research said in a disclaimer at the end of its report that it had built a short position on Winsway shares and had every reason to want its stock price to go down.
No contact details for Jonestown were immediately available.
China-focused private equity fund Hopu Investment Management Co in May last year sold nearly half its stake in Winsway for around USD 82 million.
(Sourced from Reuters)
Thursday, December 22, 2011
China Bohai Rim steam coal price falls 1pct to CNY 821 per tonne
Thursday, 22 Dec 2011
Bloomberg reported that China Bohai-Rim Steam-Coal Price Index, which tracks power-station coal prices at six ports fell 1.1% to CNY 821 per ton as of today compared with a week earlier.
This is the sixth consecutive decline.
(Sourced from Bloomberg)
Bloomberg reported that China Bohai-Rim Steam-Coal Price Index, which tracks power-station coal prices at six ports fell 1.1% to CNY 821 per ton as of today compared with a week earlier.
This is the sixth consecutive decline.
(Sourced from Bloomberg)
Jingyuan Coal to acquire coal assets
Thursday, 22 Dec 2011
It is reported that Gansu Jingyuan Coal Industry And Electricity Power intends to issue 162.59 million shares to controlling shareholder, Jingyuan Coal Group at CNY 16.36 per share in order to purchase CNY 2.66 billion worth of coal assets from the latter.
The assets to be purchased include Baiyin Energy Saving Thermal, Qingmei Engineering Investigation, Jinghong Storage and Transportation, Jingyuan Coal Yilin Resource Development and other related assets.
The assets recorded total revenue of CNY 2.519 billion and net profit of CNY 286 million during the first three quarters of 2011. After the completion of the transaction, Jingyuan Coal Group will have 246 million shares or a 72.37% stake in the listed company.
The acquisitions will increase Jingyuan Coal recoverable coal reserves by 250 million tonnes and raise mine production volume by 7.63 million tons per year.
It was reported that the transaction will solve the problem of horizontal competition between Jingyuan Coal and Jingyuan Coal Group.
(Sourced from Shanghai Securities News)
It is reported that Gansu Jingyuan Coal Industry And Electricity Power intends to issue 162.59 million shares to controlling shareholder, Jingyuan Coal Group at CNY 16.36 per share in order to purchase CNY 2.66 billion worth of coal assets from the latter.
The assets to be purchased include Baiyin Energy Saving Thermal, Qingmei Engineering Investigation, Jinghong Storage and Transportation, Jingyuan Coal Yilin Resource Development and other related assets.
The assets recorded total revenue of CNY 2.519 billion and net profit of CNY 286 million during the first three quarters of 2011. After the completion of the transaction, Jingyuan Coal Group will have 246 million shares or a 72.37% stake in the listed company.
The acquisitions will increase Jingyuan Coal recoverable coal reserves by 250 million tonnes and raise mine production volume by 7.63 million tons per year.
It was reported that the transaction will solve the problem of horizontal competition between Jingyuan Coal and Jingyuan Coal Group.
(Sourced from Shanghai Securities News)
Friday, December 16, 2011
China Coal Energy coal output in Nov up by 14pct YoY
Friday, 16 Dec 2011
China Knowledge quoted according to a statement filed with the Shanghai Stock Exchange that China Coal Energy Co Ltd the country second-largest coal miner by revenue, produced 8.32 million tonnes of commercial coal in November this year reflecting a YoY increase of 13.8%.
Last month, China Coal Energy coke output amounted to 120,000 tonnes, down by 18.8%YoY. The company sold 10.09 million tonnes of coal in November representing a robust YoY increase of 10.2%.
In the first eleven months of this year, China Coal Energy produced 94.41 million tonnes of commercial coal up by 8.7%YoY.
During the period from January to November this year, the company coal sales reached 120.99 million tonnes increasing 11.5%YoY.
(Sourced from China Knowledge)
China Knowledge quoted according to a statement filed with the Shanghai Stock Exchange that China Coal Energy Co Ltd the country second-largest coal miner by revenue, produced 8.32 million tonnes of commercial coal in November this year reflecting a YoY increase of 13.8%.
Last month, China Coal Energy coke output amounted to 120,000 tonnes, down by 18.8%YoY. The company sold 10.09 million tonnes of coal in November representing a robust YoY increase of 10.2%.
In the first eleven months of this year, China Coal Energy produced 94.41 million tonnes of commercial coal up by 8.7%YoY.
During the period from January to November this year, the company coal sales reached 120.99 million tonnes increasing 11.5%YoY.
(Sourced from China Knowledge)
China's Coal Supply Sufficient - China Coal Association
Friday, 16 December 2011
China will see increased efforts in coal supply across the country, with the total coal production this year grew 300 million tonnes to over 3.5 billion tonnes as compared to 2010, the China Coal Industry Association was cited as saying.
The country's net imports of the fuel in 2011 are expected to reach around 150 million tonnes.
China has seen rapid growth in energy supply and demand in the first ten months as compared to the same period last year, propping up the national economy, said officials with the National Energy Committee.
Coal production and consumption each in January-October amounted to 3 billion tonnes, up 9.5% and 13.1% respectively; railways transported 1.88 billion tonnes of coal, an increment of 13.4%; power generation and consumption each totaled 4 billion kwh, up 12.3% and 11.9%; crude oil imports increased 8.6% to 210 million tonnes and refined oil consumption increased 5.6% to 200 million tonnes; natural gas supply was 100 billion cubic meters, up 20%.
In an effort to secure coal supply with the coming of year-end, China's Ministry of Railway improved its transportation plan as early as November and struggled to meet the nation's demand for the fuel. Currently, coal inventories at the country's 363 direct-supply power plants were sufficient for around 20 days of consumption.
