Tue, December27, 2011
Tianjin port shipped 6.72 million tonnes of coal in November, decreasing 600,000 tonnes versus 7.32 million tonnes in October, while up 21.09% or 1.17 million tonnes from a year earlier.
Coal shipment in the first eleven months totaled 77.44 million tonnes, surging 30.7% or 18.17 million tonnes compared with the same period last year and 13 million tonnes more than the port's total shipment of 64.48 million tonnes in 2010.
Tianjin port has 16 coal-handling berths, with an annual throughput capacity of 85 million tonnes.
(source:Steel Home,Hellenic Shipping)
Showing posts with label Coal stockpiles. Show all posts
Showing posts with label Coal stockpiles. Show all posts
Tuesday, December 27, 2011
Tuesday, November 29, 2011
MPSEZ rises on delivering record amount of coal a day
Tuesday, Nov 29, 2011
Mundra Port and Special Economic Zone rose 2.77% at Rs. 129.75 at 11:06 IST after the company said that its West Basin bulk coal handling terminal has delivered a record 62,718 tonnes a day coal to Adani Power's plant located adjacent to the port.
The announcement was made after market hours on Monday, 28 November 2011.
Meanwhile, the BSE Sensex was down 46.46 points, or 0.29%, to 16,120.67.
On BSE, 1.13 lakh shares were traded in the counter as against an average daily volume of 2.12 lakh shares in the past one quarter.
The stock hit a high of Rs. 130.55 and a low of Rs. 125.30 so far during the day. The stock had hit a 52-week low of Rs. 115.25 on 25 November 2011. The stock had hit a 52-week high of Rs. 169.75 on 28 October 2011.
The stock had underperformed the market over the past one month until 28 November 2011, sliding 22.50% compared with the Sensex's 9.20% decline. The scrip had also underperformed the market in past one quarter, falling 9.95% as against 2.01% rise in the Sensex.
The large-cap private port and special economic zone has an equity capital of Rs. 400.68 crore. Face value per share is Rs. 2.
This large tranche of coal was delivered through a world class high speed conveyor belt at a speed of 6,000 tonnes per hour. The belt runs across 20 kilometre from the port to the power plant, a statement by Mundra Port and Special Economic Zone (MPSEZ) said.
Adani Power, one of the country's largest private thermal power producers, is setting up a 4,620 megawatts (MW) power plant in Mundra, Gujarat while Tata Power is constructing a 4,000 MW ultra mega power project at the same location.
“The accomplishment of import and time-bound delivery of first such large tranche of coal establishes MPSEZ's prowess in developing world-class port infrastructure in India and abroad. The feat could be achieved by better planning skills, state-of-the-art Mundra Port and Special Economic Zone Limited mechanization and dedication of the port operator, displaying its leadership position in the port infrastructure sector,” said Dr. Malay Mahadevia, Whole Time Director at MPSEZ.
The West Basin is Asia's largest coal import terminal and has been set up to primarily cater to supply imported coal to the power plants in the region. It can handle capsize vessels up to 250,000 deadweight tonnes (DWT) and will have draft of 19.5 meters when fully developed.
Mundra Port is expanding the West Basin terminal and construction for the fourth berth is going on in full swing. The company is also investing heavily in augmentation of the material handling system to cater to additional volumes of imported coal for power plants in the vast North West Indian hinterland.
Last month, Mundra Port also commenced double stack container trains to help control transportation costs. The trains are running from Mundra Port to Patli near Gurgaon, Haryana, thus connected Northern India to the west.
Net profit of MPSEZ rose 29.17% to Rs. 273.42 crore on 44.20% rise in net sales to Rs. 587.76 crore in Q2 September 2011 over Q2 September 2010.
Mundra Port provides cargo handling and other value-added port services. Mundra SEZ is India's first port-based multi-product special economic zone.
Sourced IIFL
Mundra Port and Special Economic Zone rose 2.77% at Rs. 129.75 at 11:06 IST after the company said that its West Basin bulk coal handling terminal has delivered a record 62,718 tonnes a day coal to Adani Power's plant located adjacent to the port.
The announcement was made after market hours on Monday, 28 November 2011.
Meanwhile, the BSE Sensex was down 46.46 points, or 0.29%, to 16,120.67.
On BSE, 1.13 lakh shares were traded in the counter as against an average daily volume of 2.12 lakh shares in the past one quarter.
The stock hit a high of Rs. 130.55 and a low of Rs. 125.30 so far during the day. The stock had hit a 52-week low of Rs. 115.25 on 25 November 2011. The stock had hit a 52-week high of Rs. 169.75 on 28 October 2011.
The stock had underperformed the market over the past one month until 28 November 2011, sliding 22.50% compared with the Sensex's 9.20% decline. The scrip had also underperformed the market in past one quarter, falling 9.95% as against 2.01% rise in the Sensex.
