Further Corrections of Coal
Tradingeconomics.com reported that thermal coal was traded at US$88.5 per ton on Wednesday (Nov 30), dropped significantly by more than 4% from Tuesday. That means the commodity has collapsed almost 23% from its recent peak.
Crude Oil Rally
Shares of ConocoPhillips jumped 11% Wednesday morning in New York as investors were upbeat with crude oil rally, which was boosted by optimism surrounding production cut by OPEC members. WTI crude oil and Brent crude oil jumped 8% on average to respond optimism from OPEC leaders about production cut.
People Behind Acquisition of Gozco’s Palmdale
Shares of PT Gozco Plantations Tbk (GZCO) gained 4% Tuesday (Nov 29) as investors responded positively the Company’s decision to divest 99.9% shares in PT Palmdale Agroasia Lestari Makmur to PT Bangka Bumi Lestari for nominal value of Rp300 billion. The divestment would set GZCO free from obligations related to Rp400 billion loan facilities provided by some banks to Palmdale.
Corrections of Coal
tradingeconomics.com quoted thermal coal price of US$92.5 per ton last Friday (Nov 25), collapsed almost 13% from earlier quotes, contributing to 12% weekly correction. This is the biggest daily correction so far since the commodity rallied from its low few months back to multi-year high. Why?
Insolvency of Kaltim Supacoal and the Dispute
On November 22, 2016 the team of curators for the insolvency of PT Kaltim Supacoal published an announcement stating that the process of insolvency of the Company is finished. But the announcement did not give further explanation. Earlier in May 2016, the Singapore International Commercial Court (SICC) handed down its first judgment on dispute between “BCBC Singapore Pte Ltd and anor v. PT Bayan Resources Tbk (BYAN) and anor”, the source of the problem in Kaltim Supacoal.
Commodities on Trump (3)
The benchmark February 2017 contracts of crude palm oil (CPO) advanced RM27 to RM3031 per ton Friday (Nov 25), the highest level not seen in the more than two years. WTI and Brent crude, meanwhile, lost 4.19% and 3.92% respectively. Gold inched up 0.18%, but lost 6.6% in the past month.
Insolvency of Binamitra Sumberarta
PT Binamitra Sumberarta, a subsidiary of PT Delta Ultima Coal (Delta Coal) faced their period of Suspension of Debts Payment (PKPU) since August 2016 due to lawsuit filed by two of its business partners, namely PT RPP Contractors Indonesia (RCI) and PT Uletbulu Mining. But after three months of negotiation, the creditors cannot find agreement with the Company on the best way to resolve the disputes. Therefore, the Company is finally declared bankrupt by the Panel of Judges since November 21, 2016.
Natural Rubber Rally
Natural rubber advanced 3.2% to 236.8 yen per Kg in Tokyo Thursday, Nov 24, the highest level since June 2015. This is one of the best performing commodities with 32% gain in the past few weeks, according to data from tradingeconomics.com. Further rally and implications?
Ambitious Targets for 2017, Revival of Darma Henwa?
Coal mining contractor Darma Henwa (DEWA) has set a more ambitious operational and financial targets for 2017. Sales revenue, for example, is projected to almost double to US$519 million, while gross profit would skyrocket to US$54 million from an estimated of US$15.9 million this year. Will these impress market participants?
Palm Oil & Plantation Shares
The benchmark February 2017 contracts of crude palm oil (CPO) ended higher by RM24 to RM2952 per ton on the Bursa Malaysia Derivatives Monday, while March 2017 contracts were settled at RM2933. The chance is big to see significant improvement in financials of plantation companies in the fourth quarter of 2015 and first half of 2017.