However, the National Development and Reform Commission (NDRC), China's top economic planner, also warned that coal short supply would occur in some regions and considered it a tough task to ensure stable coal supply during the winter and coming spring.
The NDRC announced on November 30 adjustments for the prices of non-residential power and thermal coal in order to ease power shortages and reduce financial pressure on power companies.
The NDRC also said that it will allow the contract price of major thermal coal to float by no more than 5 percent next year, but the spot price of 5,500-kilocalorie coal should be capped within 800 yuan per tonne at major shipping ports.
The prices will stay in place until thermal coal prices stabilize on a national level, it said.
"The important thing is to control energy demand at a reasonable level and strengthen efforts in energy saving and emission reduction. We also need to spare no efforts to promote industrial structural adjustment in line with the 12th Five-year Plan and curb overcapacity and the excessive development of energy-intensive industries," said Zhang Guobao, an official with the National Energy Committee.
Industry experts expected a slowdown in energy-demand growth next year due to sluggish global economy, slower pace in national economic growth and increased efforts in energy saving and industrial structural adjustment.
China's coal capacity will grow year by year and its railway transportation capability will see marked increase, while the growth in power demand is expected to recede to around 10%, said a researcher with the NDRC.
The China Energy Research Society appealed, in a report about China's energy development in 2011, released recently, that China should focus on improving energy pricing mechanism during the 12th Five-year Plan Period and accelerate energy marketization.
Source: Steel Home
China will see increased efforts in coal supply across the country, with the total coal production this year grew 300 million tonnes to over 3.5 billion tonnes as compared to 2010, the China Coal Industry Association was cited as saying.
The country's net imports of the fuel in 2011 are expected to reach around 150 million tonnes.
China has seen rapid growth in energy supply and demand in the first ten months as compared to the same period last year, propping up the national economy, said officials with the National Energy Committee.
Coal production and consumption each in January-October amounted to 3 billion tonnes, up 9.5% and 13.1% respectively; railways transported 1.88 billion tonnes of coal, an increment of 13.4%; power generation and consumption each totaled 4 billion kwh, up 12.3% and 11.9%; crude oil imports increased 8.6% to 210 million tonnes and refined oil consumption increased 5.6% to 200 million tonnes; natural gas supply was 100 billion cubic meters, up 20%.
In an effort to secure coal supply with the coming of year-end, China's Ministry of Railway improved its transportation plan as early as November and struggled to meet the nation's demand for the fuel. Currently, coal inventories at the country's 363 direct-supply power plants were sufficient for around 20 days of consumption.
However, the National Development and Reform Commission (NDRC), China's top economic planner, also warned that coal short supply would occur in some regions and considered it a tough task to ensure stable coal supply during the winter and coming spring.
The NDRC announced on November 30 adjustments for the prices of non-residential power and thermal coal in order to ease power shortages and reduce financial pressure on power companies.
The NDRC also said that it will allow the contract price of major thermal coal to float by no more than 5 percent next year, but the spot price of 5,500-kilocalorie coal should be capped within 800 yuan per tonne at major shipping ports.
The prices will stay in place until thermal coal prices stabilize on a national level, it said.
"The important thing is to control energy demand at a reasonable level and strengthen efforts in energy saving and emission reduction. We also need to spare no efforts to promote industrial structural adjustment in line with the 12th Five-year Plan and curb overcapacity and the excessive development of energy-intensive industries," said Zhang Guobao, an official with the National Energy Committee.
Industry experts expected a slowdown in energy-demand growth next year due to sluggish global economy, slower pace in national economic growth and increased efforts in energy saving and industrial structural adjustment.
China's coal capacity will grow year by year and its railway transportation capability will see marked increase, while the growth in power demand is expected to recede to around 10%, said a researcher with the NDRC.
The China Energy Research Society appealed, in a report about China's energy development in 2011, released recently, that China should focus on improving energy pricing mechanism during the 12th Five-year Plan Period and accelerate energy marketization.
Source: Steel Home
Thursday, December 15, 2011
IEA: Chinese coal prices to impact global market in next five years
Thursday, 15 December 2011
The International Energy Agency (IEA) has stated that in the next five years coal prices in the Chinese market will impact the global coal market.
In its statement, the IEA said, "Coal is the most important source for generation of electricity. The Chinese market is the biggest consumer of coal, with its demand accounting for over half of global coal demand." The IEA went on to say that in the coming five years (2012-16) any major development or decision in the Chinese market would be expected to have a significant influence on the global coal market and on electricity charges.
Tags: coking coal , raw mat , China , Far East , steel futures , steelmaking , mining , East Asia and Pacific
Sourced:steelorbis
The International Energy Agency (IEA) has stated that in the next five years coal prices in the Chinese market will impact the global coal market.
In its statement, the IEA said, "Coal is the most important source for generation of electricity. The Chinese market is the biggest consumer of coal, with its demand accounting for over half of global coal demand." The IEA went on to say that in the coming five years (2012-16) any major development or decision in the Chinese market would be expected to have a significant influence on the global coal market and on electricity charges.
Tags: coking coal , raw mat , China , Far East , steel futures , steelmaking , mining , East Asia and Pacific
Sourced:steelorbis
Tuesday, December 13, 2011
China's Nov coal exports down 27% on year to 940,000 mt; up 19% from October
Tuesday, 13 December 2011
China exported 940,000 mt of coal in November, down 26.6% from a year ago but up 19% from October, preliminary figures released Saturday by the country's General Administration of Customs showed.
In the first eleven months of the year, China exported 13.85 million mt of coal, down 21.2% from a year ago.
Chinese customs authorities have yet to release November import figures, but industry sources estimated that China's coal imports hit a record high of 22 million-23 million mt last month, compared with 15.69 million mt in October and the current record high of 19.12 million mt in September. Large volumes of imported coal have apparently resulted in congestion at Chinese coal ports in November, they said.
