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Number of results: 22
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Abstract

The average grades of copper mines are dropped by extracting high grade copper ores. Based on the conducted studies in the mine field, the uncertainty of economic calculations and the insufficiency of initial information is observed. This matter has drawn considerations to processing methods which not only extracts low grade copper ores but also decreases adverse environmental impacts. In this research, an optimum cut-off grades modelis developed with the objective function of Net Present Value (NPV) maximization. The costs of the processing methods are also involved in the model. In consequence, an optimization algorithm was presented to calculate and evaluate both the maximum NPV and the optimum cut-off grades. Since the selling price of the final product has always been considered as one of the major risks in the economic calculations and designing of the mines, it was included in the modeling of the price prediction algorithm. The results of the algorithm performance demonstrated that the cost of the lost opportunity and the prediction of the selling price are regarded as two main factors directed into diminishing most of the cut-off grades in the last years of the mines’ production.
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Abstract

Coal production in 2018 increased by 3.3% and amounted to 7.81 million tons. Compared to 2010, it increased by 620 million tons. The structure of coal production in the world is very stable in the analyzed period of 2010–2018. Steam coal dominates in production with a share of 77%. Since 1990, the share of coal in the consumption of primary energy carriers has fallen by 3% in the global economy. In the EU, the share of coal in the consumption of primary energy carriers is more than twice lower than in the world, and in 2018 amounted to 13%. BP estimates the sufficiency of coal proven reserves based on 2018 data for the next 132 years. For oil and gas, they are estimated at 51 years. The decline in hard coal production in the European U nion can be dated almost continuously since 1990, which has decreased by 74%. In 2018, 74 million tons of coal were produced in the EU. In 2018, hard coal consumption in EU countries dropped to 226 million tons, i.e. by 20.6%. In 2018, global trade in steam coal amounted to 1.14 billion tons. The situation in China is crucial for the international coal market. The slight change in the import policy of this country significantly affects the situation in international trade in steam coal. In 2019, coal prices (at Newcastle, Richards Bay, ARA ports) dropped by an average of 23 U SD/ton. The average decreases for these three indices were 33%. The prices of steam coal in the forecasts presented in the paper are under pressure of the falling demand.
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Abstract

The purpose of the article was to characterize the international steam coal market based on the latest available data. The information goes back to the first half of 2018. The article focuses on the description of the three largest exporters and importers of steam coal. Representatives in these categories were selected using the latest global statistics on 2017. In 2017, global production of steam coal amounted to 5.68 billion tons and exceeded production in 2016 by 4%. For several years, invariably the world’s leading exporters of steam coal are: Indonesia, Australia and Russia. In total, these three countries in 2017 supplied 73% of steam coal to the international market. However, for the 46% of global steam coal imports (data for 2017), three Asian countries are responsible: China, India and Japan. For each of the six listed countries (i.e. for: three major global exporters and three major global importers), the paper presents volumes related to coal production, export or import. The directions of deliveries or major coal exporters to a given country were also included. At the end of the article, the price situation was presented, as it appeared in the first half of 2018 on the European and Asian markets.
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Abstract

Biomass is one of the most frequently used sources of renewable energy. For centuries, wood has been used by people to heat their homes, and nowadays it is also used to generate electricity. The article discusses legal issues related to biomass, classification of biomass for energy purposes, quality parameters of selected ecological fuels, quality requirements for biomass, as well as biomass trade in the world. The article compares the quality requirements for biomass purchased by individual companies from the power sector (mainly dimensions, calorific value, moisture content, ash content, sulfur and chlorine). An analysis of the price of wood pellets on international markets, represented by the biomass stock exchanges: RBCN, EEX and BALTPOOL was also performed. The market analysis clearly shows that the international market for industrial pellets is dominated by intercontinental trade, which mainly concerns exchanges between the United States of America as a producer and Europe as a consumer. The largest amount of biomass is imported by the United Kingdom, mainly for its Drax biomass power plant, and this biomass comes from the USA and Canada. In addition to Great Britain, significant importers of wood pellets are the Netherlands, Belgium and Denmark. Judging by the interest of Polish energy companies in the purchase of biomass, also in Poland, the development of the biomass market should be expected.
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Abstract

