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Indian cement firms seek to defer coal, coke cargoes

  • : Coal, Petroleum coke
  • 21/05/19

The second wave of Covid-19 and a near nationwide lockdown in India is prompting cement producers to seek deferments on coal and petroleum coke shipments.

Some companies have asked suppliers for deferments of up to two months as their fuel consumption has dropped significantly owing to a temporary destruction of cement demand. An executive at a major cement maker said fuel inventories at all of the firm's plants have increased owing to a sharp cut in output since early April. "We are not in a position to receive more shipments until the situation changes," he said.

India, the second-largest cement producer after China, is the biggest market for seaborne coke. The country's cement industry has also emerged as a key buyer of Australian NAR 5,500 kcal/kg coal after China stopped purchasing it. Indian buyers also booked many cargoes of NAR 6,900 kcal/kg US NAPP coal from mid-2020 after coke prices turned expensive.

But the record surge in Covid-19 infections and localised provincial restrictions have cut cement demand by more than 50pc, forcing companies to regulate production, put new purchases on hold and seek to defer booked cargoes.

April-May is typically marked by strong cement demand in the country before the arrival of monsoon rains in June. Companies had procured coal and coke in anticipation of operating at high rates during these two months. But most firms are now sitting on an unusually high fuel inventory at the plants and ports. An executive at another cement maker said his firm has temporarily stopped moving imported coal from portside to its plants given limited storage capacity. Companies have also slowed the lifting of domestic coal from state-controlled mining firm Coal India wherever possible.

Indian cement makers were also forced to seek deferments on the loading of cargoes of petroleum coke last year after a nationwide lockdown took effect in late March. But buyers are facing some difficulty in convincing the suppliers this year, market participants said.

The announcement of a nationwide lockdown by the federal government along with force majeure at ports made a strong case for deferment last year. Companies had to completely halt operations for nearly a month in April last year. But there is no nationwide lockdown this year, plants are allowed to operate, and only provincial restrictions have been announced. Moreover, ports have been functional, making the case for deferment weaker this time.

Indian cement output stood at 294.4mn t in the 2020-21 fiscal year ending 31 March, down by almost 12pc on the year and the lowest since 2016-17, when 280mn t was produced. The unusual double-digit decline was largely triggered by the nationwide lockdown early in the year. The lockdowns and restrictions dented economic activity and weighed on cement demand.


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25/06/23

India’s thermal coal imports edge higher in May

India’s thermal coal imports edge higher in May

Singapore, 23 June (Argus) — India's thermal coal imports increased on the year in May, reversing an eight-month decline, lifted by pre-monsoon stocking activity and an anticipated seasonal increase in utility coal burn. India imported 18.65mn t of thermal coal in May, up by nearly 12pc from a year earlier and over 19pc higher from 15.65mn t in April, according to data from shipbroker Interocean. Coal arrivals grew by double-digit percentages on the year across key origins, including Indonesia, South Africa and Russia. India's total imports over January-May stood at 72.6mn t, down by 4pc from 75.55mn t in the same period a year earlier, according to Interocean data. The surge in imports last month may also have been partly triggered by falling prices in key origins, including Indonesia. Indonesia's key GAR 4,200 kcal/kg coal prices slumped to a four-year low in May, averaging $46.10/t fob Kalimantan basis Supramaxes. Prices remain under pressure on ample supplies and weak demand from key buyer China, hitting a fresh multi-year low of $39.40/t fob Kalimantan on 20 June. Indian demand for imported coal has broadly been capped this year because of abundant domestic supplies and an easing coal-fired generation. Indian coal producers' stocks stood at nearly 123mn t as of 31 May, up by 29pc from 95mn t a year earlier. Meanwhile, domestic output continues to edge higher. The country's total coal output stood at 168mn t over April-May, the first two months of the April 2025 to March 2026 fiscal year, growing by 3.4pc on the year. India's coal-fired generation, which meets most of its power requirements, was at 108.82TWh in May, down from 119.54TWh a year earlier and 113.48TWh in April, Central Electricity Authority (CEA) data show. The decline was partly the result of higher hydro and nuclear power generation. The country's coal-fired generation has continues to ease on the year so far in June, with output of 67.2TWh over 1-19 June, down from 72.95TWh a year earlier. Combined coal inventories at Indian power plants stood at 60.46mn t as of 31 May, up from 47.9mn t a year earlier, according to CEA. Import mix Imports from Indonesia totalled 10.89mn t in May, up by almost 15pc from a year earlier and higher by over 25pc from April's 8.69mn t, Interocean data show. Indonesia remained the primary supplier of imported coal to India last month, accounting for over 58pc of total thermal coal imports. Imports from South Africa, a source preferred by coal-consuming industries like sponge iron, rose by over 71pc from a year earlier to 4.26mn t in May, and were also up from 3.2mn t in April. Thermal coal imports from the US stood at 1.89mn t, up marginally on the year but higher by over 37pc on the month. This high-calorific value coal is preferred by cement producers as a replacement to petroleum coke when coke prices are not competitive enough. Russia supplied 1.3mn t in May, up by 73pc on the year and higher by 36pc on the month. By Ajay Modi India thermal coal imports in May 2025 t Origin Quantity % ± m-o-m % ± y-o-y Indonesia 10,895,717 25.4 14.9 South Africa 4,263,725 33.1 71.4 US 1,887,696 37.4 0.2 Russia 1,309,999 36.2 72.9 Mozambique 76,671 na -87.3 Others 222,259 -69.7 -78.9 Total 18,656,067 19.2 11.7 Source: Interocean Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

