Sakari   

Straits Asia

this drop should be temporary only as coal demand is still there. In China, they foresee a shortage in the region...below is the report.

July 17 (Bloomberg) -- China, the world's largest coal producer, increased production of the fuel by 11 percent in the first six months to meet increased demand from power generators.

Coal production reached 1.24 billion metric tons, the China Coal Transportation and Distribution Association said in a statement in Beijing today. Sales of the fuel rose 10.7 percent to 1.2 billion tons during the period, said Wang Zhanjun, vice president of the association.

China is having a coal supply shortage caused by an insufficient transportation network and after the country closed small unsafe coal mines to raise efficiency. The country has shut 2.5 percent of its coal-fired power plants due to fuel shortages, the State Grid Corp of China, the nation's largest power distributor, said July 7.

``Coal market will remain in `tight balance' and regional shortages may worsen in the second half,'' Wang said at the 2008 Asia-Pacific Coal Market Summit in Beijing today. ``China faces pressure to ensure thermal coal supplies.''

Coal stockpiles fell 2.9 percent to 145 million tons at the end of June, according to Wang. The nation's coal consumption increased 6.8 percent to 1.12 billion tons in the first five months, with the average price of the fuel jumping 19 percent to 307.66 yuan ($45) a ton, Wang said.

 

July 17 (Bloomberg) -- China's stocks fell for a third day, led by raw-materials producers, on speculation a slowing economy will curb demand and as prices of metals fell.

China Shenhua Energy Co. led coal producers lower after the economy expanded at the slowest pace since 2005. Baoshan Iron & Steel Co., the country's largest steelmaker, and Jiangxi Copper Co. declined.

aleoleo      ( Date: 17-Jul-2008 11:28) Posted: What happen to this gem... morning 2.98 now 2.87.... anyone here any idea ??? coal price drop ???

 

What happen to this gem... morning 2.98 now 2.87.... anyone here any idea ??? coal price drop ???

 

ANALYSIS-Asia coal traders a scarce commodity as prices surge
Mon Jul 14, 2008
PERTH, July 14 (Reuters) - Coal may be the world's most abundant form of carbon energy, but those who can turn a profit trading it are in increasingly short supply as trading houses and investment banks jostle for a share of the expanding market...

For the first time in recent memory, say industry sources, coal traders have become hot commodities in themselves, rivalling keenly-sought oil or metals dealers in a scramble for experienced personnel able to manoeuver in a volatile, opaque and often illiquid market that is finally opening....

Thanks also to the freeing up of European power and gas markets and the advent of the carbon market, banks ranging from Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) and Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) to Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) have begun to trade physical and paper coal...

And trading firms that previously focused on oil or metals, including Sempra Energy (SRE.N: Quote, Profile, Research, Stock Buzz) and Swiss-based Vitol, have recently set up coal desks in Asia, which accounts for 60 percent of world seaborne steam coal trade, and which many expect will provide the bulk of future demand growth...

POACHING

In Singapore, a regional hub for commodities trading, Barclays Capital BAR.L has recently hired Chris Pardey, formerly a director of commodities trading at Merrill Lynch, to head its coal and agricultural business, industry sources said....

http://www.reuters.com/article/companyNews/idUKSYD32756720080714?symbol=GS.N&pageNumber=1&virtualBrandChannel=10171

 

Aileen likes Straits Asia.
Goldman Sachs upgraded Straits Asia to a buy & target price of $4.70, according to www.nextinsight.com.sg

 

 

Bloomberg Asia Pacific Coal Index

10/Jul/08  @ 1029.07 +0.857%
 9/Jul/08  @ 1020.33

The Bloomberg Asia Pacific Coal Index is a capitalization-weighted index of the leading coal stocks in the Asian Pacific Region. http://www.bloomberg.com/apps/cbuilder?ticker1=BPRCOAL:IND

 

July 11 (Bloomberg) -- Singapore's Straits Times Index added 25.26, or 0.9 percent, to close at 2,926.84. The benchmark gained 1.2 percent this week, trimming its 2008 loss to 16 percent....
 
GMG Global Ltd. (GGL SP), an owner of rubber plantations in West Africa, jumped 1.5 cents, or 6.7 percent, to 24 cents, its highest close since January 2000. GMG Global said Sinochem International (Overseas) Pte offered to buy 1 billion shares, or a 51 percent stake, in the company for 26 cents apiece...
 