The large-cap private port and special economic zone has an equity capital of Rs. 400.68 crore. Face value per share is Rs. 2.
This large tranche of coal was delivered through a world class high speed conveyor belt at a speed of 6,000 tonnes per hour. The belt runs across 20 kilometre from the port to the power plant, a statement by Mundra Port and Special Economic Zone (MPSEZ) said.
Adani Power, one of the country's largest private thermal power producers, is setting up a 4,620 megawatts (MW) power plant in Mundra, Gujarat while Tata Power is constructing a 4,000 MW ultra mega power project at the same location.
“The accomplishment of import and time-bound delivery of first such large tranche of coal establishes MPSEZ's prowess in developing world-class port infrastructure in India and abroad. The feat could be achieved by better planning skills, state-of-the-art Mundra Port and Special Economic Zone Limited mechanization and dedication of the port operator, displaying its leadership position in the port infrastructure sector,” said Dr. Malay Mahadevia, Whole Time Director at MPSEZ.
The West Basin is Asia's largest coal import terminal and has been set up to primarily cater to supply imported coal to the power plants in the region. It can handle capsize vessels up to 250,000 deadweight tonnes (DWT) and will have draft of 19.5 meters when fully developed.
Mundra Port is expanding the West Basin terminal and construction for the fourth berth is going on in full swing. The company is also investing heavily in augmentation of the material handling system to cater to additional volumes of imported coal for power plants in the vast North West Indian hinterland.
Last month, Mundra Port also commenced double stack container trains to help control transportation costs. The trains are running from Mundra Port to Patli near Gurgaon, Haryana, thus connected Northern India to the west.
Net profit of MPSEZ rose 29.17% to Rs. 273.42 crore on 44.20% rise in net sales to Rs. 587.76 crore in Q2 September 2011 over Q2 September 2010.
Mundra Port provides cargo handling and other value-added port services. Mundra SEZ is India's first port-based multi-product special economic zone.
Sourced IIFL
Tuesday, November 15, 2011
Coal importers face huge loss as stocks top 11 MT
Tuesday, 15 Nov, 2011
NEW DELHI: More than 11 million tonnes of imported coal, enough to light up five cities as big as Delhi, are stacked at Indian ports for over four months as power producers refuse to buy costly coal despite acute fuel shortage.
The importers face huge loss as the depreciation of the rupee and the recent fall in international coal prices add to their woes. Industry insiders said coal stockpile at various ports reached record level as traders were initially not willing to sell the commodity at loss. Disinterest among power generating companies to blend imported coal that increases electricity tariff also led to the glut. Industry sources said traders under pressure from creditors wanted to sell quickly.
"About 11.57 million tonnes of coal is lying at the ports. The traders, mostly small and inexperienced ones, bought coal from Indonesia and South Africa at higher prices. But the traders are holding the stock as they would not even be able to recover the costs with the kind of purchase offers being received," a senior official in Bhatia International said.
Global coal prices have come down by $5 a tonne in the past few months due to slowdown in various economies.
Rupee fell to a two-and-half-year low of 50.42 against dollar on Friday on the back of weak industrial production data and a sliding stock market.
Deloitte director consulting (mining) Dipesh Dipu said traders would be in lurch as dollar has become expensive and rent and repayment charges add to the costs.
"The traders placed coal supply orders a few months back when the rupee was trading at about 43-44 to a dollar. When the coal landed at the ports, rupee had started to fall and was about 48 to a dollar. Today, they are receiving enquiries at about 7% less than the prevailing price," a senior official in Adani Enterprises said.
The coal at ports could meet about 70% of the imported coal requirement of the country's largest power producer NTPC that has 35,000-mw generating capacity. NTPC targets to import about 16 million tonnes of coal this fiscal.
A senior NTPC official said the company was blending 10-15% of imported coal at most of its stations, but there were no buyers for expensive power generated by burning imported coal.
Jindal Power's RS Sharma said this could be a good opportunity for power companies to procure imported coal at low prices, but there was no demand for costly electricity. He said blending 10% of the imported fuel rises electricity tariff by 35-40 paise. Cash strapped distribution utilities were resorting to load shedding rather than purchasing electricity.
A senior power ministry official said even if companies get imported coal at low cost, most private power producers did not have enough domestic coal to blend. Indian power plants can accommodate only up to 15% of imported coal that has to be blended with domestic coal.
(sourced ET)
NEW DELHI: More than 11 million tonnes of imported coal, enough to light up five cities as big as Delhi, are stacked at Indian ports for over four months as power producers refuse to buy costly coal despite acute fuel shortage.
The importers face huge loss as the depreciation of the rupee and the recent fall in international coal prices add to their woes. Industry insiders said coal stockpile at various ports reached record level as traders were initially not willing to sell the commodity at loss. Disinterest among power generating companies to blend imported coal that increases electricity tariff also led to the glut. Industry sources said traders under pressure from creditors wanted to sell quickly.