NZ’s Genesis Energy to maintain coal generators to 2035


25/06/23
25/06/23

NZ’s Genesis Energy to maintain coal generators to 2035

Sydney, 23 June (Argus) — Four New Zealand utilities have signed a non-binding agreement to support utility Genesis Energy's coal and gas-fired Rankine generators at its 953MW Huntly power station through to 2035, underpinning New Zealand coal demand for a decade. The company announced the deal on 19 June. It did not reveal the specific support mechanisms in the deal, but likely involves the other utilities making annual payments in exchange for the right to buy electricity from the company's Huntly power station as needed. Genesis will use the support to maintain its Rankine units until 2035 and build a fuel reserve at Huntly. One of the generators was set to retire in 2026, and two others were previously set to shut early in the next decade. Maintenance will be required on the unit set to retire in 2026. Genesis expects to finalise an agreement with the other utilities by the start of 2026, with the aim to have all Rankine units on line by mid-2026 in time for New Zealand's winter period. Genesis' Rankine units at its Huntly power station play a supporting role in New Zealand's power system, firing up when renewable generation from hydroelectric, geothermal and wind sources falls. The company is working on transitioning its Rankine units to biomass generators, but this is dependent on economic viability of black wood pellet prices . Indonesian sub-bituminous coal, which Genesis uses to power Huntly, is currently much cheaper than pellets. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cop 28 outcome must be implemented in full: Cop 30 head


25/06/20
25/06/20

Cop 28 outcome must be implemented in full: Cop 30 head

London, 20 June (Argus) — The incoming UN Cop 30 summit president Andre Correa do Lago has set out his objectives for the conference in November, placing as a key priority the Cop 28 outcome of trebling renewables capacity and transitioning away from fossil fuels. Correa do Lago today said his plan is to drive "collective action" to tackle climate change, placing a strong emphasis on the global stocktake, the first of which was concluded at Cop 28 in 2023 . That outcome saw almost 200 countries commit to "transition away" from fossil fuels, as well as treble renewables capacity by 2030. The global stocktake, a five-yearly process, sets out progress made towards Paris climate agreement goals. Today's "Action Agenda must drive momentum towards the full implementation of the GST [global stocktake]", Correa do Lago said. The incoming Cop president is focusing on implementing agreements made at previous Cops, and ensuring that countries and all other stakeholders — such as sub-nationals and the private sector — work together to put the decisions into action. Correa do Lago's letter today repeated language from the Cop 28 outcome, and noted his other main themes for Cop 30, which will take place in Belem, in Brazil's Para state, on 10-21 November. As well as shifting energy, industry and transport from fossil fuel-powered to lower- or zero-carbon alternatives, he listed forests, oceans and biodiversity and agriculture and food as key topics. Further topics involved building resilience for cities, infrastructure and water and human and social development. A final priority was enablers and accelerators across the board, including for finance and technology. Correa do Lago said in May that Cop 30 should be a "pivot point" to action on climate change, and "a new era of putting into practice" what has been agreed at previous Cop summits. He has noted a difficult geopolitical situation , which could make talks more challenging. Brazil's Cop 30 presidency is also focused on climate finance at UN climate talks, currently underway in Bonn, Germany. These 'halfway point' discussions serve to cover substantial technical groundwork ahead of political talks at Cop summits each November. Brazil yesterday at Bonn presented a draft of a roadmap to scale up climate finance — from all sources — to $1.3 trillion/year by 2035. The roadmap will not be officially negotiated, although it was a key outcome from Cop 29 in 2024 and is likely to be finalised just ahead of Cop 30 this year. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Pertamina buys into Philippine renewables firm