Straits Asia Resources Ltd. (SAR SP), the supplier of coal to Japan, Taiwan and South Korea, jumped 23 cents, or 8.3 percent, to S$3, halting a three-day, 9.8 percent retreat. Declines in the past three days sent the stock's 14-day relative strength index, a moving average based on how rapidly shares rose or fell, to 28 yesterday, below the 30-level that indicates to some analysts that prices are poised for a rebound.

 

hahahahahahahaha..... :P

 

StraitsAsia starts to rebound....

 

r u vested? hee...

waiting to punt on ASCENDASREIT too....but no bullet left :P

aleoleo      ( Date: 10-Jul-2008 15:06) Posted: straitsasia, straits down for 6 days already. hopefully technical rebound will occur soon... yeah~~

 

straitsasia, straits down for 6 days already. hopefully technical rebound will occur soon... yeah~~

 

just vested again at 2.75x 10 !! wish me luck ! :D

 

haha...juz pure lucky and abit of patience as well...anyway...unloaded yester at 2.90x10 some kopi profit !

anyway DJ drop -236 overnite..so expect some volatility on this burger again..cheers !! :D

EastonBay      ( Date: 09-Jul-2008 17:57) Posted: u are really good at catching.. u got it at day low.. 2.83! good luck.. nickyng      ( Date: 09-Jul-2008 15:53) Posted: wow..this burger up and down like yo-yo fun siah....anyway newly vested at 2.83 x 10lots !! wish me luck!! :D

 

Bloomberg Asia Pacific Coal Index

9/Jul/08  @ 1028.34  +2.21%
8/Jul/08  @ 1006.07  +1.32%
7/Jul/08  @   992.95  +1.65%
4/Jul/08  @   976.81   -3.28%
3/Jul/08  @ 1010.04

The Bloomberg Asia Pacific Coal Index is a capitalization-weighted index of the leading coal stocks in the Asian Pacific Region. The index was developed with a base value of 100 as of December 31, 1998. The parent index is BWORLDPR.
http://www.bloomberg.com/apps/cbuilder?ticker1=BPRCOAL:IND

 

u are really good at catching.. u got it at day low.. 2.83! good luck..

nickyng      ( Date: 09-Jul-2008 15:53) Posted: wow..this burger up and down like yo-yo fun siah....anyway newly vested at 2.83 x 10lots !! wish me luck!! :D

 

wow..this burger up and down like yo-yo fun siah....anyway newly vested at 2.83 x 10lots !!

wish me luck!! :D

 

Singapore Hot Stocks-Straits Asia Resources up on broker upgrade
Mon Jul 7, 2008 3:30am EDT


SINGAPORE, July 7 (Reuters) - Straits Asia Resources (STRL.SI: Quote, Profile, Research, Stock Buzz) rose as much as 3.9 percent after Goldman Sachs upgraded the stock to "buy" from "neutral" with a target price of S$4.70.

Straits Asia Resources climbed to a high of S$3.08 with almost 5 million shares changing hands.

Goldman Sachs analyst Yoke Fong Chee said the stock in a recent selloff has fallen to an attractive level and offers high earnings growth potential.

"Straits Asia Resources's high growth profile and inexpensive valuations also underpin our turn to a more bullish view on the stock," Yoke said in a research note.

Goldman Sachs expects the company to get higher coal prices for 2009, and resource upgrades at the Jembayan coal mines, to drive share price outperformance.

 