The development of electromobility is a challenge for the power system in both technical and economic-market terms. As of today, there are no analyses to determine the power necessary to supply the planned infrastructure and to estimate the incentives and economic benefits resulting from the modification of the settlement method. The document determining the legal regulations and the obligation to build vehicle charging stations for specific municipalities is the Act on Electromobility and Alternative Fuels. This act estimates that the development of electromobility, due to the specifics including not only individual vehicles, will take place in certain areas. The places which in the first stage will be dedicated to the potential implementation of the concept of electromobility will be municipalities covering large agglomerations. In addition, due to the local aspect, the development of electromobility may take place in the areas of energy clusters’ initiatives, which, using the policy of increasing energy awareness, are aimed at energy production from local renewable energy resources. The planned development of electromobility assumes a systematic increase in the number of electric cars caused by the introduction of support systems. The dynamization of this sector will cause an increase in the demand for electricity. Due to power system reasons, an important factor determining the level of energy consumption depending on the time of day may be an appropriate shape of the pricing for the charging service. Appropriate price list stimulation can affect the behavior of recipients, causing the charging of cars in the off-peak of electricity demand. The aim of the article is to characterize the scale of the phenomenon of electromobility in the context of the emergence of a charging points infrastructure along with the possibility of price-setting stimulation affecting the profile of energy demand. It is also important to consider the challenges and responsibilities of municipalities and energy clusters from the perspective of introducing electromobility.
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Abstract

The article presents an analysis of Russia’s participation in international steam coal trade, which has been its important participant for years. The research covered the years 2014–2018. The geographical location on two continents and the availability of coal deposits, favors its presence on both the Pacific and Atlantic markets. The article also discusses the main coal producers in Russia and the prices of Russian steam coal directed to the spot market. Due to the significant share of coal exports for the Russian economy, the focus was also on analyzing Russian seaports. In recent years, Asian exports have dominated in Russian steam coal exports. The share of export to this market in the years 2014–2018 was in the range of 49–57% (60–87 million tons). Currently, three countries play an important role among Asian countries: South Korea, China and J apan. They purchased a total of 38–52 million tons of Russian coal. Although in the years under analysis Russia exported 52–67 million tons of steam coal to the European market, the share of this market dropped from almost half to around 40%. T he slow departure from coal energy contributes to reducing the share of recipients from this direction. Among European countries, in 2014 the main direction of export was Great Britain with 19% (24 million tons) of total export share. In 2018, exports fell to 9 million tons (5%). Among European destinations for Russian coal, Poland’s share is growing in importance. In the years 2014–2018, steam coal exports to Poland varied in the range of 5.6–16.2 million tons. In the years 2014–2018 it changed in the range of 5.6–16.2 million tons. The dynamic growth achieved in the last three years is noteworthy. In relation to 2016, imports increased by 10.0 million tons and in 2018 amounted to as much as 16.1 million tons. The article also discusses the geographical structure of coal imports to Poland by railway border crossings and seaports.
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Abstract

The paper presents selected issues related to the development of international coal markets. World consumption of coal dropped for the second year in a row in 2016, primarily due to the lower demand from China and the US. The share of coal in global primary energy consumption decreased to 28%. World coal production accounted to 3.66 billion toe and it was lower by 6.2% when compared to the previous year. More than 60% of this decline took place in China. The decline in global production was more than four times higher than the decrease in consumption. The sufficiency of the world resources of coal are estimated at 153 years – that is three times more than the sufficiency of oil and gas resources. After several years of decline, coal prices increased by 77% in 2016. The current spot prices are at the level of $80/ton and are close to the 2014 prices. In the European market, after the first half of the year, coal prices reached the level of around 66% higher than in the same period of the last year. The average price in the first half amounted to PLN 12.6/GJ, which is close to the 2012 prices. The share of spot trade in the total purchase amount accounted to approx. 20%. Prices in futures contracts can be estimated on the basis of the Japan-Australia contracts prices and prices in supplies to power plants located in Germany. On average, the prices in supplies to these power plants were higher by approximately 9% in the years 2010 – 2016 and prices in Australia – Japan contracts were 12% higher than CIF ARA prices in 2017. Global energy coal trade reached about 1.012 billion tons in 2016. A decline by 4.8% is expected in 2019 primarily due to the expected reduction in demand in major importing countries in Asia.
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Abstract

