Monday, 20 Feb 2012
An Indian conglomerate is planning to build Queensland's biggest coal mine, west of Rockhampton in the state's central region, including a new town, runway, railway and port facilities.
The Adani Group has proposed a new open cut and underground mine, mostly on the Moray Downs cattle station, about 100 kilometres north of Emerald.
The cost of construction is expected to be at least AUD 6 billion and the mine would produce about 60 million tonnes per year, with a mine life of more than a century.
If the project goes ahead, Adani said it would be the largest investment by an Indian company in Australia.
The company is also planning to establish a new town to deal with the Carmichael mine's remote location.
It said it would also build an airstrip for fly in fly out workers, along with new railway and port facilities at either Abbot Point or Hay Point.
Adani said that exports would predominantly service the Indian domestic power market.
Queensland Mining Minister Stirling Hinchliffe said that he would prefer the company to use locally sourced labour. He said that "I have given a very clear message to the companies involved, including Mr Adani directly, that we have a very high expectation about the role that Queenslanders will play in these projects.”
Mr Hinchliffe also says there is not sufficient infrastructure in central Queensland's Galilee Basin to cope with the major new mining project.
(Sourced from www.abc.net.au)
Showing posts with label Indian coal buyers. Show all posts
Showing posts with label Indian coal buyers. Show all posts
Monday, February 20, 2012
Saturday, February 18, 2012
Global steam coal prices may zoom if CIL pushes imports
Saturday, 18 Feb 2012
ET reported that International coal prices are likely to move up further as the world's largest producer CIL needs to go on global shopping for the dry fuel to meet the increased demand of the power sector.
A Committee of Secretaries, set up by Prime Minister Manmohan Singh to sort out issues relating to the power sector, has asked CIL to sign Fuel Supply Agreements with power plants that have already been commissioned or would go on stream on or before March 31st 2015 for 20 years.
The analysts said that "It will be a Herculean task for Coal India Ltd to meet the additional obligations since its entire production now gets exhausted to feed the power sector. In the current situation, CIL's only way out is to go for procuring the raw material in countries like Indonesia, Mozambique, Australia and South Africa.”
Analyst said that "The international prices of coal are likely to go up as India's state run miner Coal India looks for procuring in the global market. The demand for coal in India is likely to go up manifold as projects go on stream.”
The international price of coal is now hovering a little over USD 100 per tonne.
(Sourced from ET)
ET reported that International coal prices are likely to move up further as the world's largest producer CIL needs to go on global shopping for the dry fuel to meet the increased demand of the power sector.
A Committee of Secretaries, set up by Prime Minister Manmohan Singh to sort out issues relating to the power sector, has asked CIL to sign Fuel Supply Agreements with power plants that have already been commissioned or would go on stream on or before March 31st 2015 for 20 years.
The analysts said that "It will be a Herculean task for Coal India Ltd to meet the additional obligations since its entire production now gets exhausted to feed the power sector. In the current situation, CIL's only way out is to go for procuring the raw material in countries like Indonesia, Mozambique, Australia and South Africa.”
Analyst said that "The international prices of coal are likely to go up as India's state run miner Coal India looks for procuring in the global market. The demand for coal in India is likely to go up manifold as projects go on stream.”
The international price of coal is now hovering a little over USD 100 per tonne.
(Sourced from ET)
Tuesday, January 10, 2012
Meghalaya to resumes import of coal from Bangladesh
Tuesday,10Jan, 2012
Import of coal into the Indian state of Meghalaya through Tamabil land customs station resumed on Thursday after its suspension for two weeks.
The decision was taken after a fruitful meeting held between local coal importers and Indian exporters. Import of coal stopped after sudden rise of its price by Indian exporters in the last week of December without prior notice. Indians raised the price of coal from 50 dollars to 60 dollars per tonne. Bangladeshi importers could not accept the sudden price hike by the Indians.
However, three trucks entered Tamabil border check post after the meeting held in the afternoon with the Indian team near zero line, Emdad Hossain president of Coal Importers Group Sylhet, told this correspondent.
President of the Foreign Trade Chamber of Meghalaya, Than Kongla, led the 15 member Indian team while Emdad led the 12 member team of Coal Importers Group, Sylhet.
About 100 trucks remained stranded on the Indian side for days together during the stalemate.
(sourced www.thedailystar.net)
Import of coal into the Indian state of Meghalaya through Tamabil land customs station resumed on Thursday after its suspension for two weeks.