"About 11.57 million tonnes of coal is lying at the ports. The traders, mostly small and inexperienced ones, bought coal from Indonesia and South Africa at higher prices. But the traders are holding the stock as they would not even be able to recover the costs with the kind of purchase offers being received," a senior official in Bhatia International said.
Global coal prices have come down by $5 a tonne in the past few months due to slowdown in various economies.
Rupee fell to a two-and-half-year low of 50.42 against dollar on Friday on the back of weak industrial production data and a sliding stock market.
Deloitte director consulting (mining) Dipesh Dipu said traders would be in lurch as dollar has become expensive and rent and repayment charges add to the costs.
"The traders placed coal supply orders a few months back when the rupee was trading at about 43-44 to a dollar. When the coal landed at the ports, rupee had started to fall and was about 48 to a dollar. Today, they are receiving enquiries at about 7% less than the prevailing price," a senior official in Adani Enterprises said.
The coal at ports could meet about 70% of the imported coal requirement of the country's largest power producer NTPC that has 35,000-mw generating capacity. NTPC targets to import about 16 million tonnes of coal this fiscal.
A senior NTPC official said the company was blending 10-15% of imported coal at most of its stations, but there were no buyers for expensive power generated by burning imported coal.
Jindal Power's RS Sharma said this could be a good opportunity for power companies to procure imported coal at low prices, but there was no demand for costly electricity. He said blending 10% of the imported fuel rises electricity tariff by 35-40 paise. Cash strapped distribution utilities were resorting to load shedding rather than purchasing electricity.
A senior power ministry official said even if companies get imported coal at low cost, most private power producers did not have enough domestic coal to blend. Indian power plants can accommodate only up to 15% of imported coal that has to be blended with domestic coal.
(sourced ET)
Sunday, October 16, 2011
Coal crisis deepens, power units may shut down
Sun,October 16, 2011
By Sudheer Pal Singh & Mansi Taneja
The government might have announced diversion of spot market coal to bridge the supply shortages for long-term consumers in the power sector, but experts see the move as “grossly inadequate”. As coal shortage has touched unprecedented levels, coal stock position at power stations has gone from bad to worse forcing the power industry to brace itself for a possible closure of some units.
A host of issues including heavy rains disrupting coal supply, workers’ strike at largest producer Coal India and Telangana agitation in the South have snapped fuel supply at power stations over the past month. More than half of the country’s 86 thermal power stations are currently running at “critical” stocks of less than seven days, while more than a third of the plants have become “super critical”, according to Central Electricity Authority (CEA), the apex power sector planning body.
The crisis has even made short-term power prices and volumes at the exchanges go haywire. “The average power tariff has increased to around Rs 7-7.50 per unit, from Rs 2.5-3.5 about 20 days back, due to mismatch in demand and supply. The traded volume in the exchange has come down to 35,000MW/hr from 1 lakh MW/hr on a daily basis,” India Energy Exchange senior vice president for business development Rajesh Mediretta said.
The crisis has even made short-term power prices and volumes at the exchanges go haywire. “The average power tariff has increased to around Rs 7-7.50 per unit, from Rs 2.5-3.5 about 20 days back, due to mismatch in demand and supply. The traded volume in the exchange has come down to 35,000MW/hr from 1 lakh MW/hr on a daily basis,” India Energy Exchange senior vice president for business development Rajesh Mediretta said.
The situation is unprecedented. “This is surely one of the most critical situations that we have faced ever,” power secretary Anil Razdan told Business Standard. “The lesson to learn is that we cannot leave the coal production programme entirely in the hands of a monopoly,” he added, referring to dismal performance of Coal India that supplies over 80 per cent of India’s coal.
By Sudheer Pal Singh & Mansi Taneja
The government might have announced diversion of spot market coal to bridge the supply shortages for long-term consumers in the power sector, but experts see the move as “grossly inadequate”. As coal shortage has touched unprecedented levels, coal stock position at power stations has gone from bad to worse forcing the power industry to brace itself for a possible closure of some units.
A host of issues including heavy rains disrupting coal supply, workers’ strike at largest producer Coal India and Telangana agitation in the South have snapped fuel supply at power stations over the past month. More than half of the country’s 86 thermal power stations are currently running at “critical” stocks of less than seven days, while more than a third of the plants have become “super critical”, according to Central Electricity Authority (CEA), the apex power sector planning body.
The crisis has even made short-term power prices and volumes at the exchanges go haywire. “The average power tariff has increased to around Rs 7-7.50 per unit, from Rs 2.5-3.5 about 20 days back, due to mismatch in demand and supply. The traded volume in the exchange has come down to 35,000MW/hr from 1 lakh MW/hr on a daily basis,” India Energy Exchange senior vice president for business development Rajesh Mediretta said.