Meanwhile, China exported 90,000 mt of coke in November, down 10% from October and down 75% year on year. In the first eleven months of the year, China exported 3.2 million mt of coke, up 6.6% year on year.
sourced Platts
China exported 940,000 mt of coal in November, down 26.6% from a year ago but up 19% from October, preliminary figures released Saturday by the country's General Administration of Customs showed.
In the first eleven months of the year, China exported 13.85 million mt of coal, down 21.2% from a year ago.
Chinese customs authorities have yet to release November import figures, but industry sources estimated that China's coal imports hit a record high of 22 million-23 million mt last month, compared with 15.69 million mt in October and the current record high of 19.12 million mt in September. Large volumes of imported coal have apparently resulted in congestion at Chinese coal ports in November, they said.
Meanwhile, China exported 90,000 mt of coke in November, down 10% from October and down 75% year on year. In the first eleven months of the year, China exported 3.2 million mt of coke, up 6.6% year on year.
sourced Platts
Tuesday, November 29, 2011
China to create 12 super-large coal firms with capacity over 100 million mt
Tuesday, 29 November 2011
According to new guidelines issued by the China National Coal Association (CNCA) for China's 12th five-year plan period, by the end of the period the number of large-scale coal enterprises in China is to be reduced to 4,000, including 12 super-large coal enterprises with annual output capacity above 100 million mt and a further 16 super-large coal enterprises with annual output capacity between 50 million mt and 100 million mt.
Meanwhile, according to the guidelines, the overall number of coal mines in China is to be kept below 10,000.
Tags: coking coal , raw mat , China , Far East , production , mining , East Asia and Pacific
Sourced:SteelOrbis
According to new guidelines issued by the China National Coal Association (CNCA) for China's 12th five-year plan period, by the end of the period the number of large-scale coal enterprises in China is to be reduced to 4,000, including 12 super-large coal enterprises with annual output capacity above 100 million mt and a further 16 super-large coal enterprises with annual output capacity between 50 million mt and 100 million mt.
Meanwhile, according to the guidelines, the overall number of coal mines in China is to be kept below 10,000.
Tags: coking coal , raw mat , China , Far East , production , mining , East Asia and Pacific
Sourced:SteelOrbis
Saturday, November 19, 2011
Chinese power plant margins worst since 2006 as coal prices rise
Saturday, 19 Nov 2011
Bloomberg reported that Chinese power plants face the smallest profit margins in at least five years as government mandated caps on electricity prices prevent utilities from passing along coal price increases.
According to data from Sanford C Bernstein & Co the CHART OF THE DAY shows the cost of coal in yuan per tonne as a percentage of what three benchmark plants in the cities of Taicang Changshu and Chaozhou can charge on average for their power supplies. Fuel expenses are 95.5% exceeding the proportion in 2008 when record coal prices contributed to blackouts in China. The lower panel shows YoY gains in China consumer price index.
Mr Michael Parker a senior analyst in Hong Kong at Bernstein said these plants highlight the difficulties that the entire sector is facing with high coal prices. The positive side for power producers is that inflation seems to be cooling, so there’s a good chance the government may increase tariffs.
China has kept electricity prices unchanged for more than five months as the government focused on fighting inflation which Premier Mr Wen Jiabao said last month was his top economic priority. The CPI in October rose 5.5% from the same period a year earlier compared with 6.1% in September. The MoM drop was the steepest in almost three years.
China State Council is reviewing a plan to increase electricity prices paid to power plants to ensure supplies after generation companies suffered losses because they had to shoulder rising costs. China is the world biggest coal user.
The nation power shortage may peak at 40 gigawatts in the winter and spring as demand growth outpaces supply, the China Electricity Council said last month. That would be about 4%of the country capacity and more than 20% of the generating power in India, the world second-most-populous nation. China suffered blackouts in 2008 as utilities curbed generation amid benchmark coal prices of as much as USD 168 per tonne. The price was at USD 156.20 on November 11 this year.
(Sourced from Bloomberg)
Bloomberg reported that Chinese power plants face the smallest profit margins in at least five years as government mandated caps on electricity prices prevent utilities from passing along coal price increases.
According to data from Sanford C Bernstein & Co the CHART OF THE DAY shows the cost of coal in yuan per tonne as a percentage of what three benchmark plants in the cities of Taicang Changshu and Chaozhou can charge on average for their power supplies. Fuel expenses are 95.5% exceeding the proportion in 2008 when record coal prices contributed to blackouts in China. The lower panel shows YoY gains in China consumer price index.
Mr Michael Parker a senior analyst in Hong Kong at Bernstein said these plants highlight the difficulties that the entire sector is facing with high coal prices. The positive side for power producers is that inflation seems to be cooling, so there’s a good chance the government may increase tariffs.
China has kept electricity prices unchanged for more than five months as the government focused on fighting inflation which Premier Mr Wen Jiabao said last month was his top economic priority. The CPI in October rose 5.5% from the same period a year earlier compared with 6.1% in September. The MoM drop was the steepest in almost three years.
China State Council is reviewing a plan to increase electricity prices paid to power plants to ensure supplies after generation companies suffered losses because they had to shoulder rising costs. China is the world biggest coal user.
The nation power shortage may peak at 40 gigawatts in the winter and spring as demand growth outpaces supply, the China Electricity Council said last month. That would be about 4%of the country capacity and more than 20% of the generating power in India, the world second-most-populous nation. China suffered blackouts in 2008 as utilities curbed generation amid benchmark coal prices of as much as USD 168 per tonne. The price was at USD 156.20 on November 11 this year.