The article presents the challenges faced by the hard coal mining sector in Poland. The biggest challenge results from a decrease in the demand for coal, which was triggered mainly by the climate policy, including the tightening of environmental standards and an increase in the efficiency of generating units. The fundamental model of the MRÓWKA domestic coal market has been described. The model allows for determining the marginal price of a given fuel for a given generating unit in the system and the optimal mix of fuels to meet the energy demand. The results of the model calculations for the baseline and alternative scenarios were presented. It has been shown that the optimal distribution of coal mining capacities promotes the import of the discussed fuel in the north-eastern part of the country and that the individual customer valuation leads to a decrease in the competitiveness of the units located in the central-western part of the country. The paper also discusses the potential impact of the domestic oversupply on the balance sheet and the price of coal. According to the obtained results and the basic laws of economics, an oversupply of coal leads to a decrease in prices. For the analyzed variants, the dependence of prices was estimated at PLN 0.0308 / GJ for every million tons of the oversupply. The fall in prices is largely due to the fuel supply to units located close to ports or railway border crossings. Based on the presented arguments it can be concluded that the maximization of financial result from the extraction of coal should be based on an analysis taking incremental changes in fuel prices into account.
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Abstract

The purpose of the article is to verify a hypothesis about the asymmetric pass-through of crude oil prices to the selling prices of refinery products (unleaded 95 petrol and diesel oil). The distribution chain is considered at three levels: the European wholesale market, the domestic wholesale market and the domestic retail market. The error correction model with threshold cointegration proved to be an appropriate tool for making an empirical analysis based on the Polish data. As found, price transmission asymmetry in the fuel market is significant and its scale varies depending on the level of distribution. The only exception is the wholesale price transmission to the domestic refinery price. All conclusions are supported by the cumulative response functions. The analysis sheds new light on the price-setting processes in an imperfectly competitive fuel market of a medium-sized, non-oil producing European country in transition.
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Abstract

Various approaches have been introduced over the years to evaluate information in the expected utility framework. This paper analyzes the relationship between the degree of risk aversion and the selling price of information in a lottery setting with two actions. We show that the initial decision on the lottery as well as the attitude of the decision maker towards risk as a function of the initial wealth level are critical to characterizing this relationship. When the initial decision is to reject, a non-decreasingly risk averse decision maker asks for a higher selling price as he gets less risk averse. Conversely, when the initial decision is to accept, non-increasingly risk averse decision makers ask a higher selling price as they get more risk averse if information is collected on bounded lotteries. We also show that the assumption of the lower bound for lotteries can be relaxed for the quadratic utility family.
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Abstract

Steel and cast-iron products, due to their low price and beneficial properties, are the most widely used among metals; their consumption has become an indicator of the economic development of countries. The characteristics of iron raw materials, in relation to current metallurgical requirements, are presented in the present this article. The globalization of the trade and development of steelmaking technologies have caused significant changes in the quality of raw materials in the last half-century forcing improvements in processing technologies. In many countries, standard concentrates (at least 60% Fe) are almost twice as rich as those processed in the mid-20th century. Methods of quality assessment have been improved and quality standards tightened. The quality requirements for the most important raw materials ‒ iron ores and concentrates, steel scrap, major alloy metals, coking coal, and coke, as well as gas and other energy media ‒ are reviewed in the present paper. Particular attention is paid to the quality testing methodology. The quality of many raw materials is evaluated multi-parametrically: both chemical and physical characteristics are important. Lower-quality parameters in raw materials equate to significantly lower prices obtained by suppliers in the market. The markets for these raw materials are diversified and governed by separate sets of newly introduced rules. Price benchmarks (e.g. for standard Australian metallurgical coal) or indices (for iron concentrates) apply. Some raw materials are quoted within the framework of the commodity market system (certain alloying components and steel scrap). The abandonment of the long-established system of multi-annual contracts has led to wide fluctuations in prices, which have reached a scale similar to that of other metals.
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Abstract