The decision was taken after a fruitful meeting held between local coal importers and Indian exporters. Import of coal stopped after sudden rise of its price by Indian exporters in the last week of December without prior notice. Indians raised the price of coal from 50 dollars to 60 dollars per tonne. Bangladeshi importers could not accept the sudden price hike by the Indians.
However, three trucks entered Tamabil border check post after the meeting held in the afternoon with the Indian team near zero line, Emdad Hossain president of Coal Importers Group Sylhet, told this correspondent.
President of the Foreign Trade Chamber of Meghalaya, Than Kongla, led the 15 member Indian team while Emdad led the 12 member team of Coal Importers Group, Sylhet.
About 100 trucks remained stranded on the Indian side for days together during the stalemate.
(sourced www.thedailystar.net)
Thursday, January 5, 2012
South African Coal Exports to India Slump 24% in 11 Months, Mjunction Says
Thursday, 05 January 2012
India’s imports of coal (CCAIIQTL) from South Africa fell in the first 11 months of 2011, while China almost doubled purchases, according to Mjunction Services Ltd.India bought 14.39 million metric tons of the fuel from South Africa, down 24 percent from 18.96 million in the same period a year earlier, India Coal Market Watch, a unit of Mjunction, said in an e-mail dated yesterday. Purchases in November fell 21 percent from the previous year to 1.29 million tons.
South Africa’s shipments to China, the world’s biggest coal consumer, rose 88 percent to 12.26 million tons in the first 11 months of 2011, India Coal said in the note. November sales increased more than threefold to 2.84 million. India’s imports accounted for 25 percent of the 57.4 million tons from South Africa through November last year, according to Bloomberg calculations based on data from Mjunction and the Richards Bay Coal Terminal website. China accounted for 21 percent of the shipments.
Prices (CLSPSARB) at Richards Bay fell to $105.74 a ton as of Dec. 30 from $105.95 a ton a week earlier, according to data from Petersfield, U.K.-based researcher IHS McCloskey.
Kolkata, India-based Mjunction is a joint venture between Tata Steel Ltd. and Steel Authority of India Ltd.
Source: Bloomberg
India’s imports of coal (CCAIIQTL) from South Africa fell in the first 11 months of 2011, while China almost doubled purchases, according to Mjunction Services Ltd.India bought 14.39 million metric tons of the fuel from South Africa, down 24 percent from 18.96 million in the same period a year earlier, India Coal Market Watch, a unit of Mjunction, said in an e-mail dated yesterday. Purchases in November fell 21 percent from the previous year to 1.29 million tons.
South Africa’s shipments to China, the world’s biggest coal consumer, rose 88 percent to 12.26 million tons in the first 11 months of 2011, India Coal said in the note. November sales increased more than threefold to 2.84 million. India’s imports accounted for 25 percent of the 57.4 million tons from South Africa through November last year, according to Bloomberg calculations based on data from Mjunction and the Richards Bay Coal Terminal website. China accounted for 21 percent of the shipments.
Prices (CLSPSARB) at Richards Bay fell to $105.74 a ton as of Dec. 30 from $105.95 a ton a week earlier, according to data from Petersfield, U.K.-based researcher IHS McCloskey.
Kolkata, India-based Mjunction is a joint venture between Tata Steel Ltd. and Steel Authority of India Ltd.
Source: Bloomberg
Tuesday, January 3, 2012
PT Bumi is bullish on Indian steam coal demand
Tuesday, 03 Jan 2012
PT Bumi Resources, Indonesia’s largest coal miner by output, is targeting a 14% increase in coal production and sales volume this year on strong demand from India.
Mr Dileep Srivastava investor relations director at Bumi Resources said that the company aimed to have 75 million tonnes of coal production and sales this year, up from an estimated 66 million tonnes in 2011.
Mr Dileep said Bumi Resources expected the coal market to continue strengthening with increasing demand from India and Indonesia, followed by China and other markets.
He said “There will be growth in China still, but it is just nominal growth. The bulk of the growth will come from India because they have a lot of the start up power plants.”
He estimated that 15% of the company’s sales this year would come from India.
Mr Dileep did not elaborate on sales data from India for last year or 2010 but described the potential for the New Year as “significant.”
PT Bumi Resources has a long term contract to supply 10.8 million tonnes of coal annually to TATA Power for two power plants in India, and it is likely to start shipping this year.
