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Wednesday, 02 May 12
CHINA BLACKOUTS HIGHLIGHT PRICING POLICY WEAKNESS - FITCH
 Fitch reported that, the likelihood of further electricity blackouts in China this summer underlines Fitch's view of the basic problem facing thermal electricity generators - that the tariff framework is not sustainable in the long term.
The problem centres on China's thermal or coal-fired plants, which in 2011 represented 72.5% of total electricity production of 4,692.8TWh, and are likely to remain the backbone of electricity generation for the foreseeable future. The problem is not with China's national electricity grid, which is well developed, but rather with the non-viability of the pricing mechanism for the coal-fired generators.
The Chinese thermal generators are unwilling to produce excess electricity in peak periods when their marginal generation costs are above the tariffs the government will allow them to charge the grid companies. Tariff adjustments have not been timely or sufficient despite the rising cost of coal, as the government has prioritised the management of inflation - thereby constraining profitability. The weak economics have also discouraged private-sector investment, while the state-linked thermal generators - Huaneng International ('BB+'/Stable), Datang International ('BB'/Stable), China Power International Development ('BB'/Stable), and Huadian International ('BB-'/Stable) - are now struggling with substantially weakened balance sheets.
Coal input prices for the thermal generators have increased dramatically over the past three years to end-2011, rising by an average of 16% pa. Meanwhile, the Chinese government has only allowed nationwide electricity tariffs to rise once in the last two years, by around 5% for non-residential customers in December 2011. Some tariff increases also occurred in selective provinces in April 2011, but the impact on generators' profitability was limited.
A 5% cap on annual coal price increases was introduced along with the December 2011 electricity tariff revision, but this applied only to contracted coal prices. These capped prices only represent around 30%-40% of the total needs of most thermal generators. Accordingly, large amounts of coal have to be bought on the spot market at substantially higher prices, making excess electricity production an uneconomic proposition. The substantial premium - typically 30% - on spot market prices against the capped contract coal price results in coal producers seeking ways to reduce their contracted sales in favour of spot sales, which is steadily eroding any benefit from the coal price caps.
A longer-term problem, and a potential cause of an eventual structural shortfall in generation capacity, is that limited profit - or losses - from thermal operations have since 2008 led to new capex in the industry being diverted away from thermal and into wind, hydro and vertical integration via coal mine acquisitions. A National Energy Administration (NEA) report dated 30 January 30 2012 confirmed that China's investment in thermal power assets fell again in 2011, by 26%, to CNY105.4bn. This trend, which cannot be reversed quickly due to the typical minimum two-year lead time to build new thermal capacity, is a serious concern given China's continued dependence on coal for its power generation.
The Chinese thermal generators are likely to face sustained weak operating cash flows and negative free cash generation under this heavily regulated environment, a situation which Fitch believes to be unsustainable in light of the continued growth in the Chinese economy. The agency believes that China is looking to introduce price reforms across the energy industries, but achieving a truly cost-reflective tariff regime is likely to take several more years, and will require a favourable inflationary climate. In the meantime, demand will continue to outstrip supply, even if - theoretically - the capacity exists within the generation system.
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Tuesday, 23 May 23
INDIA: COAL OUTPUT UP 8.9%, SUPPLY RISES 11.7% IN APRIL - FINANCIAL EXPRESS
India’s coal production jumped 8.85% to 73.14 million tonne (MT) in April 2023 and the total coal despatch during the month went up 11.66% to ...
Tuesday, 23 May 23
CHINA COAL OUTPUT UP 4.5 PCT IN APRIL - XINHUA
China’s raw coal output posted stable expansion in April, official data showed.
The country produced 380 million tonnes of raw ...
Saturday, 20 May 23
NON-OPEC OIL SUPPLY DEVELOPMENT - OPEC
In 2022, non-OPEC supply is estimated to have increased by 1.9 mb/d y-o-y. Out of this, US liquids production increased by 1.2 mb/d, mainly on the ...
Saturday, 20 May 23
GLOBAL COAL TRADE HAS REALLY PICKED UP PACE IN RECENT MONTHS, NOW FULLY BACK TO PRE-COVID LEVELS - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels. In Jan-Apr 2023, total global seaborne coa ...
Saturday, 20 May 23
MARKET INSIGHT - INTERMODAL
India is one of the world's largest coal producers and one of the world's largest importers of coal. The country uses coal mainly for power ...