The crisis has even made short-term power prices and volumes at the exchanges go haywire. “The average power tariff has increased to around Rs 7-7.50 per unit, from Rs 2.5-3.5 about 20 days back, due to mismatch in demand and supply. The traded volume in the exchange has come down to 35,000MW/hr from 1 lakh MW/hr on a daily basis,” India Energy Exchange senior vice president for business development Rajesh Mediretta said.
The situation is unprecedented. “This is surely one of the most critical situations that we have faced ever,” power secretary Anil Razdan told Business Standard. “The lesson to learn is that we cannot leave the coal production programme entirely in the hands of a monopoly,” he added, referring to dismal performance of Coal India that supplies over 80 per cent of India’s coal.
The ongoing crisis had forced the coal ministry to announce earmarking a part of the 4 MT coal sold through e-auction to meet shortages in Fuel Supply Agreements (FSAs) yesterday. Experts were not too optimistic over the move and called it “a temporary relief measure” at best.
“The quantity to be diverted from e-auction would be a major issue. Making available only a part of 4 MT quantity from the spot market would not make a huge difference. It cannot be a sustainable long-term strategy,” said Shubhranshu Patnaik, Senior Director, Deloitte Touche Tohmatsu.
He also added that another issue with the coal ministry’s formula of diverting e-auction coal was logistics. “Coal sold through auction is not spread across the country. It is not made available (CIL) subsidiary-wise. Transporting this coal from one region where the mine is located to another region where a plant is situated would become a problem,” Patnaik said.
Demand for coal in India has grown at an annual rate, exceeding 8.4 per cent over the past five years. Supply has, however, fallen grossly short, registering a dismal annual growth rate of 5.4 per cent during the same period. For 2011-12, while India’s coal demand is estimated at 696 MT, 554 MT is likely to be available, leaving a gap of 142 MT to be met through imports.
Coal Minister Sri Prakash Jaiswal, who has chaired multiple urgent meetings with coal ministry officials and chairmen of Coal India subsidiary companies in the past one week assured of making supplies available. “Production and offtake has been less than target in the past two months. Mahanadi Coalfields and Northern Coalfields are among the major defaulters. But I have been assured the situation is only temporary and will improve soon,” he said.
Acting to avert the crisis, the coal ministry has promised smooth coal availability for plants facing the heat, particularly in the northern region. The ministry has also increased daily supply of rakes to 169, including 148 rakes for the power sector. “Total despatches are likely to further increase to 180 in the next few days, of which 145 rakes will be supplied to power plants,” a release issued by the ministry read.
However, the domestic power industry has sounded the alarm bells saying closure of some extremely critical units could be imminent. “If there is not enough coal to tide over the lead time (during which the fuel is transported from mine head to the station) as the crisis continues, closure of at least some units is obvious,” Ashok Khurana, Director General of Association of Power Producers (APP), told Business Standard.
The crisis is impacting even merchant power generation.
Out of the 4,000 MW demand for traded power, only 1,500 MW is met as there are not enough sellers on the exchanges, said Mediretta. Jindal Steel and Power, Lanco Infratech and JSW Enregy are currently among the highest traders in merchant power.
According to another power industry expert, this trend will continue for some time as the distribution companies are going out of the way to tie-up the power because of the low supply scenario. He said the merchant power rates will remain on the higher side, till the issues is addressed.
(sourced Business Standard)
Sunday, August 14, 2011
European coal rises on demand for cheaper alternative to gas
Sunday, 14 Aug 2011
Bloomberg reported that European coal rose for a third day on speculation demand may strengthen because the fuel is a cheaper alternative to natural gas.
Mr Mark Pervan an analyst at Australia & New Zealand banking Group Ltd said thermal coal burned to make electricity climbed 65 cents or 0.5% to USD 127 per ton on course for the highest close since August 3. Coal appears to be relatively cheap compared to gas power.
Natural gas futures for September delivery slipped 0.2% to USD 4.101 for a million British thermal units on the New York Mercantile Exchange. Prices recently rose the most since July 15 after a government report showed a smaller-than-forecast gain in U.S. inventories.
Barclays Capital said European coal prices are also supported by regional restocking demand.
(Sourced from Bloomberg)
Bloomberg reported that European coal rose for a third day on speculation demand may strengthen because the fuel is a cheaper alternative to natural gas.
Mr Mark Pervan an analyst at Australia & New Zealand banking Group Ltd said thermal coal burned to make electricity climbed 65 cents or 0.5% to USD 127 per ton on course for the highest close since August 3. Coal appears to be relatively cheap compared to gas power.
Natural gas futures for September delivery slipped 0.2% to USD 4.101 for a million British thermal units on the New York Mercantile Exchange. Prices recently rose the most since July 15 after a government report showed a smaller-than-forecast gain in U.S. inventories.