Over the past two years, coking coal prices have been the most volatile among major bulk commodities. On the supply side, the most important factor determining the movement of coal prices were weather problems affecting the exports of coal from Australia (Queensland), where the production of the best quality coking coals is concentrated. On the demand side, an important factor is the growing role of China on the market, which, being the world’s largest producer and consumer of metallurgical coal, has also become its largest importer. The dominant, about 75% share of China in the global spot market has resulted in their level of activity influencing the periodic price decreases or increases in international trade and prices based on CFR China (along with Australian FOB prices) have become important indicators to monitor market trends and determine levels of negotiated benchmarks. The exceptional volatility on the market led to a change in the quarterly price fixing mechanism for hard-load hard coal contractors in mid–2017 to apply a formula that assumes the valuation of their quarterly volumes based on the average of the basket of spot price indices. This reflects the broader trend of the evolving market, with growing spot market activity. The article describes the current situation on the international coking coal market and presents short-term forecasts for hard coking hard coal prices (PHCC LV), which are a reference point for fixing prices of other types of metallurgical coal (hard standard, semi-soft, PCI).
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Abstract

The paper presents selected issues related to the development of international coal markets. World consumption of coal dropped for the second year in a row in 2016, primarily due to lower demand from China and the U S. The share of coal in global primary energy consumption decreased to 28%. World coal production accounted to 3.66 billion toe and it was lower by 6.2% when compared to the previous year. More than 60% of this decline took place in China. The decline in global production was more than four times higher than the decrease in consumption. The sufficiency of world resources of coal are estimated at 153 years – that is three times more than the sufficiency of oil and gas resources. After several years of decline, coal prices increased by 77% in 2016. The current spot prices are at the level of $80/t and are close to the 2014 prices. In the European market, after the first half of the year, coal prices reached the level of around 66% higher than in the same period of the last year. The average price in the first half amounted to PLN 12.6/GJ, which is close to the 2012 prices. The share of spot trade in the total purchase amount accounted to approx. 20%. Prices in futures contracts can be estimated on the basis of the Japan-Australia contracts prices and prices in supplies to power plants located in Germany. On average, the prices in supplies to these power plants were higher by approximately 9% in the years 2010–2016 and prices in Australia – Japan contracts were 12% higher than CIF ARA prices in 2017. Global energy coal trade reached about 1.012 billion tonnes in 2016. In 2019, a decline by 4.8% is expected primarily due to the expected reduction in the demand in major importing countries in Asia.
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Abstract

Over the past decade, the growing demand for imported coal from consumers (mainly Asian) coincided with supply constraints on the part of major suppliers. The sequence of events is referred to as force majeure. There were many events in the exporting countries, mainly including the cyclone and floods in Australia (Queensland, the world’s largest hard coking coal mining region). Imbalance between supply and demand causes commodity prices to be subject to cyclical changes, but in recent years the frequency and dynamics of these changes in the international metallurgical market (hard coking coal, semi-soft coking coal, PCI coal) has been extremely high. China, the world’s largest producer and consumer of coking coal, played a leading role in these events. Political action by the Chinese authorities regarding their domestic mining and metallurgical industries and the coke-chemical industry has made the country dethrone Japan since 2013 and has become a global leader in metallurgical coal imports. The rise of China’s importance in coal trading has become an important benchmark for monitoring market trends and benchmarking benchmarks. The market has become more bipolar and CFR China’s prices (in addition to Australia’s FOB prices). The paper describes the path of pricing mechanism changes in international trade contracts for metallurgical coal, against the background of market conditions that generate these changes.
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Abstract