(Sourced from Bloomberg)
Thursday, November 17, 2011
China October Coal Imports Shrink as Supplies Build, Group Says
Thursday, 17 November 2011
China’s coal imports fell 18 percent in October from the previous month after an increase in stockpiles at power plants, according to the China Coal Transport and Distribution Association.
China, the world’s biggest coal consumer, imported 15.7 million metric tons of the fuel last month, the association said in a statement on its website today, citing the General Administration of Customs. That was 28 percent higher than a year earlier. The customs bureau is scheduled to release official October coal import data Nov. 21.
The nation bought record amounts of coal in September to replenish inventories at heating plants and power stations and to meet winter demand. Power generation, which is more than 70 percent fueled by coal, fell to the lowest in eight months in October.
Stockpiles at China’s largest power stations rose 6.3 million tons from the end of September to 70.9 million tons as of Oct. 18, the equivalent of 20 days of consumption, according to the National Development and Reform Commission.
The nation’s industrial production growth of 13.2 percent last month was the least in a year and missed economists’ median estimate of 13.4 percent. Factories consume more than 70 percent of the nation’s electricity.
Source: Bloomberg
China’s coal imports fell 18 percent in October from the previous month after an increase in stockpiles at power plants, according to the China Coal Transport and Distribution Association.
China, the world’s biggest coal consumer, imported 15.7 million metric tons of the fuel last month, the association said in a statement on its website today, citing the General Administration of Customs. That was 28 percent higher than a year earlier. The customs bureau is scheduled to release official October coal import data Nov. 21.
The nation bought record amounts of coal in September to replenish inventories at heating plants and power stations and to meet winter demand. Power generation, which is more than 70 percent fueled by coal, fell to the lowest in eight months in October.
Stockpiles at China’s largest power stations rose 6.3 million tons from the end of September to 70.9 million tons as of Oct. 18, the equivalent of 20 days of consumption, according to the National Development and Reform Commission.
The nation’s industrial production growth of 13.2 percent last month was the least in a year and missed economists’ median estimate of 13.4 percent. Factories consume more than 70 percent of the nation’s electricity.
Source: Bloomberg
Tuesday, November 15, 2011
China power station coal price declines for first time in three months
Tuesday, 15 Nov 2011
Bloomberg reported that China benchmark thermal-coal price fell for the first time in three months dropping from a three year high as utilities finished building stockpiles for winter.
According to the China Coal Transport and Distribution Association coal with an energy value of 5,500 kilocalories per kilogram at Qinhuangdao port slid 0.6% to a range of CNY 845 to CNY 855 per tonne recently from a week earlier. That’s the first decline since August 14.
The National Development and Reform Commission said last month that Chinese utilities typically start to buy the fuel they need for winter heating demand in September and complete stockpiling by November. The nation largest power stations held 70.9 million tons of inventories as of October 18 the equivalent of 20 days of consumption.
Mr David Fang a director at the association said “Stockpiles at power stations are very high and there’s no reason why they need more than what they already have now. Prices will go even lower from here, at least until another round of stockpiling during the coldest periods early next year.”
According to the data inventories at Qinhuangdao which ships half of China seaborne coal supplies mined from inland regions fell 2.5% to 5.89 million tonnes as of yesterday from a week earlier.
(Sourced from Bloomberg)
Bloomberg reported that China benchmark thermal-coal price fell for the first time in three months dropping from a three year high as utilities finished building stockpiles for winter.
According to the China Coal Transport and Distribution Association coal with an energy value of 5,500 kilocalories per kilogram at Qinhuangdao port slid 0.6% to a range of CNY 845 to CNY 855 per tonne recently from a week earlier. That’s the first decline since August 14.
The National Development and Reform Commission said last month that Chinese utilities typically start to buy the fuel they need for winter heating demand in September and complete stockpiling by November. The nation largest power stations held 70.9 million tons of inventories as of October 18 the equivalent of 20 days of consumption.
Mr David Fang a director at the association said “Stockpiles at power stations are very high and there’s no reason why they need more than what they already have now. Prices will go even lower from here, at least until another round of stockpiling during the coldest periods early next year.”
According to the data inventories at Qinhuangdao which ships half of China seaborne coal supplies mined from inland regions fell 2.5% to 5.89 million tonnes as of yesterday from a week earlier.
(Sourced from Bloomberg)
Monday, November 14, 2011
Chinese reaffirm interest in Gething coal mine in northeast BC
Monday, 14 Nov 2011
It is reported that Canadian Kailuan Dehua Mines Co Ltd will address both environmental issues and aboriginal concerns surrounding the USD 860 million, Chinafinanced Gething coal mine in northeast BC
Ms Judy Matkaluk vice general manager of Canadian Kailuan Dehua said "CKD believe that through consultation with local first nations and communities that development of the Gething project can be accomplished while respecting the cultural and environmental values of all involved."
She said “It is important to CKD that first nations and residents of nearby communities share their local knowledge and ideas to meet these above objectives. Through such cooperation the best design and transportation options for the Gething Coal Mine can be implemented. CKD will be hosting multiple open houses to meet the local residents and share information of the area and the Gething project."
Ms Matkaluk said CKD is keen on investing in a foreign country where the government priority is on health, safety, protection of the environment and respect for the environment and culture of first nations and all stakeholders. She also said the Prince Rupert Port is an important gateway for China and can handle additional coal capacity.
Ms Matkaluk said CKD will minimize the environmental footprint of the mine and that first nation participation is a priority on all environmental matters. She said CKD believes that with its 133 years of experience and global reputation, it could accommodate all major concerns related to transportation corridors, building a mine site with minimal footprint on areas previously logged over, that by going underground there would be minimal surface impact compared to open pit development, and upon completion, reclamation could return the site to the forest cover that originally stood there.
She added that CKD has contracted a leading environmental company, Stantec, for a detailed environmental study.