Barclays Capital said European coal prices are also supported by regional restocking demand.
(Sourced from Bloomberg)
Monday, July 25, 2011
South Africa coal miners start strike
Mon Jul 25, 2011
* Eskom sees no immediate impact from coal strike
* Above inflation wage deals hurting economy, analysts
By Agnieszka Flak and Olivia Kumwenda
JOHANNESBURG, July 25 - Tens of thousands of South African coal workers went on strike on Monday seeking inflation-busting 14 percent wage increases, but power utility Eskom said the
stoppage would not have an immediate impact on plants providing electricity to Africa's largest economy.
Hundreds of thousands of workers across the country have downed tools in recent weeks, or are threatening to do so, seeking raises double or triple the 5 percent inflation rate in the mid-year bargaining session known locally as "strike season".
State-run Eskom , which relies on coal for most of its power generation, said the latest strike would only have an impact if it became protracted.
"We've got on average 38 days of coal stockpiles at the power stations," spokesman Tony Stott said.
Lesiba Seshoka, spokesman for the powerful National Union of Mineworkers (NUM), said about 150,000 were on strike and employers have offered pay rises of 7 to 8.5 percent.
The chamber of mines said there are about 30,000 unionised workers in the coal sector and it was unclear how many were striking.
Employers over the past two years have struck wage deals averaging about 8 percent with many firms seeing the above-inflation settlements as a necessary cost of doing business in South Africa. They have also slashed jobs over the period to make up for the higher personnel costs.
Independent coal analyst Xavier Prevost said: "If there is no compromise and they continue like this, it's going to be serious and the damage to the economy will be big."
"If we don't produce coal, the first to be affected will be exports. Our (export) stockpiles will probably not last longer than 15 days".
The Richards Bay Coal Terminal, which ships most of South Africa's coal abroad, said stocks stood at a healthy 2.99 million tonnes at the end of June.
Eskom has been under pressure to build new plants to avoid a repeat of the power shortage that brought the economy to its knees in 2008, forcing mines to shut down for days and costing
the country billions of dollars in lost output.
It plans steep increases in electricity prices to pay for much-needed new power stations, adding to inflationary pressures and taking more money out of middle-class paychecks.
But Eskom is facing political pressure to settle with workers. The country's ruling African National Congress is allied with organised labour and wants to placate its millions of voters.
The Chamber of Mines is negotiating on behalf of several coal mining groups, including Anglo Thermal Coal SA , Exxaro , Optimum Coal and Xstrata Coal.
Read more
Why Coal Prices Will Soar in the Coming Years
Lontoh Coal Limited of South Africa has planned to open up China’s market
Coal prices area at US$ 120 a tonne
Mozambi Coal to acquire Mozambican coal concession
Newcastle steam coal price rises by 1pct
S.Africa's June coal exports rise to 4.78 mln T
Coal of Africa shares up almost 20%
* Eskom sees no immediate impact from coal strike
* Above inflation wage deals hurting economy, analysts
By Agnieszka Flak and Olivia Kumwenda
JOHANNESBURG, July 25 - Tens of thousands of South African coal workers went on strike on Monday seeking inflation-busting 14 percent wage increases, but power utility Eskom said the
stoppage would not have an immediate impact on plants providing electricity to Africa's largest economy.
Hundreds of thousands of workers across the country have downed tools in recent weeks, or are threatening to do so, seeking raises double or triple the 5 percent inflation rate in the mid-year bargaining session known locally as "strike season".
State-run Eskom , which relies on coal for most of its power generation, said the latest strike would only have an impact if it became protracted.
"We've got on average 38 days of coal stockpiles at the power stations," spokesman Tony Stott said.
Lesiba Seshoka, spokesman for the powerful National Union of Mineworkers (NUM), said about 150,000 were on strike and employers have offered pay rises of 7 to 8.5 percent.
The chamber of mines said there are about 30,000 unionised workers in the coal sector and it was unclear how many were striking.
Employers over the past two years have struck wage deals averaging about 8 percent with many firms seeing the above-inflation settlements as a necessary cost of doing business in South Africa. They have also slashed jobs over the period to make up for the higher personnel costs.
Independent coal analyst Xavier Prevost said: "If there is no compromise and they continue like this, it's going to be serious and the damage to the economy will be big."
"If we don't produce coal, the first to be affected will be exports. Our (export) stockpiles will probably not last longer than 15 days".
The Richards Bay Coal Terminal, which ships most of South Africa's coal abroad, said stocks stood at a healthy 2.99 million tonnes at the end of June.
Eskom has been under pressure to build new plants to avoid a repeat of the power shortage that brought the economy to its knees in 2008, forcing mines to shut down for days and costing
the country billions of dollars in lost output.
It plans steep increases in electricity prices to pay for much-needed new power stations, adding to inflationary pressures and taking more money out of middle-class paychecks.
