Coal

Anglo American announced on Monday that it would sell its steelmaking mines in Australia for up to 3,88 billion pounds to UK-based Dhilmar. The move is part of Anglo American's strategy to exit the sector and reduce debt, as well as streamline assets, ahead of a planned merger between Teck Resources, Canada, and Anglo American. Anglo, listed in London, is selling the mines located in Queensland's Bowen Basin - the world's leading steel-making coal region - as part of its plan of divesting -or spinning off - non-core assets before completing the merger between Teck Resources and Anglo that will...

This week, the U.S. will likely move closer to a managed trade system for non-sensitive products. Each side may identify $30 billion in goods that they can reduce tariffs on and sell to one another without violating national security redlines. U.S. -Trade Representative Jamieson Greer first proposed the "Board of Trade", a "deliverable agreement" for this week’s high-stakes'summit' between U.S.-President Donald Trump and Chinese-President Xi Jinping. The plan's contours are still sketchy but there is a clear shift in the dialogue: Washington no longer demands that Beijing change its export-driven and state-directed economic model into one more similar to the...

U.S. legislators criticized Energy secretary Chris Wright for ordering that aging coal plant remain open in hearings held on Wednesday and Thursday, saying: 'the action will raise the already high power bills for steelmakers and consumers. Wright's department ordered in December that two Indiana coal plants, which had planned to?close permanently?, remain open. They said this would reduce the risk of power outages and provide affordable electricity. CenterPoint Energy's and Northern Indiana Public Service Company's coal plants were to be replaced with natural gas or other sources of power. NIPSCO estimates that it will cost them $100 million to maintain...

Coal has been given an unlikely reprieve by the combination of U.S. support and the Iran War. Don't call this a comeback. In the first weeks of Tehran’s war against the U.S., and Israel, the global seaborne thermal prices of coal rose by over 25%. Prices rose to the highest level since late-2024, adding new momentum to a 'unexpected' rebound. This price rise reflects short-term market conditions, not a structural improvement in the?coal economy, as is evident by the fact that prices are only 15% higher than pre-war levels. These recent steps come after coal achieved several positive milestones in...

The 'Coal Ministry' said that India had enough coal to meet what was expected to be a 'unprecedented spike in demand over the summer months. This comes after the gas supply disruptions caused bythe U.S./Israeli war against Iran. In a statement, the Ministry of Energy said that the total coal supply in the country was 210 million tons. This would be enough to?fuel consumption for 88 days. South Asia still depends on coal to generate three-fourths?of its electricity, despite a record-breaking increase in renewable energy production. India is expected to increase its coal power use in order to meet summer...

Italy's Energy Minister?said Wednesday that the country could reactivate some coal-fired?power stations if conflict in?the Middle East leads to an energy shortage. Gilberto Pichetto Fratin, Minister of Energy and Environment in Italy, said that "there are coal-powered stations in Italy that I would not like to reactivate. But they're there in reserve for our country." Israeli and U.S. Forces?struck Iranian targets on Tuesday. This prompted Iranian strikes against energy infrastructure in other Gulf States considered U.S. Allies in a area that accounts for just under a third global oil production. Iran also targeted tankers in the Strait of Hormuz. Through...

S&P Global announced on Monday that it could downgrade PacifiCorp to junk status, as liability from class actions litigation over a number of Oregon wildfires in 2020 increases. The warning was issued after an?Oregon juror on February 25, awarded $305 Million to 16 plaintiffs or $19 Million per plaintiff. They blamed PacifiCorp of failing to shut down power lines during the Labor Day Weekend windstorm. In earlier trials, plaintiffs had received an average of $5 million. S&P stated that it may reduce PacifiCorp’s "BBB minus" credit rating - the lowest investment grade - by at least two notches if future...

Anglo American reported a $3.7billion loss on Friday, after another writedown of its diamonds business. The miner is pushing ahead with plans to shed its non-core assets as well as complete its merger with?Teck Resources. Anglo has wrapped up an uneven reporting season for London listed mining groups. This highlights the divergent fortunes of the industry as Antofagasta benefitted from rising copper prices, while other diversified peers suffered due to weaker markets in iron ore and diamonds. The company recorded a $2.3bn pre-tax impairment on its De Beers division, reducing carrying value from over $4bn to $2.3bn. Analysts' estimates of...

