亚太地区-煤炭行业-新加坡煤炭月报：没有迹象显示中国放松进口限制

Editor:Vaughn LITel: (852) 2277 6628Email: foreignstock@phillip.com.hkEric Shu16781728 Page | 1 | PHILLIP SECURITIES RESEARCH (SINGAPORE) MCI (P) 062/10/2018 Ref. No.: SG2019_0071 Singapore Coal Monthly No sign of unwinding China’s import restriction SINGAPORE | MINING | SECTOR UPDATE China 144mn tonnes of new capacity added in 1Q19 National Development and Reform Commission and associated authorities approved the resumption of work for 29 mines with a total capacity of 177mn tonnes, and 144mn tonnes of which were new capacities in 1Q19. The mines are mainly located in North and Northwest China, producing thermal coal. Expecting 30% growth of domestic coal transport capacity by rail In Apr-19, China Railway Economic and Planning Research Institute announced that the coal transportation capacity by railway would increase 650mn tonnes to 2.8bn tonnes (75% of the national production) or have a 30% growth by 2020. Coal production will continue to be consolidated within Shanxi, Shannxi, and western part of Inner Mongolia. Indonesia Firmer approach to ensure domestic obligation is met According to the interview with the Indonesian Coal Mining Association’s executive director by S&P Global Platts, the government wants to closely control the production output for the first time. However, there is difficulty in implementing the policy due to the lack of coordination between the local governments. The DMO requirement for 2019 could be higher than 25% which was the quota for 2018. China boosted domestic coal supply, associating with import restriction The restriction on seaborne coal remains. Apart from Australian coal, the clearance for Indonesian coal at northeastern China ports was delayed in Apr-19. China has been reducing its reliance on coal imports which reached a 5-year peak of 281mn tonnes last year. Domestic coal demand is growing at a milder pace, in line with the overall economy in China. The tactical increase in supply and transportation capacity is to supplement the shortfall due to the reduction of coal import and narrow the price gap between land-borne and seaborne coal respectively. However, the strategic clampdown on coal production and consumption will carry on domestically. The mitigation of price headwinds throughout the Indonesian approach is limited Coal selling price is more critical for business operation and performance. The current unfavourable price hampers the ramp-up of production given the thinner margin that miners will now suffer. The DMO imposes sales quota and a price cap. So it has little help on reliving pressures from operational difficulties. 25 April 2019 Golden Energy & ResourcesBUY (Maintained)BLOOMBERG CODEGER SPCLOSING PRICE FORECAST DIVTARGET PRICETOTAL RETURNGeo Energy ResourcesACCUMULATE (Maintained)BLOOMBERG CODEGERL SPCLOSING PRICE SGD 0.177FORECAST DIVSGD 0.004TARGET PRICESGD 0.215TOTAL RETURNChen Guangzhi(+65 6212 1859)Research Analystchengz@phillip.com.sgSGD 0.215SGD 0.01