Mr Roland Willson West Moberly First Nation Chief said the first nation is not opposed to mining, but in the case of the Gething project, situated near Hudson's Hope, the mine site would be on top of an area of strong cultural significance.
He said that the first nation has recommended to Gething proponents that they consider a mining operation on one of their nearby claims as an alternative. "So we are not saying no to everything, we are just saying no to a couple of these projects that have a serious impact on who we are."
Recently the government announced a new funding deal among Chinese backers for the Gething coal project, a 40 year metallurgical coal mine that would support 400 full time workers and thousands of spinoff jobs. However a northeast BC first nation chief said that it rejects the coal mine that was championed this week by Premier Christy Clark during her trade mission to Asia.
(sourced from vancouversun)
It is reported that Canadian Kailuan Dehua Mines Co Ltd will address both environmental issues and aboriginal concerns surrounding the USD 860 million, Chinafinanced Gething coal mine in northeast BC
Ms Judy Matkaluk vice general manager of Canadian Kailuan Dehua said "CKD believe that through consultation with local first nations and communities that development of the Gething project can be accomplished while respecting the cultural and environmental values of all involved."
She said “It is important to CKD that first nations and residents of nearby communities share their local knowledge and ideas to meet these above objectives. Through such cooperation the best design and transportation options for the Gething Coal Mine can be implemented. CKD will be hosting multiple open houses to meet the local residents and share information of the area and the Gething project."
Ms Matkaluk said CKD is keen on investing in a foreign country where the government priority is on health, safety, protection of the environment and respect for the environment and culture of first nations and all stakeholders. She also said the Prince Rupert Port is an important gateway for China and can handle additional coal capacity.
Ms Matkaluk said CKD will minimize the environmental footprint of the mine and that first nation participation is a priority on all environmental matters. She said CKD believes that with its 133 years of experience and global reputation, it could accommodate all major concerns related to transportation corridors, building a mine site with minimal footprint on areas previously logged over, that by going underground there would be minimal surface impact compared to open pit development, and upon completion, reclamation could return the site to the forest cover that originally stood there.
She added that CKD has contracted a leading environmental company, Stantec, for a detailed environmental study.
Mr Roland Willson West Moberly First Nation Chief said the first nation is not opposed to mining, but in the case of the Gething project, situated near Hudson's Hope, the mine site would be on top of an area of strong cultural significance.
He said that the first nation has recommended to Gething proponents that they consider a mining operation on one of their nearby claims as an alternative. "So we are not saying no to everything, we are just saying no to a couple of these projects that have a serious impact on who we are."
Recently the government announced a new funding deal among Chinese backers for the Gething coal project, a 40 year metallurgical coal mine that would support 400 full time workers and thousands of spinoff jobs. However a northeast BC first nation chief said that it rejects the coal mine that was championed this week by Premier Christy Clark during her trade mission to Asia.
(sourced from vancouversun)
Tuesday, November 8, 2011
China's Coal Imports steam Ahead
Tuesday, 08 November 11
Chinese seaborne coal imports have grown greatly in recent years, up from 39.2mt in 2008 to 167.7mt in 2010, with the result that China became a net coal importer in 2009.
Chinese seaborne steam coal imports equated to less than 5% of Chinese coal consumption in 2010. Despite this, China is now the world’s second largest steam coal importer, accounting for 13.7% of seaborne imports in 2010. Thus, any changes in China’s import volumes will have a major impact on the global seaborne steam coal trade.
The existence of a pricing arbitrage between domestic and international coal prices was the catalyst for the upturn in Chinese coal imports. In 2010, higher domestic prices led Chinese consumers to source more coal from the international market, where the price was lower. As the Graph of the Month shows, in January 2010, the price of Indonesian steam coal (spot price + freight) was $39 per tonne cheaper than the Chinese domestic price (spot price + coastal freight) in south China. As a result, China imported an average of 9.0mt per month in Q1 2010, compared to just 1.2mt in the same period of 2009.
However, during the first quarter of 2011, a reduced average of 5.4mt of coal was imported by China. This reflects a higher global coal price (up to $139 per tonne), which made domestic coal a more cost-effective option.
Other Factors
Since April this year, Chinese domestic steam coal prices have risen and now exceed international prices. Thus, Chinese imports reached 12.0mt in September, the largest volume on record.
Other factors, in addition to pricing, support this short-term movement towards coal imports. Firstly, there are fears about potential power shortages, following a sharp decline in hydroelectricity output (down 11.2% and 14.9% y-o-y in July and August respectively). Secondly, it is likely that there will also be heightened demand for coal for power generation, due to the onset of winter. The price arbitrage should stimulate imports, as should reports that the central government will lower taxes and port charges on imported coal.
Potential Limitations
In the medium-term, Chinese domestic coal production may be limited if the government drive for better mine safety leads to mine closures. However, this may not inevitably lead to heightened seaborne imports. Production in countries like Mongolia and regions like Inner Mongolia has been ramping up recently and a railway expansion programme, due to be completed in 2015, will facilitate large-scale coal exports from these areas.
However, it is important not to understate the long-term impact of Chinese demand on seaborne coal trade even though most coal currently consumed by China is produced domestically. Even if seaborne import’s share of Chinese coal demand were to increase by just 2% percentage points over the course of the next decade to stand at 5%, then(assuming long-term demand growth of 2.5%), this would equate to an extra 100mt of annual seaborne import requirements.
In the long-run, any developments along this line would offer a considerable upside for dry bulk trade.
source: Clarksons / Hellenic Shipping & coalspot.com
Chinese seaborne coal imports have grown greatly in recent years, up from 39.2mt in 2008 to 167.7mt in 2010, with the result that China became a net coal importer in 2009.
