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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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Friday, 02 February 24
DRY BULK MARKET: THE DOWNWARD REVISION IN THE GROWTH OF CAPESIZE TONNE DAYS IN JANUARY WITH THE BCI DROPPING - MARIA BERTZELETOU
In the last week of January, the dry freight market sustained weakness in the Capesize segment, while the number of ballasters in the Southeast (SE ...
Friday, 02 February 24
COAL INDIA ACHIEVES NEARLY 80% OF ITS FY24 PRODUCTION TARGET IN TEN MONTHS - CNBCTV18
For the month of January, the company’s production grew by 9.1% from the same period last year to 78.4 Million Tonnes (MT), from 71.9 MT last ...
Thursday, 01 February 24
CHINA'S WIND, SOLAR CAPACITY TO OVERTAKE COAL IN 2024 - INDUSTRY BODY, REUTERS REPORTED
China’s installed wind and solar capacity is expected to overtake coal for the first time this year, according to industry forecasts.
&nb ...
Thursday, 01 February 24
ANTI-DEDUCTION CLAUSES: CAN A CHARTERER WITHHOLD HIRE WITHOUT AN OWNER'S CONSENT? - SKULD
KNOWLEDGE TO ELEVATE
Summary
In The Anna Dorothea, the Court found that where a charterparty provides that no deduction from hire may be m ...
Thursday, 01 February 24
INDIA REBUILDS COAL STOCKS TO ENSURE ELECTRIC RELIABILITY - REUTERS
India’s electricity supply is much more comfortable at the start of 2024 than in either 2023 or 2022 as coal production has ramped up and the ...
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Showing 41 to 45 news of total 6871 |
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- London Commodity Brokers - England
- Goldman Sachs - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- Thai Mozambique Logistica
- Orica Mining Services - Indonesia
- Riau Bara Harum - Indonesia
- Semirara Mining Corp, Philippines
- Gujarat Sidhee Cement - India
- Kartika Selabumi Mining - Indonesia
- Coal and Oil Company - UAE
- Asmin Koalindo Tuhup - Indonesia
- White Energy Company Limited
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- Bhoruka Overseas - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Ministry of Mines - Canada
- Metalloyd Limited - United Kingdom
- San Jose City I Power Corp, Philippines
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- Meenaskhi Energy Private Limited - India
- Economic Council, Georgia
- Therma Luzon, Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Barasentosa Lestari - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- South Luzon Thermal Energy Corporation
- Merrill Lynch Commodities Europe
- Larsen & Toubro Limited - India
- Chettinad Cement Corporation Ltd - India
- Posco Energy - South Korea
- TeaM Sual Corporation - Philippines
- Lanco Infratech Ltd - India
- CIMB Investment Bank - Malaysia
- Tamil Nadu electricity Board
- Renaissance Capital - South Africa
- Bhushan Steel Limited - India
- The University of Queensland
- Attock Cement Pakistan Limited
- Oldendorff Carriers - Singapore
- Trasteel International SA, Italy
- Directorate Of Revenue Intelligence - India
- Petron Corporation, Philippines
- Georgia Ports Authority, United States
- Borneo Indobara - Indonesia
- Price Waterhouse Coopers - Russia
- SN Aboitiz Power Inc, Philippines
- CNBM International Corporation - China
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Carbofer General Trading SA - India
- VISA Power Limited - India
- Kobexindo Tractors - Indoneisa
- ICICI Bank Limited - India
- LBH Netherlands Bv - Netherlands
- TNB Fuel Sdn Bhd - Malaysia
- Edison Trading Spa - Italy
- Neyveli Lignite Corporation Ltd, - India
- Kideco Jaya Agung - Indonesia
- Wilmar Investment Holdings
- Alfred C Toepfer International GmbH - Germany
- Savvy Resources Ltd - HongKong
- Jorong Barutama Greston.PT - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ceylon Electricity Board - Sri Lanka
- Iligan Light & Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Eastern Coal Council - USA
- Bulk Trading Sa - Switzerland
- Karbindo Abesyapradhi - Indoneisa
- Indika Energy - Indonesia
- Energy Link Ltd, New Zealand
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- SMC Global Power, Philippines
- Altura Mining Limited, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Petrochimia International Co. Ltd.- Taiwan
- Banpu Public Company Limited - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Mintek Dendrill Indonesia
- Indonesian Coal Mining Association
- Bukit Asam (Persero) Tbk - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Generating Authority of Thailand
- Anglo American - United Kingdom
- Kepco SPC Power Corporation, Philippines
- Mjunction Services Limited - India
- PowerSource Philippines DevCo
- Chamber of Mines of South Africa
- Global Coal Blending Company Limited - Australia
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Baramulti Group, Indonesia
- Globalindo Alam Lestari - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Bukit Baiduri Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Aditya Birla Group - India
- Makarim & Taira - Indonesia
- GMR Energy Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- Parliament of New Zealand
- Videocon Industries ltd - India
- Commonwealth Bank - Australia
- Cigading International Bulk Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Central Java Power - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Star Paper Mills Limited - India
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Rio Tinto Coal - Australia
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Vizag Seaport Private Limited - India
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Central Electricity Authority - India
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Medco Energi Mining Internasional
- Aboitiz Power Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Malabar Cements Ltd - India
- Standard Chartered Bank - UAE
- Sinarmas Energy and Mining - Indonesia
- Mercuria Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Latin American Coal - Colombia
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Madhucon Powers Ltd - India
- Mercator Lines Limited - India
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- The State Trading Corporation of India Ltd
- Toyota Tsusho Corporation, Japan
- Formosa Plastics Group - Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Indian Oil Corporation Limited
- India Bulls Power Limited - India
- Energy Development Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Sarangani Energy Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- PNOC Exploration Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Essar Steel Hazira Ltd - India
- Dalmia Cement Bharat India
- Orica Australia Pty. Ltd.
- Agrawal Coal Company - India
- McConnell Dowell - Australia
- Romanian Commodities Exchange
- PTC India Limited - India
- GAC Shipping (India) Pvt Ltd
- Vedanta Resources Plc - India
- Heidelberg Cement - Germany
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Sical Logistics Limited - India
- Salva Resources Pvt Ltd - India
- Tata Chemicals Ltd - India
- Australian Commodity Traders Exchange
- Coalindo Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Ministry of Finance - Indonesia
- Eastern Energy - Thailand
- Miang Besar Coal Terminal - Indonesia
- Xindia Steels Limited - India
- Sojitz Corporation - Japan
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Interocean Group of Companies - India
- Pendopo Energi Batubara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Singapore Mercantile Exchange
- SMG Consultants - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Marubeni Corporation - India
- Indian Energy Exchange, India
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Global Business Power Corporation, Philippines
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- Intertek Mineral Services - Indonesia
- Sakthi Sugars Limited - India
- The Treasury - Australian Government
- New Zealand Coal & Carbon
- Maheswari Brothers Coal Limited - India
- Australian Coal Association
- Wood Mackenzie - Singapore
- Thiess Contractors Indonesia
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