(sourced TheJakartaglobe.com)
PT Bumi Resources, Indonesia’s largest coal miner by output, is targeting a 14% increase in coal production and sales volume this year on strong demand from India.
Mr Dileep Srivastava investor relations director at Bumi Resources said that the company aimed to have 75 million tonnes of coal production and sales this year, up from an estimated 66 million tonnes in 2011.
Mr Dileep said Bumi Resources expected the coal market to continue strengthening with increasing demand from India and Indonesia, followed by China and other markets.
He said “There will be growth in China still, but it is just nominal growth. The bulk of the growth will come from India because they have a lot of the start up power plants.”
He estimated that 15% of the company’s sales this year would come from India.
Mr Dileep did not elaborate on sales data from India for last year or 2010 but described the potential for the New Year as “significant.”
PT Bumi Resources has a long term contract to supply 10.8 million tonnes of coal annually to TATA Power for two power plants in India, and it is likely to start shipping this year.
(sourced TheJakartaglobe.com)
Monday, January 2, 2012
South Africa misses coal boom
Monday, 02 January 2012
South Africa's coal exports are surging into 2012 just when top spot buyers China and India are out of the market and supply bottlenecks elsewhere have eased, so it will have to fight for market share, eroding prices in a fundamentally weak landscape.
South Africa has the port capacity to export 81 million tonnes a year of coal from Richards Bay Coal Terminal, but in recent years the tonnage shipped has been far lower at about 64 million tonnes due to rail bottlenecks.
Exports in 2012 are forecast at around 70 million tonnes due to operator Transnet Freight Rail's (TFR's) improved railing rate, exporters and analysts said.
Even if TFR cannot sustain its target 1.6 million tonnes of coal a week moved to Richards Bay, after years of doubt and stinging criticism exporters expect rail rates to rise enough for an extra 7-10 million tonnes of exports.
"I think there's a lot of room for prices to come down - I wouldn't be surprised to see $85.00 a tonne FOB Richards Bay then rebounding back to $105 next year,” said Jaime Correal, analyst at Wood Mackenzie in Annapolis.
Exporters who have enjoyed fat margins on sales at over $100 against cash costs of about $60 are weighing up their likely profits on a higher volume sales at lower prices.
South Africa will export 21 million tonnes of coal in Q4, only slightly less than the 27 million shipped in the first half of the year, following a dramatic performance improvement by rail operator TFR.
Benchmark South African prices FOB Richards Bay have fallen from January’s highs of over $130.00 a tonne to about $100.00, on weakening fundamentals which will bite harder and push prices down in the coming year.
"Isn't it ironic that South Africa gets its act together on railings just as China withdraws from the market?," one major European trader said.
"It's the coal without any visible means of support because it isn't yet pricing in to any market in the world," he said.
This year began with a price spike and supply disruption due to floods in Australia's Queensland state and the Japanese tsunami. Indonesia and Colombia's output was hampered by severe rains and South Africa's exports seemed set for a shockingly low total of under 57 million tonnes.
"Last year almost every exporter had problems - but this year it's the reverse, nobody has a major problem exporting and South Africa is shipping at a totally unexpected rate," one major South African exporter said.
"It's bearish next year and the South African exporters are not in the best position to be trying to increase sales now," said Emmanuel Fages, an analyst with Societe Generale.
But some are unconvinced that TFR can keep up the pace.
"The performance of TFR has really improved lately but it's not clear if it will be sustainable or whether they'll start to have problems again," said Jaime Correal, coal analyst with Wood Mackenzie. "For this reason and because of strong domestic demand, we expect a slow growth in South African exports to 68 million tonnes maximum next year and slowly beyond that."
Retired drivers save the day
Among numerous TFR initiatives this year, the re-hiring of locomotive drivers had a dramatic impact on productivity, exporter, rail and transport sources said. "TFR re-employed 26 retired or semi-retired train drivers; their knowledge is very important, they know how to handle a train and can do their own minor repairs," one source said. These experienced drivers are able to drive new longer trains with many more jumbo wagons over some challenging parts of the line prone to derailments, and can save hours by avoiding the need to send out repair teams.
The move to a scheduled rail service, infra-red inspections of rail track (two potential derailments were averted that way) and raised security to prevent cable theft all played a part.