Chinese seaborne steam coal imports equated to less than 5% of Chinese coal consumption in 2010. Despite this, China is now the world’s second largest steam coal importer, accounting for 13.7% of seaborne imports in 2010. Thus, any changes in China’s import volumes will have a major impact on the global seaborne steam coal trade.
The existence of a pricing arbitrage between domestic and international coal prices was the catalyst for the upturn in Chinese coal imports. In 2010, higher domestic prices led Chinese consumers to source more coal from the international market, where the price was lower. As the Graph of the Month shows, in January 2010, the price of Indonesian steam coal (spot price + freight) was $39 per tonne cheaper than the Chinese domestic price (spot price + coastal freight) in south China. As a result, China imported an average of 9.0mt per month in Q1 2010, compared to just 1.2mt in the same period of 2009.
However, during the first quarter of 2011, a reduced average of 5.4mt of coal was imported by China. This reflects a higher global coal price (up to $139 per tonne), which made domestic coal a more cost-effective option.
Other Factors
Since April this year, Chinese domestic steam coal prices have risen and now exceed international prices. Thus, Chinese imports reached 12.0mt in September, the largest volume on record.
Other factors, in addition to pricing, support this short-term movement towards coal imports. Firstly, there are fears about potential power shortages, following a sharp decline in hydroelectricity output (down 11.2% and 14.9% y-o-y in July and August respectively). Secondly, it is likely that there will also be heightened demand for coal for power generation, due to the onset of winter. The price arbitrage should stimulate imports, as should reports that the central government will lower taxes and port charges on imported coal.
Potential Limitations
In the medium-term, Chinese domestic coal production may be limited if the government drive for better mine safety leads to mine closures. However, this may not inevitably lead to heightened seaborne imports. Production in countries like Mongolia and regions like Inner Mongolia has been ramping up recently and a railway expansion programme, due to be completed in 2015, will facilitate large-scale coal exports from these areas.
However, it is important not to understate the long-term impact of Chinese demand on seaborne coal trade even though most coal currently consumed by China is produced domestically. Even if seaborne import’s share of Chinese coal demand were to increase by just 2% percentage points over the course of the next decade to stand at 5%, then(assuming long-term demand growth of 2.5%), this would equate to an extra 100mt of annual seaborne import requirements.
In the long-run, any developments along this line would offer a considerable upside for dry bulk trade.
source: Clarksons / Hellenic Shipping & coalspot.com
Saturday, November 5, 2011
China credit squeeze hits coal price
Saturday, 05 Nov 2011
According to producer and traders, Chinese private traders' struggle to open letters of credit during the past three weeks has been the primary cause of the 8% fall in coal prices seen since the start of October.
They said coal prices will not recover until China resumes buying in force. Thermal coal benchmark prices have lost nearly USD 10 a tonne since the start of October since China which had been almost single handedly absorbing the world surplus spot coal, stepped out of the market.
They said a similar pattern has developed in coking coal, iron ore and base metals buying.
Chinese coal importers often private companies who act as agents for a group of state utilities have continued to enquire for spot cargoes and have told suppliers they should be able to start buying again within a week or two.
China has been raising interest rates and banks' reserve requirement ratio to fight inflation. Premier Mr Wen Jiabao said on Tuesday it will remain the government's top priority.
Chinese importers said that a few of them have asked to delay shipments because of high stockpiles. The spot coal tonnage traded globally which drives the benchmark prices is a tiny portion of annual seaborne trade in excess of 750 million tonnes and but China buying this year of cargoes which had nowhere else to go has been a huge price influence without China, prices would have slipped a lot sooner.
China September coal imports were a record 19.1 million tonnes including over 900,000 tonnes from South Africa. October and November imports are expected to show a steep fall.
1. All imports hit
Mr Colin Hamilton Macquarie analyst said "Credit restrictions are affecting everything that is imported. He said that restrictions were more severe earlier in October but the situation is starting to ease now.”
He added that "The last couple of weeks have been tough for credit, they've really screwed it down banks are telling their clients they don't have enough cash for them to allow new LCs to be opened and without that, they can't buy, one major coal trader who supplies the Chinese market. It's starting to ease up now, but in another week or so we'll know if that is the case because buying will resume."
According to another supplier of large volumes to China importers want the coal and are mostly managing to open LCs just in time for shipment.
He said that "A month ago the were opening LCs 45 days prior to shipment and now its about 10 days prior quite tight timing but it's working and nobody's asked us to delay yet."
2. Shadow Banks Pressured
One major South African exporter said "This seems purely a credit issue, the shadow banks are having their wings clipped and people who are intermediaries for state end users need credit and at lease some of the coal bought and due to be shipped soon was financed by shadow banks."
He said that "Shadow banks lend at a higher rate of interest and then pass that on at an even higher rate and this sector is under pressure."
Companies which have been regular suppliers of South African, Colombian, Indonesian and Australian coal to China this year said the hiatus in Chinese buying did not seem to be a straight exercise to bring prices down before swooping in to buy on a large-scale.
One said "If they wanted to play price games then they'd say they couldn't open older LCs at higher prices but could open a new lower-priced LC and that's not happening."
However, the fall in prices which kicked in swiftly as soon as importers began to feel the credit squeeze is likely to be an accidental benefit for the importers.
Any cooling in Chinese commodity spot buying tends to give the suppliers who have grown to depend upon it a nasty shock but sellers are interpreting the current slowdown as temporary, citing steady enquiries for thermal, coking coal and iron ore.
Producers and traders said coking coal prices have also started to soften in the past month but the outlook is positive.
A UK based coking coal physical trader said "When the market sentiment changes coking coal will be one of the first commodities to see a strong price increase coking coal is in very short supply."
A European steel derivatives trader said "I don't think coking coal prices are going to have the same drop as iron ore prices did, I think that train has run its course."