But Eskom is facing political pressure to settle with workers. The country's ruling African National Congress is allied with organised labour and wants to placate its millions of voters.
The Chamber of Mines is negotiating on behalf of several coal mining groups, including Anglo Thermal Coal SA , Exxaro , Optimum Coal and Xstrata Coal.
Read more
Why Coal Prices Will Soar in the Coming Years
Lontoh Coal Limited of South Africa has planned to open up China’s market
Coal prices area at US$ 120 a tonne
Mozambi Coal to acquire Mozambican coal concession
Newcastle steam coal price rises by 1pct
S.Africa's June coal exports rise to 4.78 mln T
Coal of Africa shares up almost 20%
Monday, March 28, 2011
Euro coal June DES ARA trades at USD 128 per tonne
Monday, 28 Mar 2011
Traders and utilities said that prompt European physical coal prices held steady again on Friday, held up more by strong swaps values than physical demand.
Utility sources said that demand for coal in Europe has shrivelled now that German utilities have bought what they need for the near-term and stockpiles in France, Britain and Scandinavia are fairly high.
A European utility source said that "We're still getting offers of almost every type of coal but there's nowhere to put it even if the discount to API2 drops further and we were tempted to buy.”
Prices of close to USD 130.00 a tonne DES ARA do not reflect the abundance of coal supply in Europe but have been hoisted to that level by strong coal swaps prices.
Traders said that swaps have been reacting more to oil volatility and Middle East unrest plus an improvement in the dark spread the profit to be made from generating using coal as fuel, rather than fundamental factors.
One trader said that "Europe is horrible at the moment. Nobody's buying anything, not even the Scandinavians.”
Low water levels on the Rhine and Danube rivers mean barges carrying coal cannot sail fully loaded. This is also dissuading German buyers from taking more prompt coal at present.
In Asia the market seems to be rebalancing quickly after the initial panic about distressed cargoes as a result of the Japanese earthquake and tsunami. (sourced Thomson Reuters)
Traders and utilities said that prompt European physical coal prices held steady again on Friday, held up more by strong swaps values than physical demand.
Utility sources said that demand for coal in Europe has shrivelled now that German utilities have bought what they need for the near-term and stockpiles in France, Britain and Scandinavia are fairly high.
A European utility source said that "We're still getting offers of almost every type of coal but there's nowhere to put it even if the discount to API2 drops further and we were tempted to buy.”
Prices of close to USD 130.00 a tonne DES ARA do not reflect the abundance of coal supply in Europe but have been hoisted to that level by strong coal swaps prices.
Traders said that swaps have been reacting more to oil volatility and Middle East unrest plus an improvement in the dark spread the profit to be made from generating using coal as fuel, rather than fundamental factors.
One trader said that "Europe is horrible at the moment. Nobody's buying anything, not even the Scandinavians.”
Low water levels on the Rhine and Danube rivers mean barges carrying coal cannot sail fully loaded. This is also dissuading German buyers from taking more prompt coal at present.
In Asia the market seems to be rebalancing quickly after the initial panic about distressed cargoes as a result of the Japanese earthquake and tsunami. (sourced Thomson Reuters)
Wednesday, February 2, 2011
Gladstone Port: coal stocks over 50% normal volume
Wed, 1 Feb 2011,
PERTH Feb2 (Reuters) - Australia's Gladstone Port Corp said on Wednesday that its stockpiles have increased to just over 1 million tonnes of coal as it recovers from the flooding that disrupted coal supplies, little more than half the 2 million tonnes it normally holds.
The port, which is outside the warning area for Cyclone Yasi and does not expect to be affected by the storm, expects to ship about 500,000 tonnes of coal this week, the company said in a statement.
(Reporting by Rebekah Kebede; editing by James Regan, sourced:reuters)
PERTH Feb2 (Reuters) - Australia's Gladstone Port Corp said on Wednesday that its stockpiles have increased to just over 1 million tonnes of coal as it recovers from the flooding that disrupted coal supplies, little more than half the 2 million tonnes it normally holds.
The port, which is outside the warning area for Cyclone Yasi and does not expect to be affected by the storm, expects to ship about 500,000 tonnes of coal this week, the company said in a statement.
(Reporting by Rebekah Kebede; editing by James Regan, sourced:reuters)
Wednesday, January 26, 2011
Coking coal prices to skyrocket as stockpiles dry up, Queensland coking coal index has risen to $US365/tonne
By Matt Chambers From: The Australian
January 24, 2011
COKING coal prices are expected to surge through a record $US400/tonne this week as exports from Queensland's drenched Bowen Basin slip because stockpiles at mines and ports are running out and full rail capacity is yet to return.
Prices for Queensland coking coal jumped $US33/tonne to $US383 last week, up 70 per cent on quarterly contract prices of $US225/tonne, according to the latest Platts assessments quoted by Macquarie.