Asia coal prices hover near $195 on Chinese supply worries PERTH, Australia -- Coal prices for power generators at Australia, a benchmark for Asia, hovered near record levels of about $195.00 a ton over the past week, supported by expectations that Chinese coal exports would fall in the third quarter. Several traders said coal prices were again propped up by expectations that China, the world's largest producer and consumer of coal, would either significantly cut back its second-half export quotas, or not issue any at all, in a bid to keep more supplies at home ahead of the Olympic Games in August. Thermal coal prices jumped $22.69 from a week earlier to $194.79 a ton, the globalCOAL's NEWC weekly index showed in the week ended July 5, based on prices at Australia's Newcastle port, the world's largest coal export terminal. "Prices are very strong because the market is generally expecting China to slash its second batch of export quotas," said a Singapore-based trader. "And if they do, the Japanese, South Koreans and Taiwanese utilities will have to find alternative supplies. But there aren't much extra supplies available anywhere." Lower exports from China have increased the pressure on other Asia-Pacific producers in recent years, with Indonesia receiving the greatest benefit as it achieves higher prices while increasing volumes. In contrast, coal exports from Australia, South Africa and Russia have remained constrained by infrastructure issues. Russian coal producers said on Monday that exports from the country were likely to fall more sharply than expected, as Russia's hydro power levels fall to their lowest in 16 years, forcing coal plans to run fully through summer. Traders said new tenders issued in the Philippines and Taiwan last week also buoyed sentiment in the spot market, which has seen little buying for the past month. Thermal coal prices have jumped over 200.0 percent from a year ago on powerful Asian demand and as supply outages in Australia, China and South Africa earlier this year exacerbated the market's tightness. Surging oil prices, which have jumped over 50.0 percent this year and struck a record high of near $145.00 a ton last week, were also supporting coal's rise, analysts said. Coal prices in Australia struck a record high of $201.00 a ton on July 2 but pulled back sharply in the following days, taking their lead from a 20-percent drop in European thermal coal prices, which traders and analysts said was due to a long-overdue market correction. Still, analysts said Asian coal prices were expected to remain firm with all indicators pointing to tightness in the market. "In such a tight climate of supply and demand, there seems to be limited downside risk to coal prices," National Australia Bank's commodities analyst Gerard Burg said in a report last week.

 

Australia's Newcastle Coal Price Climbs to Record (Update1)

By Jesse Riseborough

July 7 (Bloomberg) -- Thermal coal prices at Australia's Newcastle port, a benchmark for Asia, rose 13 percent to a record for a sixth week amid reduced supplies of the fuel.

The weekly index for power-station coal prices at the port in New South Wales state gained $22.69 to $194.79 a metric ton in the week ended July 4, according to the globalCOAL NEWC Index. The price has doubled since the start of the year.

Australian producers, the world's largest exporters of the fuel, are switching output to semi-soft coal from thermal coal to take advantage of higher prices, reducing supply of power station coal, Mark Pervan, a senior commodity strategist with Australia and New Zealand Banking Group Ltd. in Melbourne, said today by phone.

``That is tightening the thermal coal market; you are basically taking thermal coal supplies out of the market,'' Pervan said. ``That is an additional squeeze on the market so it is no surprise we are seeing these higher prices.''

The weekly globalCOAL index is up 46 percent since the start of May. The monthly index gained 18 percent to $163.68 a ton in June, from $138.31 the previous month.
http://www.bloomberg.com/apps/news?pid=20601081&sid=aRcgAZrZVGcI&refer=australia

 

SINGAPORE, Jul 04, 2008 (Thomson Financial via COMTEX) -- SSGDF | Quote | Chart | News | PowerRating -- Singapore-listed Straits Asia Resources, which has coal mines in Indonesia, rebounded on Friday after OCBC Investment Research said strong demand will continue to support strong coal prices in the long term despite the sudden and sharp decline on Wednesday.

At 10:08 a.m. (0208 GMT), Straits Asia had gained 4.0 percent to S$3.11, with 3.64 million shares traded.

OCBC has a "buy" rating on the company, with fair value set at S$4.80.

Panic-driven profit-taking dragged down the European coal swaps and physical markets on July 2 after the recent strong run-up in coal prices, which shot past $200 metric per ton, OCBC said. Straits Asia plunged 14.3 percent on Thursday on the news.

"The sudden drop in coal prices appeared to be a result of panic selling rather than from fundamentally-driven reasons," said Lee Wen Ching and Ritesh Menon in a note to clients.

Demand from Asia, led by China and India, remains strong.

"Looking at the longer-term global energy demands, world coal consumption is projected to grow 74 percent from 2004 to 2030," they said, citing data from the Energy Information Administration (EIA).

The EIA also projects coal to account for 28 percent of total world energy consumption by 2030 from 26 percent in 2004.

($1 = S$1.36)

pearl.bantillo@thomsonreuters.com

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