The development of air transport affects elements of the aviation fuel market. In recent years an increase in both the number of passengers and the number of passenger operations has been observed. This phenomenon also concerns passengers and the number of operations served by Polish airports which translates into more and more fuel consumption in Poland. The authors of the study tried to approximate the characteristics of aviation fuels used in various types of aircrafts. The most important of them, from the perspective of the Polish aviation sector, include Jet. This type of fuel plays a key role in civil aviation. In the article, the enterprises operating in the analyzed sector were also reviewed. The empirical part of the article is devoted, in turn, to the analysis of changes in air passenger transport in Poland and changes in Jet fuel prices on the Polish fuel markets. The conducted research shows that the dynamics of changes in the number of passengers, as well as the number of passenger operations at Polish airports were characterized by an upward trend, and the increase in the number of passengers was driven not only by a larger number of available flights, but also by such factors as: increasing the capacity of aircraft and increasing the fill rate for seats. The authors have also attempted to examine the strength of dependence between the number of passengers deciding to use Polish airports and Jet fuel prices, which in recent years have undergone significant fluctuations. For this purpose, the value of Pearson’s linear correlation coefficient was used and the analyzed period covered the years 2011–2017. The data on passenger traffic used in the study came mainly from periodic reports prepared by the Civil Aviation Office (ULC).
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Abstract

The abrupt depreciation of the zloty during the subprime crisis and fastrising prices are serious problems, because Poland, having to fulfil five Maastricht criteria, makes the dependence of her domestic inflation on price increases in the EU countries the central point of the discussion about the optimal monetary and fiscal policy rules for the next few years. The primary objective of the paper is to test out some hypotheses about the main sources of the volatility of the Polish zloty / euro exchange rate and inflation in Poland. Because several competing theoretical models describing inflationary processes are widely used, special attention is paid to their empirical verification. The working-hypotheses allowing for the country-specific features of the consumer and producer price inflation are formulated and verified in the paper.
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Abstract

The aim of the study is to discuss the relationship of the crude oil price, speculative activity and fundamental factors. An empirical study was conducted with a VEC model. Two cointegrating vectors were identified. The first vector represents the speculative activity. We argue that the number of short non-commercial positions increases with the crude oil stock and price, decreases with the higher number of long non-commercial positions. A positive trend of crude oil prices may be a signal for traders outside the industry to invest in the oil market, especially as access to information could be limited for them. The second vector represents the crude oil price under the fundamental approach. The results support the hypothesis that the crude oil price is dependent on futures trading. The higher is a number of commercial long positions, the greater is the pressure on crude oil price to increase.
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Abstract

In the over 150 years of hydrocarbon history, the year 2017 will be one of the many similar. However, it will be a breakthrough year for liquefied natural gas. In Asia, China grew to become the leader of import growth, becoming the second world importer, overtaking even South Korea and chasing Japan. The Panama Canal for LNG trade and the “Northern Passage” was opened, so that Russian LNG supplies appeared in Europe. The year 2017 was marked by a dramatic shortening of the length of long-term concluded contracts, their shorter tenure and reduction of volumes – that is, it was another period of market commoditization of this energy resource. The article describes the current state of LNG production and trade till 2018. It focuses on natural gas production in the United States, Qatar, Australia, Russia as countries that can produce and supply LNG to the European Union. The issue of prices and the contracts terms in 2017 was analyzed in detail. The authors stress that the market is currently characterized by an oversupply and will last at least until mid–2020. Novatek, Total – Yamal-LNG project leaders have put the condensing facility at 5.5 million tons into operation. The Christophe de Margerie oil tanker was the first commercial unit to cross the route to Norway and then further to the UK without icebreakers and set a new record on the North Sea Road. In 2017, the Russian company increased its share in the European gas market from 33.1 to 34.7%. In 2017, Russia and Norway exported record volumes of „tubular” – classic natural gas to Europe (and Turkey), 194 and 122 billion m3 respectively, which is 15 and 9 billion m3 more natural gas than in 2016. The thesis was put forward that Russia would not easily give up its sphere of influence and would do everything and use various mechanisms, not only on the market, that it would simply be more expensive and economically unprofitable than natural gas. It was also emphasized that the pressure of the technically possible and economically viable redirection to European terminals of methane carriers landed in the American LNG, results in Gazprom not having a choice but to adjust its prices. The Americans, but also any other supplier (Australia?) can simply do the same and this awareness alone is enough for Russian gas to be present in Europe at a good price.
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Abstract