Rising quantities of American coal bought 1-2 years ago at discount prices are being shipped to Europe, increasing the pressure on South African sellers to shift sales to Asia.
India has been the biggest single buyer of South African coal since 2007, much of it now sold under term contracts but from next year India's biggest trade importers say they will buy spot only and will seek cheaper alternatives where possible.
"There's no doubt that some of the Indian buyers with index-linked term contracts have really suffered and will be more short-term buyers," another major exporter said.
India has been out of the spot market for several months and in the meantime, China absorbed the unwanted tonnes.
China is now the second-largest buyer of South African coal and absorbed about 9.5 million tonnes in January-October, roughly a fifth of the country's exports and a huge increase.
South Korea, which has reverted to buying standard grade coal, is also expected to buy more from South Africa.
"China and India, especially China, are such a huge price influence and the Chinese buyers like South African coal so as long as freight rates remain fairly low, it will still be competitive into China," the second exporter said.
Source: Reuters
South Africa's coal exports are surging into 2012 just when top spot buyers China and India are out of the market and supply bottlenecks elsewhere have eased, so it will have to fight for market share, eroding prices in a fundamentally weak landscape.
South Africa has the port capacity to export 81 million tonnes a year of coal from Richards Bay Coal Terminal, but in recent years the tonnage shipped has been far lower at about 64 million tonnes due to rail bottlenecks.
Exports in 2012 are forecast at around 70 million tonnes due to operator Transnet Freight Rail's (TFR's) improved railing rate, exporters and analysts said.
Even if TFR cannot sustain its target 1.6 million tonnes of coal a week moved to Richards Bay, after years of doubt and stinging criticism exporters expect rail rates to rise enough for an extra 7-10 million tonnes of exports.
"I think there's a lot of room for prices to come down - I wouldn't be surprised to see $85.00 a tonne FOB Richards Bay then rebounding back to $105 next year,” said Jaime Correal, analyst at Wood Mackenzie in Annapolis.
Exporters who have enjoyed fat margins on sales at over $100 against cash costs of about $60 are weighing up their likely profits on a higher volume sales at lower prices.
South Africa will export 21 million tonnes of coal in Q4, only slightly less than the 27 million shipped in the first half of the year, following a dramatic performance improvement by rail operator TFR.
Benchmark South African prices FOB Richards Bay have fallen from January’s highs of over $130.00 a tonne to about $100.00, on weakening fundamentals which will bite harder and push prices down in the coming year.
"Isn't it ironic that South Africa gets its act together on railings just as China withdraws from the market?," one major European trader said.
"It's the coal without any visible means of support because it isn't yet pricing in to any market in the world," he said.
This year began with a price spike and supply disruption due to floods in Australia's Queensland state and the Japanese tsunami. Indonesia and Colombia's output was hampered by severe rains and South Africa's exports seemed set for a shockingly low total of under 57 million tonnes.
"Last year almost every exporter had problems - but this year it's the reverse, nobody has a major problem exporting and South Africa is shipping at a totally unexpected rate," one major South African exporter said.
"It's bearish next year and the South African exporters are not in the best position to be trying to increase sales now," said Emmanuel Fages, an analyst with Societe Generale.
But some are unconvinced that TFR can keep up the pace.
"The performance of TFR has really improved lately but it's not clear if it will be sustainable or whether they'll start to have problems again," said Jaime Correal, coal analyst with Wood Mackenzie. "For this reason and because of strong domestic demand, we expect a slow growth in South African exports to 68 million tonnes maximum next year and slowly beyond that."
Retired drivers save the day
Among numerous TFR initiatives this year, the re-hiring of locomotive drivers had a dramatic impact on productivity, exporter, rail and transport sources said. "TFR re-employed 26 retired or semi-retired train drivers; their knowledge is very important, they know how to handle a train and can do their own minor repairs," one source said. These experienced drivers are able to drive new longer trains with many more jumbo wagons over some challenging parts of the line prone to derailments, and can save hours by avoiding the need to send out repair teams.
The move to a scheduled rail service, infra-red inspections of rail track (two potential derailments were averted that way) and raised security to prevent cable theft all played a part.
Rising quantities of American coal bought 1-2 years ago at discount prices are being shipped to Europe, increasing the pressure on South African sellers to shift sales to Asia.
India has been the biggest single buyer of South African coal since 2007, much of it now sold under term contracts but from next year India's biggest trade importers say they will buy spot only and will seek cheaper alternatives where possible.
