Cement News tagged under: coal

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Energy complex continued lower with petcoke seeing new lows and higher discounts

23 January 2024, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The energy complex fell further in December but recovered by the end of 2023. In geopolitical terms, the Israel-Gaza conflict has seen increased risk of spreading and ship attacks in the Red Sea from Houthi terrorists in Yemen increased risk for oil and good shipping. A western UN-backed naval force has put an ultimatum and when attacks stop this would take some support away. The Ukraine-Russia war remains largely frozen, but hints of so...

Red Sea crisis on Pakistan’s cement industry

18 January 2024, Published under Cement News

Pakistan closely monitors the Red Sea crisis as it could disturb the movement of cement export cargoes to the USA and Europe as well as affect coal imports at Pakistani ports. It is also feared that any trade re-route would spark new inflation and supply chain disruption worldwide and in Pakistan. IMS Research, in a situation review report, warned that escalating tensions in the Middle East have begun to exert a notable influence on global trade, with Yemeni Houthi actions targeting commerc...

Afghan coal price surge impacts northern Pakistan cement production costs

08 January 2024, Published under Cement News

A spike in Afghan coal prices has affected the cost of cement production in northern Pakistan. JS Research reports that the northern-based cement companies, which operate 20 of the 26 production lines in Pakistan, are facing the challenge of high production costs due to a recent rise in imported coal prices. The cost trade-off between Afghan and international coal remains dynamic, leading to difficulties for the industry. The northern region players face costs of around PKR53,000/t  (US$188....

FOB discounts decrease but ARA discounts up

29 December 2023, Published under Cement News

Coal, along with oil fell to US$100 on 21 December 2023, and OPEC+ introduced new cuts to support oil at US$75-80. However, oil rose due to naval attacks in the Red Sea and trouble in the Suez Canal. Petcoke FOB contracts collapsed as freight rallied making CFR prices expensive.There was also a lack of interest from far destinations. The discount on FOB contracts increased but fell on ARA contracts. Petcoke discount falls (21 December 2023) Petcoke with 6.5 per cent S is exp...

Oil pressures energy complex lower despite OPEC+ cuts while petcoke collapses, offering new high discounts towards coal

22 December 2023, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The energy complex fell in November, with oil leading the way. The Israel-Gaza war continued but still without any contagion – and no war premium. Ukraine-Russia war is frozen literally, and some hints of possible talks are emerging to the upcoming Russian election. The US Federal Reserve and European Central Bank have both hinted in speeches that interest rates need to be high but not higher, which has given a relief rally in the financia...

Coal drops and petcoke-coal discounts fall

20 December 2023, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The price of coal declined after the Israel-Gaza war premium was taken out and oil also moved down. Petcoke saw downward pressure by coal with discounts falling. As a result, discounts on both FOB and ARA contracts are now in the lower part of the neutral range.  Petcoke with 6.5 per cent S is expected to continue in the US$80-95 range with resistance at US$95, US$105, US$115 and US$135. Support is at US$80, US$68 and US$55 with multi-year...

Fecto Cement Ltd is in discussion to install solar plant

28 November 2023, Published under Cement News

According to AHL Research, Fecto Cement Ltd (FECTC) management held a corporate briefing session on 24 November to discuss the FY22-23 and 1QFY23-24 financial results and future outlook. The management is in discussion of installing additional solar plants to become cost-efficient. In FY22-23 The company generated about 42 per cent of its power through captive plants, and the rest was taken from the Water & Power Development Authority. In 1QFY23-24 captive generation rose by 44 per cent.  ...

Energy complex lower on fading war premium while petcoke discounts fall as coal retraces

28 November 2023, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark The Israel-Gaza situation seems to be contained from spreading and the war premium has quickly faded as no disruptions in any markets have been seen. The focus has now shifted back to demand and supply. The two major central banks kept their rates unchanged in the October meetings,  keeping to the “higher for longer” rhetoric with inflation still too high for both the US and EU central banks. China’s growth, particularly in the property market...

1QFY23-24 is a good omen for Pakistan’s cement industry

03 November 2023, Published under Cement News

Pakistan’s cement industry saw healthy growth in profit after tax (PAT) between July and September 2023 (1QFY23-24) on the back of a 32 per cent YoY advancement in sales, according to Spectrum Securities Ltd, which evaluated the results of the top nine cement makers enrolled at the Pakistan Stock Exchange (PSX), representing 93 per cent of the sector’s market capitalisation. The top nine, which represent 93 per cent of the sector's market capitalisation, saw a 33.3 per cent grow...

Israel-Gaza war drives coal higher with petcoke reversing its drop

03 November 2023, Published under Cement News

By Frank O. Brannvoll, Brannvoll ApS, Denmark Coal was driven higher by the energy complex responding to the Israel-Gaza war and is now at the top of the US$100-140 range. Petcoke reversed its fall as its discount increased, creating a switch from coal. After reaching the major support at US$80, petcoke bounced back and will now follow coal, possibly at the top of the range. Petcoke with 6.5 per cent S is expected to continue in the US$80-95 range with resistance at US$95, US$105, US$...