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Showing 101 to 105 news of total 6871 |
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- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- Bhushan Steel Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- International Coal Ventures Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Mercator Lines Limited - India
- Sakthi Sugars Limited - India
- Ambuja Cements Ltd - India
- Sojitz Corporation - Japan
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Tata Chemicals Ltd - India
- Jindal Steel & Power Ltd - India
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mintek Dendrill Indonesia
- Semirara Mining Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Barasentosa Lestari - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Eastern Coal Council - USA
- The State Trading Corporation of India Ltd
- Gujarat Mineral Development Corp Ltd - India
- CIMB Investment Bank - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- Holcim Trading Pte Ltd - Singapore
- McConnell Dowell - Australia
- VISA Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- Ministry of Transport, Egypt
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Anglo American - United Kingdom
- Lanco Infratech Ltd - India
- GAC Shipping (India) Pvt Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Parliament of New Zealand
- Romanian Commodities Exchange
- Kideco Jaya Agung - Indonesia
- Tamil Nadu electricity Board
- Bhatia International Limited - India
- Vedanta Resources Plc - India
- Indian Oil Corporation Limited
- Antam Resourcindo - Indonesia
- Borneo Indobara - Indonesia
- Formosa Plastics Group - Taiwan
- Chettinad Cement Corporation Ltd - India
- Africa Commodities Group - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Simpson Spence & Young - Indonesia
- Sree Jayajothi Cements Limited - India
- Savvy Resources Ltd - HongKong
- The Treasury - Australian Government
- Ministry of Finance - Indonesia
- Manunggal Multi Energi - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Aditya Birla Group - India
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
- ICICI Bank Limited - India
- SN Aboitiz Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Siam City Cement PLC, Thailand
- Goldman Sachs - Singapore
- Commonwealth Bank - Australia
- Merrill Lynch Commodities Europe
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Standard Chartered Bank - UAE
- IEA Clean Coal Centre - UK
- Agrawal Coal Company - India
- Directorate Of Revenue Intelligence - India
- Trasteel International SA, Italy
- Videocon Industries ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Deloitte Consulting - India
- New Zealand Coal & Carbon
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Marubeni Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- Bukit Makmur.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- SMC Global Power, Philippines
- Sical Logistics Limited - India
- Renaissance Capital - South Africa
- Ceylon Electricity Board - Sri Lanka
- Timah Investasi Mineral - Indoneisa
- San Jose City I Power Corp, Philippines
- Essar Steel Hazira Ltd - India
- GMR Energy Limited - India
- Economic Council, Georgia
- Power Finance Corporation Ltd., India
- Kapuas Tunggal Persada - Indonesia
- LBH Netherlands Bv - Netherlands
- Planning Commission, India
- Toyota Tsusho Corporation, Japan
- Aboitiz Power Corporation - Philippines
- Meralco Power Generation, Philippines
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- Baramulti Group, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Star Paper Mills Limited - India
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Bulk Trading Sa - Switzerland
- PetroVietnam Power Coal Import and Supply Company
- Neyveli Lignite Corporation Ltd, - India
- Cement Manufacturers Association - India
- Oldendorff Carriers - Singapore
- CNBM International Corporation - China
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Sindya Power Generating Company Private Ltd
- Ind-Barath Power Infra Limited - India
- Indian Energy Exchange, India
- Riau Bara Harum - Indonesia
- Mjunction Services Limited - India
- Price Waterhouse Coopers - Russia
- Siam City Cement - Thailand
- Global Green Power PLC Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- ASAPP Information Group - India
- Bukit Baiduri Energy - Indonesia
- Interocean Group of Companies - India
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- Wilmar Investment Holdings
- Salva Resources Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- Energy Development Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Global Business Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Attock Cement Pakistan Limited
- AsiaOL BioFuels Corp., Philippines
- Jaiprakash Power Ventures ltd
- Therma Luzon, Inc, Philippines
- PowerSource Philippines DevCo
- Kartika Selabumi Mining - Indonesia
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Pendopo Energi Batubara - Indonesia
- Malabar Cements Ltd - India
- Altura Mining Limited, Indonesia
- Larsen & Toubro Limited - India
- Bangladesh Power Developement Board
- Sinarmas Energy and Mining - Indonesia
- Dalmia Cement Bharat India
- Grasim Industreis Ltd - India
- Global Coal Blending Company Limited - Australia
- Iligan Light & Power Inc, Philippines
- Wood Mackenzie - Singapore
- Rio Tinto Coal - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Bayan Resources Tbk. - Indonesia
- Georgia Ports Authority, United States
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Billiton Holdings Pty Ltd - Australia
- Heidelberg Cement - Germany
- MS Steel International - UAE
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Australian Coal Association
- Banpu Public Company Limited - Thailand
- Chamber of Mines of South Africa
- GVK Power & Infra Limited - India
- Straits Asia Resources Limited - Singapore
- TeaM Sual Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Kobexindo Tractors - Indoneisa
- Kumho Petrochemical, South Korea
- Central Java Power - Indonesia
- The University of Queensland
- Energy Link Ltd, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Rashtriya Ispat Nigam Limited - India
- PTC India Limited - India
- Indika Energy - Indonesia
- SMG Consultants - Indonesia
- Posco Energy - South Korea
- Madhucon Powers Ltd - India
- Bharathi Cement Corporation - India
- Kepco SPC Power Corporation, Philippines
- Thai Mozambique Logistica
- Carbofer General Trading SA - India
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