"There's no doubt that some of the Indian buyers with index-linked term contracts have really suffered and will be more short-term buyers," another major exporter said.
India has been out of the spot market for several months and in the meantime, China absorbed the unwanted tonnes.
China is now the second-largest buyer of South African coal and absorbed about 9.5 million tonnes in January-October, roughly a fifth of the country's exports and a huge increase.
South Korea, which has reverted to buying standard grade coal, is also expected to buy more from South Africa.
"China and India, especially China, are such a huge price influence and the Chinese buyers like South African coal so as long as freight rates remain fairly low, it will still be competitive into China," the second exporter said.
Source: Reuters
Saturday, August 13, 2011
Coal India Q1 profit up 64 pct, faces competition for resources
Aug12, 2011 | By Reuters
MUMBAI (Reuters) - Coal India, the world's largest coal miner, on Friday said its fiscal first quarter profit surged 64 percent, beating street estimates, as stronger sales and a price increase effected in February boosted margins.
India holds 10 percent of the world's coal reserves but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.
Power-hungry India, where frequent black-outs are common, aims to halve its peak-hour power deficit of nearly 14 percent in two years.
Asia's third largest economy is likely to import 135 million tonnes of coal in the financial year that began April 1, spurred by demand that is forecast to grow 11 percent a year.
Earlier this week, state-run Coal India said it was in talks for one acquisition each in Indonesia, Australia and the United States, but was awaiting the government's nod to go ahead with the deals.
The company, which faces stiff competition for resources, was in advanced talks with Indonesia's Golden Energy Mines to buy up to 40 percent of its assets, sources had told Reuters in May.
But local private rival GMR Infrastructure said on Friday it had reached a deal to buy a 30-percent stake in Golden Energy for $450 million to $550 million in cash.
Coal India has also reportedly been in talks with U.S. miners Massey Energy and Peabody Energy for coal assets in the United States and Australia.
Kolkata-based Coal India, in which the Indian government sold a 10 percent stake last year for $3.4 billion in the country's largest IPO ever, has set aside $1.3 billion for acquisitions this fiscal year.
Q1 NET PROFIT SOARS
Coal India said net profit rose to 41.44 billion rupees in its fiscal first quarter , from 25.26 billion rupees a year ago. Net sales grew 27 percent to 144.99 billion rupees.
A Reuters poll of seven brokerages had forecast net profit of 36.1 billion rupees for the quarter on net sales of 142.6 billion rupees.
The company said sales for the April-June period rose 5.2 percent to 106.3 million tonnes, while coal production rose 1.2 percent to 96.3 million tonnes.
The profit was boosted by a 30-percent price increase that the company effected in February for some of its customers.
Coal India prices coal about two-thirds lower than global prices, in part because of comparatively low quality coal. Despite the price increase, itscoal prices remain 30 to 60 percent lower than international rates.
The company has said it will effect the next round of price increases after it works out the cost increase from the ongoing wage negotiations with its unions.
Shares in Coal India, the country's second-most valuable firm at about $54 billion, closed down 0.3 percent ahead of the results in a Mumbai market that fell 1.3 percent.
The stock, which was included in India's main stock index earlier this week, is the best performer among the components of the index. It has risen more than 22 percent so far this year, outperforming a nearly 18-percent decline in the main index.
MUMBAI (Reuters) - Coal India, the world's largest coal miner, on Friday said its fiscal first quarter profit surged 64 percent, beating street estimates, as stronger sales and a price increase effected in February boosted margins.
India holds 10 percent of the world's coal reserves but local supplies are falling short of demand as the country builds more power plants, and as domestic coal projects run into environmental and land acquisition delays.
Power-hungry India, where frequent black-outs are common, aims to halve its peak-hour power deficit of nearly 14 percent in two years.
Asia's third largest economy is likely to import 135 million tonnes of coal in the financial year that began April 1, spurred by demand that is forecast to grow 11 percent a year.
Earlier this week, state-run Coal India said it was in talks for one acquisition each in Indonesia, Australia and the United States, but was awaiting the government's nod to go ahead with the deals.
The company, which faces stiff competition for resources, was in advanced talks with Indonesia's Golden Energy Mines to buy up to 40 percent of its assets, sources had told Reuters in May.
But local private rival GMR Infrastructure said on Friday it had reached a deal to buy a 30-percent stake in Golden Energy for $450 million to $550 million in cash.
