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Thursday, 14 October 21
SPIKING COAL PRICES: DON’T BLAME THE ENERGY TRANSITION - IEEFA
 Volatility highlights urgency for renewables-based energy solutions
“Energy crisis.” The phrase evokes nearly-forgotten images of gasoline queues in the 1970s, but increasingly describes the spike in global fossil fuel prices. A handful of commenters eagerly lay the blame on renewable energy, which they claim has distracted the world’s attention from investments in oil, gas, and coal production that could have calmed markets.
But a sober analysis suggests that today’s energy price crunch has nothing to do with renewables. After all, price spikes aren’t unique to energy. Computer chips, lumber, copper, and iron ore are among the many commodities and products that have seen global price spikes and shortages this year. As the COVID-19 pandemic raged and then eased—alternately slamming the brakes and flooring the accelerator of the global economy—volatility became the rule rather than the exception.
A close look at the surge in global coal prices is instructive. Prices for some low-grade thermal coals have quadrupled on international markets since last year’s lows. COVID-induced volatility bears much of the blame. But price spike also has its roots in the world’s largest coal market, China, which produces (and consumes) half the world’s coal and meets 60 percent of its energy needs from the mineral.
Over the past year, China has experienced domestic coal shortfalls and shrinking stockpiles that forced the country to boost its imports. Given the country’s outsized appetite for coal, even a modest boost in imports quickly sent seaborne coal prices skyrocketing. The recipe for China’s coal shortages had at least five key ingredients, none related to the country’s renewables policies:
A mine safety crackdown. The Chinese coal mining sector has been a risky business. The state-run Xinhua News Agency reported that 225 coal miners died in China during 2020 in 122 accidents. But in the wake of a cluster of fatalities, federal authorities launched a major safety inspection effort in November 2020. The heightened scrutiny was blamed for a slowdown in production that began in April, a month after China boosted penalties for mine accidents. The prospect of jail time made mining executives reluctant to boost output even as supplies tightened.
Curbs on overproduction. China’s coal mining sector had struggled over much of the past decade with overcapacity that flooded markets with cheap coal—making it hard for many firms to find profits. Last November, just as China’s government was cracking down on coal mine safety, it also stepped up inspections for quota violations—once again making it risky for mining companies to boost supplies.
An anti-corruption campaign in Inner Mongolia. One of China’s most sparsely populated provinces, Inner Mongolia produces roughly one-quarter of the nation’s coal. President Xi Jinping announced in March that the government would investigate coal industry corruption in the region in a campaign that would “never end.” (The campaign focused, in part, on companies producing more coal than their quotas.) Top officials in the regional government have been sent to jail for more than a decade, with one given a suspended death sentence. In early 2021, the government was investigating almost 700 corruption cases involving about 1,000 people. The campaign, which was expanded across the country, also encouraged coal mining firms to curb their production to avoid becoming entangled in an investigation.
A halt to Australian coal imports. Tensions between Australia and its largest trading partner heated up last year, largely due to China’s territorial claims in the Pacific Ocean and the Australian government’s call for a “weapons inspector”-type investigation of the origins of the COVID-19 virus. China responded by blocking Australian coal imports in November 2020. The squabble led Beijing to seek out other markets for coal imports from Indonesia, Russia, the United States and South Africa. The shift contributed to a tripling in the price of lower-grade Indonesia coal over the summer.
Weather: Too cold, too hot, and too wet. An unusually cold 2020-21 winter in North Asia prompted blackouts in some regions. At least nine grid systems in northern provinces recorded record demand in early January. Summer heat waves continued to pressure the coal supply. Now winter approaches, and major power plants reported having about a 10-day stockpile of coal, roughly half of last year’s total. The country, desperate to boost coal consumption, faces a new weather-related obstacle: Record-breaking floods have shut down 60 mines in Shanxi province, a region that produces 30 percent of China’s coal.
These factors, together with COVID, helped precipitate a domestic coal crunch in China that quickly spread around the planet. Those who would blame the growth of renewables for China’s coal shortages are grasping at straws. If anything, ramping up investments in renewables would ease the country’s reliance on volatile, unpredictable fossil fuel supplies.
As for China, so for the world. Until the planet completes its transition to a renewable energy-based economy, supply and demand shocks—such as the ones currently traveling around the globe—will be a fact of life.
By Clark Williams-Derry
Energy Policy Analyst
IEEFA
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Thursday, 11 November 21
ASIA COAL POWER PIPELINE TO SHRINK BY TWO THIRDS AFTER CHINA FINANCE CUT - REUTERS
Asia’s pipeline of proposed coal-fired power plants is expected to shrink from 65 gigawatts to 22 gigawatts following China’s pledge to ...
Tuesday, 09 November 21
ASIA-PACIFIC IS HOME TO SOME OF THE WORLD'S LARGEST CARBON-EMITTERS - 2 CHARTS SHOW ITS RELIANCE ON COAL - CNBC
Asia-Pacific is home to some of the world’s largest carbon emitters — and experts say much of global efforts to fight climate change de ...
Tuesday, 09 November 21
CHINA DAILY COAL OUTPUT HITS MULTI-YEAR PEAK, PRICES EXPECTED TO FALL - REUTERS
China’s daily coal output hit 11.93 million tonnes last week, a multi-year high as more capacity returned to operation, the state planner sai ...
Thursday, 04 November 21
CHINA'S COAL MARKET SEES SIGNIFICANT IMPROVEMENTS: NDRC - GLOBAL TIMES
China’s top economic planner has declared initial success in its efforts to ensure coal supply and stabilize prices, saying that daily coal o ...
