Australia flood and its impact

Gaurav Kr Gupta
4109016016
 Introduction
• Australia flood effect the three sector of the
world
1. Coal
2. Steel
3. Power
.
 Content
• The flooding in Australia has severely hit mining
operations, particularly in Queensland, which accounts
for about 50 per cent of the world’s coking coal trade.
• The fall in BDI would have a marginally negative impact
on the profitability of Indian shipping players in the
fourth quarter of 2010-11 due to higher exposure to
the tanker segment.
• The Baltic Dry Index (BDI) tracks worldwide
international shipping prices of various dry bulk
cargoes.
.
 Analysis
• Researcher expects a temporary spike in coal prices
hitting the profitability of non- integrated steel
players by during the April-June 2011 quarter.
• Researcher believes that the impact on power and
shipping sectors will be marginal due to limited
dependence of domestic utilities on imported coal
and limited exposure of the Indian shipping players
to the dry bulk market, respectively.
 Conclusion
• The rise in spot prices (of coal) is likely to result in
higher contract prices of for the April-June 2011
quarter, which will affect the profitability of steel
players during the April-June 2011 quarter.
• It is expected that the cost of generation of these
power plants to increase only by paise per KWh.