China coal energy Co., Ltd., the country’s second largest coal producer, suffered a net loss of 965 million yuan ($151 million) during the first half of the year, falling within the expected range of 0.8-1.2 billion yuan, said the company on August 21.

This was the first time China coal swung to the red in the first half since its listing in 2008, compared to a net profit of 686 million yuan in the same period last year, it said.

The company attributed the deficit mainly to falling prices caused by weak demand against an excess of supply amid slowing Chinese economy.

By end-June, China Coal offered its self-produced commercial coal at an average of 310 yuan/t, falling 72 yuan/t on year. Specifically, the average sales price of thermal coal slid 76 yuan/t from a year ago to 294 yuan/t, while that of coking coal dropped 96 yuan/t from the previous year to 482 yuan/t.

China Coal produced 46.27 million tonnes of coal over January-June, down 22.1% year on year. Total commercial coal sales slid 14.6% from the preceding year to 64.12 million tonens during the same period, 72% of which or 46.42 million tonnes were self-produced, a year-on-year drop of 16%.

On July 30, China Shenhua Energy Co., Ltd. said its net profit tumbled 45.6% on year to 11.73 billion yuan in the first half of the year.

http://en.sxcoal.com/0/130306/DataShow.html

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Financial Express reported that with Indonesian coal prices falling to USD 59 per tonne (free on board), there is a new trend in fuel consumption. A number of small traders have tied up with miners of Indonesia for high sea sales of coal to fulfil the demand coming up from unconventional corners - small sponge iron units, lime factories, smokeless fuel plants, coke oven units, tea gardens and even brick kilns.

Mr Pritam Dutta, a Kolkata-based trader, said this time there is an opportunity for coal traders to do business in larger volumes because the demands have been coming up from very unconventional corners.

Generally small consumers, who have no FSA or linkage with Coal India (CIL) and consumes below 4,200 tonne per annum, try to source coal from state trading corporations, who are allotted a CIL quota. CIL earmarks around 8 million tonne per annum for supplies to small consumers through nominated state agencies.

Besides consumers try to get CIL’s e-auction coal and also purchase coal from Nagaland and Meghalaya. Petty players sometimes resort to informal means to ensure supplies to their units.

While the informal means of getting coal, popularly known as DISCO coal, has been fully sealed, there has been no supplies from Meghalaya since rat hole mining has been absolutely banned. There are very little supplies from Nagaland, inadequate to meet the demand of small players.

Mr Dutta said that “In such a situation, the only domestic option left for small consumers were sourcing from state- nominated agencies and procurement through e-auction. But with prices of Indonesian coal falling and government imposing zero duty on coal, Indonesian coal has become a cheaper option for small consumers.”

He said that with big consumers already flushed with coal, miners in Indonesia are unable to strike any long-term contract. In such a scenario consignments are mainly coming for small traders, who instead of handling the bulk cargo at the ports, are making high sea purchases.

Mr Debasish Dutta, chairman of the Federation of Freight Forwarders Association, said high sea purchase is absolutely legitimate with traders lifting coal paying a 2% CENVAT. Buyers tied up with traders, in whose name the consignment comes, make the purchase at a spot price on the high seas. Buyers generally lift the coal in small barges or vessels and directly carry to its consuming point.

Mr Dutta said that “In the newly emerged scenario many traders both from India and Bangladesh are trying to make an entry into the new space tying up with the miners of Indonesia.”

http://steelguru.com/coal/low-cost-indonesian-coal-in-high-demand-in-india/432802#tag

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Domestic iron ore and steel futures fell sharply on Monday, hitting their downside limits as they were caught up in a broad-based selloff of risky assets that was sparked by fears that a cooling Chinese economy could spark a global slowdown.

The spot price of iron ore, the biggest commodity produced by global miners Vale, Rio Tinto and BHP Billiton, has rebounded by more than one-quarter from a decade low of $44.10 per ton reached in July.

But a slowing Chinese economy could put the focus back on a global glut that has pulled iron ore prices down for a third year running amid shrinking steel demand in China.

"In a broad way, it feels like we're back where we started in 2009. Things are shaky to the extent where all the progress we've made in the past years looks to have been erased," said Howie Lee, analyst at Phillip Futures in Singapore, on the rout in risky assets.

The latest data on China, released on Friday, showed its factory sector contracting this month at its fastest pace in more than six years.

That number weighed further on sentiment toward the Chinese economy, said Helen Lau, analyst at Argonaut Securities in Hong Kong.

http://en.chinamining.com.cn/News/2015-08-25/1440465334d73430.html

PTI reported that Goa's mineral resources companies like Fomento Resources, V M Salgaocar Brothers and Chowgule, etc have confirmed their intent and initiated preparatory acts to begin mining-related activities after the monsoon in September-October this year

Goa Mineral Ore Exporters Association said in a release that following Vedanta, three more mining companies have expressed their intent to resume iron ore extraction activity in the state

GMOEA release said “The state's mineral resources companies like Fomento Resources, V M Salgaocar Brothers and Chowgule, etc have confirmed their intent and initiated preparatory acts to begin mining-related activities after the monsoon in September-October this year.”

GMOEA secretary Glenn Kalavampara said “These activities, as in the past, would gain momentum post the Ganesh Chaturthi celebration.”

He added “Pursuant to the judgement of Supreme Court in April 2014 and High Court in August 2014, both the Central and state governments have acted and complied with the directions of both the courts.”

Vedanta's Sesa Goa has already announced resumption of iron ore extraction at their Codli lease, which was Asia's biggest mining site before mining was shut down in 2012.

Goa government has renewed the mining leases of 88 mines, all which are under scanner of Accountant General of Goa for failing to obtain clearance from the Indian Bureau of Mines.

http://steelguru.com/mining/goa-miners-to-start-iron-ore-extraction-in-goa-in-next-months-gmoea/432848#tag

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Baoshan Iron & Steel , China's biggest listed steel company, reported a modest increase in first-half profit on Monday, citing easing demand in its domestic market.

China's steel sector is grappling with chronic overcapacity, tougher environmental measures and an economic slowdown that is hitting demand for industrial metals.

"The steel sector has entered its usual winter mode as demand for downstream products sees slowing growth, competition intensifies and environmental requirements become more stringent," Baosteel said.

Net profit in the six months to June 30 rose 0.65 percent year on year to 3.17 billion yuan ($495.1 million), the company said in a filing on the Shanghai stock exchange.

Chinese crude steel output fell 4.6 percent to 65.84 million tonnes in July from a year ago, government data showed this month, as steel mills in the world's top producer faced tumbling prices and faltering demand.

With steel prices at 20-year lows, members of the China Iron & Steel Association (CISA) -- consisting of about 100 large and medium-sized mills -- suffered aggregate losses of 21.68 billion yuan from their core steel business in the first half of the year.

Steel prices have plummeted 25 percent since the start of the year, dampening iron ore prices .IO62-CNI=SI by 21 percent over the period.

Producers are likely to suffer further losses in the second half of 2015, squeezed by credit restrictions and pressures to repay existing debts while demand is expected to remain subdued.

China's Hangzhou Iron and Steel said last week that it suffered a net loss of 296.2 million yuan in the first half, compared with an 8.9 million yuan profit in the same period last year.

http://www.reuters.com/article/2015/08/24/baosteel-results-idUSL3N10T2ZA20150824

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