(sourced from Vancouversun)
According to producer and traders, Chinese private traders' struggle to open letters of credit during the past three weeks has been the primary cause of the 8% fall in coal prices seen since the start of October.
They said coal prices will not recover until China resumes buying in force. Thermal coal benchmark prices have lost nearly USD 10 a tonne since the start of October since China which had been almost single handedly absorbing the world surplus spot coal, stepped out of the market.
They said a similar pattern has developed in coking coal, iron ore and base metals buying.
Chinese coal importers often private companies who act as agents for a group of state utilities have continued to enquire for spot cargoes and have told suppliers they should be able to start buying again within a week or two.
China has been raising interest rates and banks' reserve requirement ratio to fight inflation. Premier Mr Wen Jiabao said on Tuesday it will remain the government's top priority.
Chinese importers said that a few of them have asked to delay shipments because of high stockpiles. The spot coal tonnage traded globally which drives the benchmark prices is a tiny portion of annual seaborne trade in excess of 750 million tonnes and but China buying this year of cargoes which had nowhere else to go has been a huge price influence without China, prices would have slipped a lot sooner.
China September coal imports were a record 19.1 million tonnes including over 900,000 tonnes from South Africa. October and November imports are expected to show a steep fall.
1. All imports hit
Mr Colin Hamilton Macquarie analyst said "Credit restrictions are affecting everything that is imported. He said that restrictions were more severe earlier in October but the situation is starting to ease now.”
He added that "The last couple of weeks have been tough for credit, they've really screwed it down banks are telling their clients they don't have enough cash for them to allow new LCs to be opened and without that, they can't buy, one major coal trader who supplies the Chinese market. It's starting to ease up now, but in another week or so we'll know if that is the case because buying will resume."
According to another supplier of large volumes to China importers want the coal and are mostly managing to open LCs just in time for shipment.
He said that "A month ago the were opening LCs 45 days prior to shipment and now its about 10 days prior quite tight timing but it's working and nobody's asked us to delay yet."
2. Shadow Banks Pressured
One major South African exporter said "This seems purely a credit issue, the shadow banks are having their wings clipped and people who are intermediaries for state end users need credit and at lease some of the coal bought and due to be shipped soon was financed by shadow banks."
He said that "Shadow banks lend at a higher rate of interest and then pass that on at an even higher rate and this sector is under pressure."
Companies which have been regular suppliers of South African, Colombian, Indonesian and Australian coal to China this year said the hiatus in Chinese buying did not seem to be a straight exercise to bring prices down before swooping in to buy on a large-scale.
One said "If they wanted to play price games then they'd say they couldn't open older LCs at higher prices but could open a new lower-priced LC and that's not happening."
However, the fall in prices which kicked in swiftly as soon as importers began to feel the credit squeeze is likely to be an accidental benefit for the importers.
Any cooling in Chinese commodity spot buying tends to give the suppliers who have grown to depend upon it a nasty shock but sellers are interpreting the current slowdown as temporary, citing steady enquiries for thermal, coking coal and iron ore.
Producers and traders said coking coal prices have also started to soften in the past month but the outlook is positive.
A UK based coking coal physical trader said "When the market sentiment changes coking coal will be one of the first commodities to see a strong price increase coking coal is in very short supply."
A European steel derivatives trader said "I don't think coking coal prices are going to have the same drop as iron ore prices did, I think that train has run its course."
(sourced from Vancouversun)
Jiangxi Coal Goup to issue CNY 600 million in notes
Saturday, 05 Nov 2011
China Knowledge reported that Jiangxi Coal Group Corp a state owned coal producer in China will issue CNY 600 million worth of medium term notes with a maturity of three years on November 9.
The company said in a statement that the notes will be issued at face value and the coupon rate be determined during the process of book building. Both value date and payment due date is November 11 and the to-be-issued notes tradable on November 14.
The company will use CNY 200 million of the proceeds to replenish its working capital and the remaining CNY 400 million for project investment.
China Chengxin International Credit Rating Co Ltd has rated the issuer and notes AA and AA respectively. China CITIC Bank Corp has been hired as lead underwriter for the offering.
(Sourced from China Knowledge)
China Knowledge reported that Jiangxi Coal Group Corp a state owned coal producer in China will issue CNY 600 million worth of medium term notes with a maturity of three years on November 9.
The company said in a statement that the notes will be issued at face value and the coupon rate be determined during the process of book building. Both value date and payment due date is November 11 and the to-be-issued notes tradable on November 14.
The company will use CNY 200 million of the proceeds to replenish its working capital and the remaining CNY 400 million for project investment.
China Chengxin International Credit Rating Co Ltd has rated the issuer and notes AA and AA respectively. China CITIC Bank Corp has been hired as lead underwriter for the offering.
(Sourced from China Knowledge)
Friday, November 4, 2011
Heilongjiang coke prices edge down
Friday, 04 Nov 2011
Coke market edges down in northeast China's Heilongjiang province.
The ex-works price of II grade metallurgical coke drops by CNY 30 per tonne to CNY 1,850 per tonne in Qitaihe, in Hegang and Shangyashan, the II grade metallurgical coke price is priced at CNY CNY 1,850 per tonne and CNY 1,840 per tonne down CNY 30 per tonne.
Industry sources report that Chinese steel mills increase efforts to press down purchase price for raw materials and cut back purchase. Coking enterprises have no other choice but to accept it. Currently, several steel mills continue to suspend purchasing the steel-making ingredient.
sourced SteelHome.cn
Coke market edges down in northeast China's Heilongjiang province.
The ex-works price of II grade metallurgical coke drops by CNY 30 per tonne to CNY 1,850 per tonne in Qitaihe, in Hegang and Shangyashan, the II grade metallurgical coke price is priced at CNY CNY 1,850 per tonne and CNY 1,840 per tonne down CNY 30 per tonne.
