Doc V, My coal trading pal just informed me over the phone that the largest Chinese coal companies are reviewing all export term contracts, and starting with the contracts that are priced the least, informing the opposite parties that until and unless they agree to pay a premium over term contract price, there will be no deliveries.
The buyers have many choices, none good:
(a) launch legal action and piss-off the suppliers, have own power stations go dark, or have own customers launch action against self; and
(b) swallow the premium payment demand, pay up, and acknowledge free-will agreement to contract change. Quickly try to pass on price increases to own customers!
Trying to find alternate suppliers on term contract is now maximally difficult.
Ugly, very ugly, and I am glad I am not a coal broker with my dangling bits in other's hands. Ouch.
But I am afraid that I am a user of coal, however indirectly, as we all are.
The shipping companies are also asking (telling) clients to pony up more moolah or go pound sand on the beach.
A time of 'taking' is upon us. The program is full-on, scam the rich, screw the poor, soak the stupid, damn the slow, ... I am so tempted to add to my coal position and yet, I must not, even if I have to chop off my hand, because I do not know who the mark is at the poker table ;0/
Chugs, Jay
References: Earlier developments - Message 19588827 <<December 12th, 2003 ... (b) China apparently has decided that it will phase out its coal export program and become a coal importing country>>
Message 19591980 <<December 12th, 2003 ...
<<coal>> ... I am told that one reason China decided to stop its coal export is because apparently the Japanese had been importing the coal, but unlike Philippines which uses it to generate power, Japan simply dumps it somewhere and hoard it for use later. I cannot be certain of the validity of this claim.
... But, if this is in fact how the planet is going to go, or how the story will go, with the amount of paper money being printed, surely the price of commodities will go higher, and then much higher? >>
Message 19803115 <<February 13th, 2004 ...
Another juicy bit. My coal trading friend tells me that China just implemented a 33% cutback of coal export quota, so as to retain coal in country.
The levers and buttons are being pulled and pushed.>> |