?Anglo American reported a $3.7billion loss?on Friday, after taking a?writedown?on its diamonds' business. The miner is pushing ahead with its plans to shed its non-core assets as well as complete its merger with Teck Resources. Anglo has wrapped up the mixed reporting season of London-listed mining companies, highlighting the divergent fortunes in this industry. Antofagasta, for example, benefited from rising copper prices, while other diversified groups struggled to cope with weaker markets for iron ore and diamonds. The company declared a $0.23 dividend per share or about $200 million. It booked a $2.3billion pre-tax impairment related to its De Beers...

In his latest effort to boost the coal sector, President Donald Trump ordered on Wednesday that the Defense Department purchase electricity from coal-fired?power?plants. The Pentagon is required to sign purchase agreements with coal-fired power stations for an undisclosed amount. This executive order was issued by the White House. The Energy Department announced $175 million in upgrades for six coal plants located in Kentucky, North Carolina?Ohio?, Virginia?and West Virginia. Utilities have been phase out coal-fired generators, which are major contributors to carbon emissions linked to climate change. Trump, who called climate change a "hoax", has promised to speed up energy infrastructure...

?U.S. Bloomberg News, citing an official at the White House, reported that President Donald Trump will direct the Pentagon to use government funding and Pentagon contracts to sustain U.S. coal-fired power stations. The report could not be verified immediately. The White House didn't immediately respond to a request for comment made outside regular business hours, and the Pentagon deferred any?comments to the White House. Bloomberg reported that Trump will issue an executive order on Wednesday directing Defense Sec.?Pete Hegseth?to enter into?agreements for the military to purchase electricity from coal plants. The report said that Trump will also announce a plan...

Itochu, Japan's largest retailer, posted a record-breaking 4% increase in its nine-month net profits through December 31st, to 705.3 billion dollars. This was a result of strong consumer businesses, such as food, textiles and the convenience store chain. The trading house's food unit saw a 38% increase in profit to 82.5 billion Japanese yen, up from 60 billion last year. This was due to higher banana sales and production, as well as growth of the packaged foods division at Dole agriculture. Tsuyoshi Hachimura, Chief Financial Officer of the company, said at a press conference that "core profits in non-resources sectors...

Baoshan Iron & Steel Co, 'China's largest listed steelmaker said it would reevaluate a?investment into a steel joint venture? in Saudi Arabia. Baosteel and Saudi Aramco signed agreements to create a joint venture for the production of steel plates in Saudi Arabia in 2024. Baosteel will hold 50% of the joint venture, while Saudi Aramco (25%) and PIF (25%) each take 25%. At a recent earnings briefing, Baosteel chairman Zou Jixin said: "Given the current situation, we have become more cautious about our investment...we have already recalled 13 of the employees who were sent to Saudi Arabia earlier." Conflict began...

Bloomberg News reported that Anglo American had at least three potential buyers for its Australian steelmaking coal business, after the deal with Peabody Energy fell through. The report was based on people familiar with this matter. The report said that Stanmore Resources of Australia, Mitsubishi Corp. from Japan, and PT Buma Internasional Grup, based in Indonesia, were among the 'bidders' for the coal assets. Stanmore, Mitsubishi, and Buma International did not "immediately" respond to the request for comment. Bloomberg reports that a deal could be announced in the coming months. Peabody retracted its $3.78billion bid in August for Anglo American’s...

Chile will break from 'precedent' and host a panel on lithium at its annual global gathering of copper next week, in an effort to radically diversify its economy beyond the red metal which has been?powering it for decades. On Monday, the World Lithium Conference, organized by the International Lithium Association and the consultancy 'CRU', will launch what the copper industry calls CESCO Week. After months of stagnation, lithium prices have risen to levels not seen in two years as renewed interest in the metal is sparked by concerns about oil supplies in the Middle East. The lithium supply is tightening...