25/06/20
25/06/20

Pertamina buys into Philippine renewables firm

Singapore, 20 June (Argus) — Indonesian state-owned oil and gas producer Pertamina has bought a 20pc stake in Philippine firm Citicore Renewable Energy (CREC) as it looks to expend its presence in the renewables sector. The Indonesian firm's renewable energy (RE) subsidiary, Pertamina NRE, paid $120mn for the stake in a deal signed on 19 June. This is Pertamina's first renewable energy investment in the Philippines. CREC is one of the Philippines' leading renewable energy producers, generating about 287MW peak (MWp) of solar power across the country. The company has 25.7MW of hydropower and 362 MW of wind power projects under development. CREC plans to jointly explore renewable energy investments in Indonesia with Pertamina NRE. The partnership "is a way to elevate our capability in RE development, as well as a big step in accelerating our clean energy goals," said Pertamina NRE chief executive John Anis. The deal comes after the World Bank approved a $2.1bn blended finance package earlier this week to accelerate Indonesia's clean energy investments. The partnership will help strengthen energy co-operation between the two countries, Philippine energy department assistant secretary Mylee Capongcol said The Philippines and Indonesia signed an initial agreement for energy co-operation in 2024, highlighting their joint commitment to the energy transition. "Both Indonesia and the Philippines share common energy concerns, being dependent on coal-fired power plants and seeking an orderly transition to cleaner technologies," Capongcol said. By Angie Liew Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian Bowen Coking Coal meets FY25 guidance early


25/06/20
25/06/20

Australian Bowen Coking Coal meets FY25 guidance early

Sydney, 20 June (Argus) — Australian coal producer Bowen Coking Coal (BCC) met its production and sales targets for the July 2024-June 2025 financial year by the end of May, the company said 20 June. The company had sold 1.7mn t of coal which came in the middle of its full year guidance of 1.6mn t–1.9mn t. It is on track to hit the upper end of its sales guidance by the end of the current financial year on 30 June. BCC also produced 2.7mn t of run-of-mine (ROM) coal over the same period, hitting the lower end of its full year guidance. It expects to reach the upper end of its guidance by late June. BCC produces both coking and thermal coal. Coking coal accounted for 55pc of the company's total sales over the first nine months of the financial year. It did not give the year-to-date breakdown of thermal and coking coal sales. The company's unit costs for the year are on track to meet the lower end of its guidance, at A$151/t ($98/t). It left its unit cost guidance for 2024-25 financial year unchanged today at A$145/t–A$161/t. BCC's modest unit cost guidance and strong sales performance comes as it faces significant cashflow challenges. It is looking for capital and may need to pause or limit mining operations at the Burton mine complex if it is unable to secure funds. Many producers operating in Australia's Bowen Basin have faced major coal export challenges this year, in contrast to BCC's success. Two coking coal mines in the region — UK-South African producer Anglo American's Moranbah North and global miner Glencore's Oaky Creek — have been non-operational for most of the last two months, over safety and water leak issues. Australian rail operator Aurizon also reported a 4.6mn t year-on-year decline in haulage volumes in the Bowen Basin over January-April 2025 , which pushed down its total haulages by 6.2pc on the year. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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