trending Market Intelligence /marketintelligence/en/news-insights/trending/wyEsgsD4B6bQ1Vxcu-se0Q2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

South Korean utility saves money on new Colombian coal purchasing strategy

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

South Korean utility saves money on new Colombian coal purchasing strategy

SouthKorea's Korean East-West PowerCo., or EWP, acquired two Capesize cargoes of 130,000 tonnes eachof Colombian coal with a minimum calorific value of 5,700 kcal/kg at $41 pertonnes f.o.b. basis 6,080 kcal/kg, and 410,000 tonnes of the same on a CFRbasis at $52 per tonne, basis 6,080 kcal/kg.

Thecompany averaged the prices paid for the Colombian coal on a CFR and f.o.b.basis and thus was able to save approximately $3.50 per tonne on its purchase priceof six Capesize cargoes of Colombian thermal coal, or 670,000 tonnes, nettingthe company savings of around $2.34 million, Platts reported April 12, citing amarket source familiar with the company's strategy.

Thesource said he believes that the purchasing strategy EWP utilized for theacquisition of Colombian thermal coal, which takes advantage of the spreadbetween Colombian and Newcastle thermal coal f.o.b. prices in the Atlantic andAsia-Pacific markets, could be utilized for a long time if the spread betweenthe prices goes on and freight rates remain depressed, the report noted.

Centralto EWP strategy is having access to its own dedicated ships through itslong-term chartered vessel contracts, or CVC, Platts wrote, noting that theselong-term freight contracts allow EWP to allocate two CVC Capesize ships tocarry the thermal coal from Colombia.

Theships' journey takes three times as long as those from Newcastle.

Platts and S&P Global Market Intelligence areowned by McGraw Hill Financial Inc.