"There is not enough slack in the metallurgical (coking) coal supply chain to cover the losses being incurred," Macquarie analyst Max Layton said.
"With this, the seaborne met coal market is being undersupplied week after week, with risks of amplified deficits from rampant Chinese steel output and strengthening La Nina conditions still present."
Energy Publishing's Queensland coking coal index has risen to $US365/tonne, from $US332 a week earlier.
"Industry consensus is the asking price of coking coal will effortlessly soar past $US400/tonne by this time next week," Energy Publishing said in its Coking Coal Index report, issued on Friday.
Although rain and flooding have eased, and deliveries from mines to ports are resuming, rail capacity is still reduced.
Exports have been supported by mines and ports eating into diminishing coal stockpiles, which had been stored in preparation for the wet season.
According to Macquarie, there has been a massive drawdown of almost all the available stockpiles in the Queensland coal chain.
"This cannot continue forever, and with the current rates of railing to the ports below volumes being exported, we would expect that export volumes for weeks three and four in January would actually be the lowest seen thus far," Mr Layton said.
"We expect to see the spot price for met coal continue to trend upwards in coming weeks."
Coking coal prices are tracked by a number of indexes, so there is some dispute about the record spot price, which was reached in the wake of 2008 Queensland rains.
According to Wood Mackenzie, prices peaked at between $US350 and $US375/tonne, and Goldman Sachs lists the high at $US400/tonne.
Macquarie estimates about 3.3 million tonnes of coking coal and 1 million tonnes of thermal coal have been lost from Queensland ports because of flooding, representing about $900 million of exports, based on contract coking coal prices and thermal coal prices of about $US120/tonne.
Macquarie estimates losses will be between 10 million and 11 million tonnes of coking coal production and between 5 million and 6 million tonnes of thermal coal, and this could mean about $US3.2 billion of exports lost or postponed this quarter.
On Thursday QR National opened the Blackwater coal railway, which goes to the Gladstone port, but it is only operating at part capacity.
All of QR's lines are operating, but miners that export out of Brisbane cannot get their coal to port.
January 24, 2011
COKING coal prices are expected to surge through a record $US400/tonne this week as exports from Queensland's drenched Bowen Basin slip because stockpiles at mines and ports are running out and full rail capacity is yet to return.
Prices for Queensland coking coal jumped $US33/tonne to $US383 last week, up 70 per cent on quarterly contract prices of $US225/tonne, according to the latest Platts assessments quoted by Macquarie.
"There is not enough slack in the metallurgical (coking) coal supply chain to cover the losses being incurred," Macquarie analyst Max Layton said.
"With this, the seaborne met coal market is being undersupplied week after week, with risks of amplified deficits from rampant Chinese steel output and strengthening La Nina conditions still present."
Energy Publishing's Queensland coking coal index has risen to $US365/tonne, from $US332 a week earlier.
"Industry consensus is the asking price of coking coal will effortlessly soar past $US400/tonne by this time next week," Energy Publishing said in its Coking Coal Index report, issued on Friday.
Although rain and flooding have eased, and deliveries from mines to ports are resuming, rail capacity is still reduced.
Exports have been supported by mines and ports eating into diminishing coal stockpiles, which had been stored in preparation for the wet season.
According to Macquarie, there has been a massive drawdown of almost all the available stockpiles in the Queensland coal chain.
"This cannot continue forever, and with the current rates of railing to the ports below volumes being exported, we would expect that export volumes for weeks three and four in January would actually be the lowest seen thus far," Mr Layton said.
"We expect to see the spot price for met coal continue to trend upwards in coming weeks."
Coking coal prices are tracked by a number of indexes, so there is some dispute about the record spot price, which was reached in the wake of 2008 Queensland rains.
According to Wood Mackenzie, prices peaked at between $US350 and $US375/tonne, and Goldman Sachs lists the high at $US400/tonne.
Macquarie estimates about 3.3 million tonnes of coking coal and 1 million tonnes of thermal coal have been lost from Queensland ports because of flooding, representing about $900 million of exports, based on contract coking coal prices and thermal coal prices of about $US120/tonne.
Macquarie estimates losses will be between 10 million and 11 million tonnes of coking coal production and between 5 million and 6 million tonnes of thermal coal, and this could mean about $US3.2 billion of exports lost or postponed this quarter.
On Thursday QR National opened the Blackwater coal railway, which goes to the Gladstone port, but it is only operating at part capacity.
All of QR's lines are operating, but miners that export out of Brisbane cannot get their coal to port.
Friday, January 14, 2011
North China ports see coal stocks drop to 14.61 Million tonnes coal
Source:en.sxcoal.com Jan 14, 2011
Coal stockpiles at four major loading ports in northern China further dropped in the week from Jan 7 to 13, falling for the fourth consecutive week, as power plants began to replenish inventory for the Spring Festival and less inflows from suppliers, according to Qinhuangdao Seaborne Coal Market..
