Coal Journal
Thermal coal advanced to US$104 per ton in international market this week, supported by supply-demand balance. Lower than expected output in India, China, and the United States of America plus rally in crude oil contributed to the 21.35% gain year-on-year. Indonesian miners, meanwhile, might seize the opportunity with higher output this year.
The Expired Oil & Gas Blocks
The government has actually granted eight oil and gas blocks, whose contracts expired this year, to state oil and gas company Pertamina. Interestingly, Pertamina returned two of the blocks to the government, which will then auction them to third party investors. Why?
Commodities & 2018 Budget
In contrast to projection from some economists, deficit of State Budget 2017 was only Rp346.7 trillion or 2.57% of GDP. It is also below the target set in the revised 2017 Budget of 2.92%. This was attributable to lower percentage of spending in one hand and higher percentage of State revenues.
Coal Journal
Relatively strong crude oil price, lackluster recovery of coal industry in the United States of America and continuing de-capacity in China have continued to support thermal coal. The commodity was traded at US$99.35 per ton yesterday to represent 13.35% gain year-on-year.
Oil and Gas Journal
President Joko ‘Jokowi’ Widodo has signed Government Regulation No. 53/2017 about tax for gross split scheme in oil and gas business. This regulation is expected to boost investment in the sector even though some shared doubts. Other than the new regulatory framework, rally of crude oil might make 2018 a more promising year for investments.
New Era at Offshore Mahakam Block
By January 1st, 2018, state-owned oil and gas company Pertamina will become new operator of the Offshore Mahakam, the largest gas producing block in the country. During 43 years of production controlled by Total (France) and Inpex (Japan), the block produced 1.5 billion barrels of oil and condensate plus 19 trillion cubic feet of natural gas.
Palm Oil Journal
The benchmark March 2018 contracts of crude palm oil (CPO) gained RM53 to RM2504 per ton on the Bursa Malaysia Derivatives Tuesday (Dec 26). April-September 2018 contracts were all settled above RM2500 per ton. Companies in this report: Sinarmas, Salim, First Resources, and MP Evans Plc.
Lower than Expected Nickel Supply from Indonesia?
Nickel returned to above US$12,000 per ton on London Metal Exchange (LME) last Friday (Dec 22), the highest level since mid November. The last quoted price reflected nearly 17% gain year-on-year. Some market participants might have digested data about China’s import of nickel ores and ferronickel from Indonesia.
More High Profile Names at Geo Energy Resources
Shares of SGX-listed company Geo Energy Resources Ltd, which operates coal mines in Indonesia, ended lower by nearly 2% Tuesday (Dec 26) despite announcement of higher coal offtake volume by Engelhart CTP (Singapore) Pte Ltd next year. According to the Company, trading firm Engelhart will absorb 7.5 million tons of thermal coal from PT Sungai Danau Jaya (SDJ), subsidiary of Geo Energy, next year.
Walk the Talk: Bakrie’s Dairi Lead-Zinc
We’ve been talking about PT Dairi Prima Mineral’s lead-zinc project for nearly one decade now. In the period, zinc price has collapsed from nearly US$4,000 per ton in 2007 to nearly US$1,000 per ton in 2009. Today, the commodity is traded above US$3,000 per ton. Lead, meanwhile, moved in somewhat similar direction.