Coal India has also reportedly been in talks with U.S. miners Massey Energy and Peabody Energy for coal assets in the United States and Australia.
Kolkata-based Coal India, in which the Indian government sold a 10 percent stake last year for $3.4 billion in the country's largest IPO ever, has set aside $1.3 billion for acquisitions this fiscal year.
Q1 NET PROFIT SOARS
Coal India said net profit rose to 41.44 billion rupees in its fiscal first quarter , from 25.26 billion rupees a year ago. Net sales grew 27 percent to 144.99 billion rupees.
A Reuters poll of seven brokerages had forecast net profit of 36.1 billion rupees for the quarter on net sales of 142.6 billion rupees.
The company said sales for the April-June period rose 5.2 percent to 106.3 million tonnes, while coal production rose 1.2 percent to 96.3 million tonnes.
The profit was boosted by a 30-percent price increase that the company effected in February for some of its customers.
Coal India prices coal about two-thirds lower than global prices, in part because of comparatively low quality coal. Despite the price increase, itscoal prices remain 30 to 60 percent lower than international rates.
The company has said it will effect the next round of price increases after it works out the cost increase from the ongoing wage negotiations with its unions.
Shares in Coal India, the country's second-most valuable firm at about $54 billion, closed down 0.3 percent ahead of the results in a Mumbai market that fell 1.3 percent.
The stock, which was included in India's main stock index earlier this week, is the best performer among the components of the index. It has risen more than 22 percent so far this year, outperforming a nearly 18-percent decline in the main index.
Friday, July 8, 2011
Indonesia's Bayan signs 100 mln tonne coal deal with Indian firm
Fri Jul8, 2011
JAKARTA, July 8 (Reuters) - Indonesian coal miner Bayan Resources Tbk has signed a deal with India's Universal Crescent Power Private Ltd to supply 100 million tonnes of coal over 15 years from 2015, the firm's chief financial officer said on Friday.
"It's an index linked contract based on the Newcastle index (and) is fully compliant with the minimum pricing regulation," Alastair McLeod told Reuters. "It's not a fixed price contract, and so it will vary every month on delivery of the contract."
In late May, Bayan, Indonesia's eighth-largest coal producer, said it was aiming to more than double its annual output to as much as 25 million tonnes by 2013 to meet rising demand from consumers such as India.
The company produced 11.9 million tonnes of coal last year and expects output to rise to between 14.5 million and 15.5 million tonnes in 2011.
"It is a further expansion that will be required," McLeod said of the India agreement.
"We have already got some debt facilities in place although they're pretty much fully utilized," adding that the company is looking to raise additional debt in the latter part of this year or beginning of the next year to fund the expansion.
Bayan is 20 percent-owned by Korea Electric Power Corp and has open-pit mines located in East Kalimantan.
The firm exports most of its coal to countries and regions that include Europe, Taiwan, Malaysia, Japan and South Korea.
India, Asia's third-largest economy, is the biggest market for Bayan by volume, accounting for about 30 percent of all exports.
By 0353 GMT, shares of Bayan were little changed near a record high of 23,950 rupiah.
Thursday, March 3, 2011
South Africa exports above 1 million tonne coal to India
Thursday, 03 Mar 2011
Reuters reported that India bought 1.5 million tonnes of thermal coal from South Africa in January 34% of its total exports of 4.4 million tonnes but down from 2 million tonnes in December.
Exporters said that China accounted for 452,000 tonnes of South African coal in January, little changed from 485,000 tonnes shipped in December.
One exporter said that "The tonnages moving to India have remained substantial, but Indian buyers are less visible in the market because they're buying more term contract coal and less spot.”
India has over the past two years become the biggest single importer of South African coal and is expected to increase its share over the next several years as power generation grows.
The strength of Indian and to a lesser extent Chinese imports of South African coal has been the main factor supporting coal prices at over USD 100 a tonne during the past several months.
(sourced:Thomson Reuters)
Exporters said that China accounted for 452,000 tonnes of South African coal in January, little changed from 485,000 tonnes shipped in December.
One exporter said that "The tonnages moving to India have remained substantial, but Indian buyers are less visible in the market because they're buying more term contract coal and less spot.”
India has over the past two years become the biggest single importer of South African coal and is expected to increase its share over the next several years as power generation grows.
The strength of Indian and to a lesser extent Chinese imports of South African coal has been the main factor supporting coal prices at over USD 100 a tonne during the past several months.
