Low calorific value coal demand increases, Argus study reveals

Feb 06, 2013, 23:17 ET from Argus Media

SINGAPORE, Feb. 6, 2013 /PRNewswire/ -- Demand for low calorific value (low CV) coal, which is of lower quality than coal with higher energy content, is increasing in the price-sensitive key markets of India and China, according to a research study published by global energy and commodity reporting agency Argus.

This exclusive study, "Low Calorific Value Thermal Coal Markets", provides a detailed assessment of the global low CV coal market with a specific focus on Asia-Pacific, where most internationally traded supply originates. The study discusses long-term drivers for global thermal coal trade, as well as logistics in Indonesia.

In China, logistical bottlenecks restrict the flow of coal from producing provinces in the north to the major consuming provinces in the south. Imports at southern ports are used to alleviate supply deficits during periods of high demand.

Coal consumers in India face operational challenges that threaten their profitability. Power generators, which are the main consumers, are faced with multiple problems including poor coal quality, low fixed electricity tariffs and supply shortages, and are looking to imports, particularly from Indonesian low CV producers, to address these issues.

"This study, which includes a 5-7 year outlook for pricing of low CV coal, based on our market intelligence, builds on the expertise in coal that Argus has developed over many years. The high-quality research and analysis conducted by Argus Consulting Services provides key insights into the trends that are already shaping the future of Asia's coal market," Argus Media chairman and chief executive Adrian Binks said.

For more information, visit www.argusmedia.com/lowcvcoal

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About Argus Media
Argus is an independent media organisation with nearly 500 full-time staff. It is headquartered in London and has offices in each of the world's principal energy centres. Its main activities comprise publishing market reports containing price assessments, market commentary and news, and business intelligence reports that analyse market and industry trends.

More than half of Argus' staff are commodity journalists who specialise in reporting news and price information relating to physical energy and related commodity markets. They operate according to a rigorous Editorial Code of Conduct and an Ethics Policy that align with best journalistic practice, including the avoidance of conflicts of interest.

Argus is a leading provider of data on prices and fundamentals, news, analysis, consultancy services and conferences for the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer, petrochemical and transportation industries. Data provided by Argus are widely used for indexation of physical trade. Companies, governments and international agencies also use Argus information for analysis and planning purposes.

Argus has 19 offices globally, including London, Houston, Washington, New York, Calgary, Rio de Janeiro, Singapore, Dubai, Beijing, Tokyo, Sydney, Moscow, Astana and other key centres of the energy industry. Argus was founded in 1970 and is a privately held UK-registered company.

SOURCE Argus Media