Thursday, 04 November 21
CHINA THERMAL COAL PRICES RISE AFTER FALLING FOR 10 DAYS - REUTERS
China thermal coal futures rebounded on Wednesday after falling for 10 days on an expected jump in fuel demand to meet heating needs amid forecasts ...
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- London Commodity Brokers - England
- The State Trading Corporation of India Ltd
- Posco Energy - South Korea
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Asam (Persero) Tbk - Indonesia
- Aditya Birla Group - India
- Antam Resourcindo - Indonesia
- Grasim Industreis Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Rio Tinto Coal - Australia
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Sical Logistics Limited - India
- IEA Clean Coal Centre - UK
- Edison Trading Spa - Italy
- Sinarmas Energy and Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Parliament of New Zealand
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- Indian Oil Corporation Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Authority, New Zealand
- Essar Steel Hazira Ltd - India
- Timah Investasi Mineral - Indoneisa
- Indogreen Group - Indonesia
- Africa Commodities Group - South Africa
- Makarim & Taira - Indonesia
- Bukit Makmur.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Latin American Coal - Colombia
- Borneo Indobara - Indonesia
- The Treasury - Australian Government
- PTC India Limited - India
- GMR Energy Limited - India
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- Independent Power Producers Association of India
- Singapore Mercantile Exchange
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Simpson Spence & Young - Indonesia
- The University of Queensland
- Kartika Selabumi Mining - Indonesia
- Videocon Industries ltd - India
- Siam City Cement PLC, Thailand
- Uttam Galva Steels Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Chamber of Mines of South Africa
- GN Power Mariveles Coal Plant, Philippines
- Ceylon Electricity Board - Sri Lanka
- Meralco Power Generation, Philippines
- Orica Mining Services - Indonesia
- Carbofer General Trading SA - India
- Madhucon Powers Ltd - India
- SMC Global Power, Philippines
- MS Steel International - UAE
- Romanian Commodities Exchange
- Merrill Lynch Commodities Europe
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- Australian Commodity Traders Exchange
- Tamil Nadu electricity Board
- Baramulti Group, Indonesia
- PowerSource Philippines DevCo
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Savvy Resources Ltd - HongKong
- Maharashtra Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- South Luzon Thermal Energy Corporation
- Marubeni Corporation - India
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Central Java Power - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Ind-Barath Power Infra Limited - India
- AsiaOL BioFuels Corp., Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Minerals Council of Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Kumho Petrochemical, South Korea
- Agrawal Coal Company - India
- Bhoruka Overseas - Indonesia
- LBH Netherlands Bv - Netherlands
- Coastal Gujarat Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Interocean Group of Companies - India
- Pipit Mutiara Jaya. PT, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Asmin Koalindo Tuhup - Indonesia
- San Jose City I Power Corp, Philippines
- Karaikal Port Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Bangladesh Power Developement Board
- Gujarat Mineral Development Corp Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jindal Steel & Power Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Gujarat Sidhee Cement - India
- Port Waratah Coal Services - Australia
- Bukit Baiduri Energy - Indonesia
- Cement Manufacturers Association - India
- Indian Energy Exchange, India
- Trasteel International SA, Italy
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- Star Paper Mills Limited - India
- Therma Luzon, Inc, Philippines
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- Thiess Contractors Indonesia
- Samtan Co., Ltd - South Korea
- TNB Fuel Sdn Bhd - Malaysia
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- Wilmar Investment Holdings
- VISA Power Limited - India
- Siam City Cement - Thailand
- Rashtriya Ispat Nigam Limited - India
- Metalloyd Limited - United Kingdom
- Indika Energy - Indonesia
- Coalindo Energy - Indonesia
- Economic Council, Georgia
- Central Electricity Authority - India
- Georgia Ports Authority, United States
- Australian Coal Association
- Anglo American - United Kingdom
- Orica Australia Pty. Ltd.
- Globalindo Alam Lestari - Indonesia
- Heidelberg Cement - Germany
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Vedanta Resources Plc - India
- Sarangani Energy Corporation, Philippines
- SMG Consultants - Indonesia
- Semirara Mining Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- TeaM Sual Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Kepco SPC Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- GVK Power & Infra Limited - India
- Eastern Energy - Thailand
- Energy Link Ltd, New Zealand
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- White Energy Company Limited
- Sindya Power Generating Company Private Ltd
- Oldendorff Carriers - Singapore
- Dalmia Cement Bharat India
- Mjunction Services Limited - India
- Global Coal Blending Company Limited - Australia
- New Zealand Coal & Carbon
- Vizag Seaport Private Limited - India
- Ambuja Cements Ltd - India
- Goldman Sachs - Singapore
- Coal and Oil Company - UAE
- Bhatia International Limited - India
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bayan Resources Tbk. - Indonesia
- Sakthi Sugars Limited - India
- Neyveli Lignite Corporation Ltd, - India
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Karbindo Abesyapradhi - Indoneisa
- McConnell Dowell - Australia
- Cigading International Bulk Terminal - Indonesia
- Mercator Lines Limited - India
- Price Waterhouse Coopers - Russia
- Medco Energi Mining Internasional
- International Coal Ventures Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- IHS Mccloskey Coal Group - USA
- Deloitte Consulting - India
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Parry Sugars Refinery, India
- Straits Asia Resources Limited - Singapore
- GAC Shipping (India) Pvt Ltd
- PetroVietnam Power Coal Import and Supply Company
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