Thursday, February 3, 2011
Queensland's floods slash India coal supplies
Ben Doherty, Delhi February 4, 2011
QUEENSLAND'S horrific run of natural disasters has sent Indian coal buyers - dependent particularly on the state's coking coal for steel production - scrambling to find new suppliers.
The price of coking coal in India has spiked because of the collapse in supply from Queensland mines, which were slowed and then shut by last month's floods, and now by cyclone Yasi.
The Queensland Resources Council estimated that 85 per cent of Queensland's coalmines were running at reduced capacity because of inundation following last month's floods.
Production was expected to fall by 25-50 per cent in the March quarter before cyclone Yasi hit.
India's unit of Standard & Poor's said this week the shortage of Australian supply would push up coking coal prices by 15-20 per cent to between $US260 and $US270 a tonne in April, when steel producers renegotiated their contracts with miners.
The spot price of coking coal has already shot up by $US40 to $US50, to $US280 to $US290 a tonne, according to a report by ratings firm Crisil.
Australia is the world's largest coal exporter, accounting for nearly two-thirds of the global coking coal trade. Ninety per cent of that comes from Queensland.
India is Queensland's third-largest coal customer, buying more than 21 million tonnes in 2008-09, more than China.
N. N. Gautam, from the Indian Energy Forum, said the Queensland floods had caused a worldwide shortage of coking coal.
"The difficulty in finding coal … we attribute to reduced production from Queensland, which is a major supplier to India and the rest of the world," Mr Gautam said. The Steel Authority of India is looking to the US to make up supply shortfalls, and has sought bids to supply 600,000 tonnes of coking coal.
The editor of Kolkata-based Core Sector Communique, Suvobrata Ganguly, said Indian steel manufacturers were being hurt by contracts with Australian miners that had been forced to declare force majeure.
"But force majeure is difficult for everybody,'' he said. ''The buyer suffers too because they do not get the coal they have a contract for, and they have to pay [a] higher price elsewhere."
But he said Queensland coal suppliers were regarded as among the most reliable in the world, and customers would return once production restarted.
"Australian coal companies are held in very high regard. They are very reliable, and these natural disasters, they are not the fault of the companies or the people.'' (sourced:www.smh.com.au)
QUEENSLAND'S horrific run of natural disasters has sent Indian coal buyers - dependent particularly on the state's coking coal for steel production - scrambling to find new suppliers.
The price of coking coal in India has spiked because of the collapse in supply from Queensland mines, which were slowed and then shut by last month's floods, and now by cyclone Yasi.
The Queensland Resources Council estimated that 85 per cent of Queensland's coalmines were running at reduced capacity because of inundation following last month's floods.
Production was expected to fall by 25-50 per cent in the March quarter before cyclone Yasi hit.
India's unit of Standard & Poor's said this week the shortage of Australian supply would push up coking coal prices by 15-20 per cent to between $US260 and $US270 a tonne in April, when steel producers renegotiated their contracts with miners.
The spot price of coking coal has already shot up by $US40 to $US50, to $US280 to $US290 a tonne, according to a report by ratings firm Crisil.
Australia is the world's largest coal exporter, accounting for nearly two-thirds of the global coking coal trade. Ninety per cent of that comes from Queensland.
India is Queensland's third-largest coal customer, buying more than 21 million tonnes in 2008-09, more than China.
N. N. Gautam, from the Indian Energy Forum, said the Queensland floods had caused a worldwide shortage of coking coal.
"The difficulty in finding coal … we attribute to reduced production from Queensland, which is a major supplier to India and the rest of the world," Mr Gautam said. The Steel Authority of India is looking to the US to make up supply shortfalls, and has sought bids to supply 600,000 tonnes of coking coal.
The editor of Kolkata-based Core Sector Communique, Suvobrata Ganguly, said Indian steel manufacturers were being hurt by contracts with Australian miners that had been forced to declare force majeure.
"But force majeure is difficult for everybody,'' he said. ''The buyer suffers too because they do not get the coal they have a contract for, and they have to pay [a] higher price elsewhere."
But he said Queensland coal suppliers were regarded as among the most reliable in the world, and customers would return once production restarted.
"Australian coal companies are held in very high regard. They are very reliable, and these natural disasters, they are not the fault of the companies or the people.'' (sourced:www.smh.com.au)
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