With the upcoming implementation of the centralized capacity market in Poland, capacity auctions will be organized where domestic power companies will offer their available capacities. It is assumed that bidding will be auctioned according to the so called descending clock auction system with uniform-price (Pay-as-Clear), which will lead to the market equilibrium price. Some analysts, however, are of the view that it is more appropriate to organize capacity auctions in the Pay-as-Bid formula, as this system should lead to lower prices that those of Pay-as-Clear, hence lower costs of capacity purchase. However, this opinion does not confirm the practice – theoretical considerations do not take into account such important factors as the behavior of market players and the tendency of bidders to accept a higher risk or the lack of access to advanced analyses, and thus better information for all market participants. This paper presents a hypothetical calculation of the prices in the centralized capacity market using Monte Carlo simulations. The results of the study confirm that the price level for the Pay-as-Bid system, due to the asymmetry of information and the level of concentration of the power generation sector in Poland would lead to higher prices than for the Pay-as-Clear system on average by approximately 2.5%. The implementation of the PAB system would, therefore, be less efficient to electricity consumers.
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Abstract

This paper defines the concept of simple strategy and introduces three kinds of simple strategies: wealth-invariant, scale-invariant and "wealthier-accept more". For three commonly used utility function families: CARA, CRRA and DARA equivalent characterizations are obtained in terms of the corresponding simple strategy, in terms of the buying and selling price properties, and in terms of the utility function properties as expressed by Cauchy functional equations. Moreover, an extension of famous Pratt (1964) theorem is proved which involves buying price for a lottery as an alternative measure of comparative risk aversion. Additionally a number of propositions on both selling and buying price for a lottery and CRRA utility class are proved.
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Abstract

In empirical research on financial market microstructure and in testing some predictions from the market microstructure literature, the behavior of some characteristics of trading process can be very important and useful. Among all characteristics associated with tick-by-tick data, the trading time and the price seem the most important. The very first joint model for prices and durations, the so-called UHF-GARCH, has been introduced by Engle (2000). The main aim of this paper is to propose a simple, novel extension of Engle’s specification based on trade-to-trade data and to develop and apply the Bayesian approach to estimation of this model. The intraday dynamics of the return volatility is modelled by an EGARCH-type specification adapted to irregularly time-spaced data. In the analysis of price durations, the Box-Cox ACD model with the generalized gamma distribution for the error term is considered. To the best of our knowledge, the UHF-GARCH model with such a combination of the EGARCH and the Box-Cox ACD structures has not been studied in the literature so far. To estimate the model, the Bayesian approach is adopted. Finally, the methodology developed in the paper is employed to analyze transaction data from the Polish Stock Market.
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Abstract

Volatility is one of the most characteristic features in the all market types. In the raw material market, including the bituminous coal market, volatility is visible in the supply and demand variations, in consequence in the prices fluctuations. Market actors usually having opposite interests, for example buy low, sell high, are vitally interested in identifying the causes of these fluctuations. Some of the factors causing the market fluctuations are quite common, others are more complicated because of circumstances complexity. This article attempts to examine the relationships between bituminous coal fines prices and the economic situation. Given the complexity of the issue, the research area has been narrowed down – territorially to Poland and temporarily – to the present decade. The average prices of coal fines in Poland are presented by the Industrial Development Agency (Agencję Rozwoju Przemysłu SA) in the form of two indices: PSCMI 1 and PSCMI 2. Both indices are calculated based on the prices of pattern bituminous coal, produced by domestic manufacturers and sold on domestic markets, the energy and heat market respectively. Statistical methods, because of their quantitative nature, are important in identifying the correlations between the coal fines prices and economic conditions. Therefore, the article presents examples of relatively strong linear correlations between the PSCMI 1 and/or PSCMI 2 and some indicators of the economic situation.
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