A government source revealed that India was looking for new markets to export steel in the Middle East and Asia in order to offset the carbon tax imposed by the European Union in January. India, which is the second largest producer of crude iron and steel in the world, exports roughly two thirds of its output to Europe. The EU's Carbon Border adjustment Mechanism has put pressure on the flow of steel into Europe. Last week, Sandeep Poundrik, the Steel Secretary of India said that the government will have to take steps to support exports affected by Europe's Carbon Tax....

China's steel output in November was the 'weakest month' in almost two years. This will result in the world's largest producer of metal posting its 'lowest annual production since 2018'. Imports of iron ore, the key raw material for steel, are expected to reach a new record in 2025. This will surpass the previous high of 1,24 billion metric tonnes, set in 2024. Iron ore stocks were restocked amid low seaborne prices, and there was optimism that Beijing’s stimulus measures would eventually increase steel demand. While the iron ore sector may be experiencing a positive sentiment, it is still facing...

India is considering the viability to import coking coal from Mongolia, despite the transport bottlenecks. New Delhi wants to diversify its supplies of this key ingredient in steelmaking. India, which is the second largest crude steel producer in the world, imports about 85% its coking coal, more than half of which comes from Australia. The source stated that the demand is expected to increase in the coming years. This will prompt the government and steelmakers alike to seek out new suppliers. Mongolia is a landlocked country with two export trade routes - one via Russia, and the other through China....

The price of iron ore futures fell on Friday but recorded their third consecutive weekly gain due to recent infrastructure demand. The day-traded contract for January iron ore on China's Dalian Commodity Exchange closed 0.19% lower, at 794 Yuan ($112.18) per metric ton. The contract rose 1.14% in the past week. As of 0717 GMT, the benchmark December iron ore traded on Singapore Exchange was down 0.89% at $105.75 per ton. The contract has gained 1.73% in the first week. Galaxy Futures, a Chinese broker, says that infrastructure demand has been increasing recently. Prices are expected to follow fundamentals on...

Customs data released on Friday showed that China's imports of coal in October were down 10% from the previous year, due to a holiday which reduced the number working days during the month. Imports will be supported in 2025 by the winter restocking of products during the last two months. Imports in October fell from 46.25 to 41.74 millions metric tons, a drop of almost ten percent. Imports in September reached 46 million metric tonnes, a record high for nine months. Feng Dongbin is vice-general manager of Fenwei Digital Information Technology. He said that imports decreased sequentially, and also from...

The prices of the main grades in seaborne thermal coal have been recovering modestly from their four-year lows. However, the gains come at the expense of volume as major importers reduce demand. According to analysts DBX Commodities, China, India and South Korea are on course for lower coal arrivals in September than October. The prices of the main Australian and Indonesian grades have been rising since early June after a downward trend that began in October 2023. The lower prices in July and August did increase import demand, but the higher prices are now causing buyers to pull back. DBX...

Open Interest (ROI), your indispensable source of global financial commentary, is Open Interest. The prices of seaborne thermal coal have been recovering modestly from their four-year lows in Asia, but this is at the cost of volume as major importers reduce demand. According to analysts DBX Commodities, China, India and South Korea are on course for lower coal arrivals in September than October. The prices of the main Australian and Indonesian grades have been rising since early June after a downward trend that began in October 2023. The lower prices in July and August did increase import demand, but the...

The Chinese-led expansion in Indonesia of aluminium production is expected to lead the global market in excess next year. This will result in lower prices for the metal used widely in the transportation industry. Three new smelters backed by China are close to completion, including Xinfa-Tsingshan Juwan in Weda Bay, Taijing at the Indonesia Morowali Industrial Park and the Adaro-Lygend Kaltara Project in North Kalimantan. Indonesia exported 325.293 metric tonnes of aluminium from January to August of this year. This is up 67% compared to the same period last year. Ross Strachan is an analyst with consultancy CRU. He said,...

Industry and government sources claim that India's private power producers are urging the government to allow the importation of equipment from China. They say the domestic resources available in the country are not enough and expensive, and the country is looking to increase its coal-based generation. India's Ministry of Power, as part of its "Make in India", mandated that homemade equipment be used in 2021. The initiative was designed to boost local manufacturing. This programme was also launched at a time of high diplomatic tensions between China and India. According to a letter that was reviewed by, the Association of...