As of Jan 13, a total of 14.61 million tonnes coal was stockpiled in ports of Qinhuangdao, SDIC Cafeidian, Jingtang and Tianjin, falling 824,000 tonnes or 5.34% from a week ago.
The stockpile was a decrease of 2.29 million tonnes from 16.9 million tonnes on Dec 16, 2010,
Qinhuagndao, China’s top loading port of the fuel, had 6.92 million tonnes coal in stock on Jan 13, reducing 10,000 tonnes or 0.14% from a week before, data showed.
Meanwhile, coal stocks at ports of SDIC Cafeidian, Jingtang and Tianjing, fell 12.79%, 6.66% and 10.48% from a week ago to 1.84 million, 2.94 million and 2.85 million tonnes, respectively, according to statistics.
Recently, sleets and freezing temperature in parts of southern China has boosted electricity demand and power plants are sending vessels to load coal at northern ports to build up stockpiles before the Spring Festival, which falls on Feb 3 this year.
Coal stockpiles at four major loading ports in northern China further dropped in the week from Jan 7 to 13, falling for the fourth consecutive week, as power plants began to replenish inventory for the Spring Festival and less inflows from suppliers, according to Qinhuangdao Seaborne Coal Market..
As of Jan 13, a total of 14.61 million tonnes coal was stockpiled in ports of Qinhuangdao, SDIC Cafeidian, Jingtang and Tianjin, falling 824,000 tonnes or 5.34% from a week ago.
The stockpile was a decrease of 2.29 million tonnes from 16.9 million tonnes on Dec 16, 2010,
Qinhuagndao, China’s top loading port of the fuel, had 6.92 million tonnes coal in stock on Jan 13, reducing 10,000 tonnes or 0.14% from a week before, data showed.
Meanwhile, coal stocks at ports of SDIC Cafeidian, Jingtang and Tianjing, fell 12.79%, 6.66% and 10.48% from a week ago to 1.84 million, 2.94 million and 2.85 million tonnes, respectively, according to statistics.
Recently, sleets and freezing temperature in parts of southern China has boosted electricity demand and power plants are sending vessels to load coal at northern ports to build up stockpiles before the Spring Festival, which falls on Feb 3 this year.
Wednesday, January 12, 2011
China coal benchmark price drops for a fourth week
China’s Qinhuangdao coal, a national benchmark for the power-station fuel, fell for a fourth week as supplies remained above normal and the government capped prices, sources reported.
Power-station coal with an energy value of 5,500 kilocalories per kilogram declined 0.6 percent from a week earlier to a range of 770 yuan to 780 yuan a tonne, data from China Coal Transport and Distribution Association showed on Jan 10.
Coal stockpiles at the port dropped 1 percent to 6.98 million tonnes last week, according to data on Jan 10. That is a relatively high level for supplies at this time of year, according to Wu Jie, an analyst at Orient Securities Ltd.
Coal stockpiles remain ample despite freezing weather, Wu said by phone from Shanghai today. The cap on the 2011 contract coal price also curbs the rise of spot prices.
China’s government in Dec ordered a freeze on 2011 contract prices for thermal coal supplies to power stations at 2010 levels, after the nation’s inflation rose to the highest in 28 months in November.
Power-station coal stockpiles stood at 57.07 million tonnes as of Dec. 20, equivalent to 15 days of use. In previous years, supplies at this time of year were equal to about ten days of demand, David Fang, a director at the coal association, said by phone from Beijing on Jan 10.
The decline in prices will be limited because rising global coal costs will support Chinese demand, according to Fang.
News via en.sxcoal.com, 11 Jan, 2011
Power-station coal with an energy value of 5,500 kilocalories per kilogram declined 0.6 percent from a week earlier to a range of 770 yuan to 780 yuan a tonne, data from China Coal Transport and Distribution Association showed on Jan 10.
Coal stockpiles at the port dropped 1 percent to 6.98 million tonnes last week, according to data on Jan 10. That is a relatively high level for supplies at this time of year, according to Wu Jie, an analyst at Orient Securities Ltd.
Coal stockpiles remain ample despite freezing weather, Wu said by phone from Shanghai today. The cap on the 2011 contract coal price also curbs the rise of spot prices.
China’s government in Dec ordered a freeze on 2011 contract prices for thermal coal supplies to power stations at 2010 levels, after the nation’s inflation rose to the highest in 28 months in November.
Power-station coal stockpiles stood at 57.07 million tonnes as of Dec. 20, equivalent to 15 days of use. In previous years, supplies at this time of year were equal to about ten days of demand, David Fang, a director at the coal association, said by phone from Beijing on Jan 10.
The decline in prices will be limited because rising global coal costs will support Chinese demand, according to Fang.
News via en.sxcoal.com, 11 Jan, 2011
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