Industry sources report that Chinese steel mills increase efforts to press down purchase price for raw materials and cut back purchase. Coking enterprises have no other choice but to accept it. Currently, several steel mills continue to suspend purchasing the steel-making ingredient.
sourced SteelHome.cn
China Bohai Thermal coal prices hit all time high
Friday, 04 Nov 2011
It is reported that the latest Bohai-Rim Steam-Coal Price Index or BSPI indicates that the average price of thermal coal with calorific value of 5500 kilocalories per kilogram reached an all-time high of CNY 853 per tonne in the week ending October 26.
The price was up CNY 6 per tonne or 0.71%t from a week earlier and an increase of CNY 28 per tonne compared with September 7 when a rebound was seen after nine consecutive weeks’ fall.
At Qinhuangdao port, the price of 5500 kilocalories per kilogram and 5800 kilocalories per kilogram thermal coal was up CNY 5 per tonne to CNY 850 per tonne to CNY 860 per tonne and CNY 900 per tonne to CNY 910 per tonne respectively compared with the previous week while that of 4500 kilocalories per kilogram and 5000 kilocalories per kilogram thermal coal kept stable at CNY 650 per tonne to CNY 660 per tonne and CNY 745 per tonne to CNY 755 per tonne.
In China's main coal-producing regions, such as Shanxi and Inner Mongolia, coal prices have remained stable after previous weeks upswing. Coal prices in these two regions have perched high for several weeks on speculation that China may face another round of power shortage in the coming winter. And the tough coal transport capacity may be one of the main reasons to bolster up the price.
(source: steelhome.cn/en)
It is reported that the latest Bohai-Rim Steam-Coal Price Index or BSPI indicates that the average price of thermal coal with calorific value of 5500 kilocalories per kilogram reached an all-time high of CNY 853 per tonne in the week ending October 26.
The price was up CNY 6 per tonne or 0.71%t from a week earlier and an increase of CNY 28 per tonne compared with September 7 when a rebound was seen after nine consecutive weeks’ fall.
At Qinhuangdao port, the price of 5500 kilocalories per kilogram and 5800 kilocalories per kilogram thermal coal was up CNY 5 per tonne to CNY 850 per tonne to CNY 860 per tonne and CNY 900 per tonne to CNY 910 per tonne respectively compared with the previous week while that of 4500 kilocalories per kilogram and 5000 kilocalories per kilogram thermal coal kept stable at CNY 650 per tonne to CNY 660 per tonne and CNY 745 per tonne to CNY 755 per tonne.
In China's main coal-producing regions, such as Shanxi and Inner Mongolia, coal prices have remained stable after previous weeks upswing. Coal prices in these two regions have perched high for several weeks on speculation that China may face another round of power shortage in the coming winter. And the tough coal transport capacity may be one of the main reasons to bolster up the price.
(source: steelhome.cn/en)
Tuesday, November 1, 2011
Winsway and Marubeni to acquire Grande Cache Coal
Tuesday, 01 Nov 2011
China’s Winsway Coking Coal Holdings Ltd and Japan’s Marubeni Corp. agreed to acquire Canadian metallurgical coal producer Grande Cache Coal Corp. for about CAD 1 billion.
Winsway and Marubeni will pay CAD 10 a share in cash, 112% more than its 20 day volume weighted average trading price. As per report “Winsway and Marubeni are offering CAD 9 a ton of coal reserves, which is more than the average of CAD 2.91 a ton for comparable North American metallurgical coal transactions and less than the CAD 17.86 a ton Walter paid for Western Coal.”
Grande Cache, which mines in west central Alberta, forecast sales of 2.2 million tons to 2.4 million tons in the year ended March 2012.
Winsway imports metallurgical coal into China and Marubeni is Japan’s fifth largest trading company.
The Grande Cache agreement includes a break fee of CAD 50 million payable by Grande Cache if the deal isn’t completed. Winsway and Marubeni will pay Cad 100 million if they scrap the deal.
The acquisition, which requires approval by two-thirds of Grande Cache shareholders and a majority of Winsway shareholders, is expected to close in February.
Deutsche Bank AG and UBS AG are advising Grande Cache and Burnet Duckworth & Palmer LLP is the company’s legal counsel. The acquirers are being advised by Toronto-Dominion Bank and law firm Osler, Hoskin & Harcourt LLP.
(Sourced from Bloomberg)
China’s Winsway Coking Coal Holdings Ltd and Japan’s Marubeni Corp. agreed to acquire Canadian metallurgical coal producer Grande Cache Coal Corp. for about CAD 1 billion.
Winsway and Marubeni will pay CAD 10 a share in cash, 112% more than its 20 day volume weighted average trading price. As per report “Winsway and Marubeni are offering CAD 9 a ton of coal reserves, which is more than the average of CAD 2.91 a ton for comparable North American metallurgical coal transactions and less than the CAD 17.86 a ton Walter paid for Western Coal.”
Grande Cache, which mines in west central Alberta, forecast sales of 2.2 million tons to 2.4 million tons in the year ended March 2012.
Winsway imports metallurgical coal into China and Marubeni is Japan’s fifth largest trading company.
The Grande Cache agreement includes a break fee of CAD 50 million payable by Grande Cache if the deal isn’t completed. Winsway and Marubeni will pay Cad 100 million if they scrap the deal.
The acquisition, which requires approval by two-thirds of Grande Cache shareholders and a majority of Winsway shareholders, is expected to close in February.
Deutsche Bank AG and UBS AG are advising Grande Cache and Burnet Duckworth & Palmer LLP is the company’s legal counsel. The acquirers are being advised by Toronto-Dominion Bank and law firm Osler, Hoskin & Harcourt LLP.
(Sourced from Bloomberg)
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