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Friday, 21 January 22
CHINA'S POWER TRADING TARIFFS TO RISE IN 2022 - FITCH RATINGS
 Rising trading volume and higher-than-benchmark tariffs in the 2022 bilateral contracts signed between Chinese power generation companies (gencos) and end-users signal an increase in power trading tariffs, reflecting the gencos' intention to recoup profit amid elevated coal prices and increased participation in market trading by commercial and industrial (C&I) customers, says Fitch Ratings.
Some Chinese power gencos enter into the next year's annual market trading contracts with end-users - mainly C&I customers - at the end of the current year. The bilateral contracts account for most of their annual trading volume and set the tariff agreed upon between both parties.
Jiangsu province's 2022 power market trading volume in these bilateral contracts will rise by 9.7% from a year earlier with the average trading tariff for coal-fired power at CNY466.78/MWh, higher than the local benchmark coal-fired tariff by 19.36% and almost reaching the price ceiling of CNY469.2/MWh. Guangdong province's annual electricity to be sold under the bilateral negotiated trading mechanism in 2022 will rise by 21.1% from a year earlier, and its average selling price will exceed its benchmark tariff by 7.35%, in stark contrast to 2021 when the annual traded power was sold at a discount of 11.56% to the benchmark tariff.
The 2022 annual power trading prices in south Hebei, Shaanxi and Hainan provinces will also approach the upper limit of 20% above their provincial benchmark tariffs.
The higher nationwide market trading tariff in 2022 follows a coal price rally in 2021, which significantly squeezed gencos' profit margins. The Qinhuangdao 5,500kcal/kg benchmark thermal coal price fell to CNY945 per tonne on 18 January 2022 after government intervention, from more than CNY1,300/tonne on average in 4Q21, but prices are still much higher than in 2019 and 2020. Fitch expects provinces that experienced severe power shortages in 2021 to set higher market trading tariffs in 2022, as price hikes are more acceptable by most end-users than blackouts.
The Chinese power trading market has also expanded, as all C&I users are now required to participate, implying higher tariffs as a fixed retail tariff is no longer an option for them. The local power grid can serve as their power purchasing agent in the transitional period, but the tariff it offers tends to be more volatile and sometimes higher than that of long-term contracted power from gencos.
Renewable power trading prices agreed upon between gencos and users in bilateral contracts for 2022 in eastern China will also increase. The average trading price of renewable power in Jiangsu province will be CNY72/MWh, or 8.38%, higher than the coal-fired benchmark tariff, while the average price of green power in Guangdong province will be higher by CNY61/MWh, much wider than the CNY30/MWh-CNY50/MWh premium to the coal-fired benchmark tariff in September 2021 when China's pilot scheme for green power trading started.
Fitch expects the premium of renewable power trading prices to rise further in eastern China, where curtailment risk is low due to strong market demand for electricity. The premium over coal-fired tariff is supported by high demand for renewable power from state-owned users, which are now evaluated by their government parents on their performance in achieving carbon-neutrality goals.
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Saturday, 30 October 21
CHINA'S COAL PRICES SEE BIGGEST WEEKLY FALL IN MORE THAN 5 YEARS - REUTERS
China’s coal futures prices saw their biggest fall in more than five years after the powerful state planner said there is still room to adjus ...
Saturday, 30 October 21
G-20 LEADERS PREPARE STATEMENT TO STOP FUNDING FOREIGN COAL PLANTS - BLOOMBERG
Leaders of the Group of 20 wealthy economies are preparing to pledge to stop funding foreign coal-fired plants, but are still wrangling over climat ...
Friday, 29 October 21
APAC THERMAL COAL SUPPLY TO REMAIN TIGHT AS WINTER LOOMS - FITCH RATINGS
APAC thermal coal prices have surged, hitting historically high levels. The benchmark Newcastle 6,000kcal/kg grade coal reached USD228/tonne in mid ...
Thursday, 28 October 21
CANADA BAN ON SHIPPING COAL WOULD EQUAL SCRAPPING AS MANY AS 3 MILLION CARS - IEEFA
Canada ban on shipping coal would equal scrapping as many as 3 million cars
Change in Canadian policy could have major implications ...
Tuesday, 26 October 21
CHINA'S COAL-RICH SHANXI BEEFS UP COAL PRODUCTION - XINHUA
Major coal producers in north China’s Shanxi Province, a leading coal-producing region of the country, have beefed up production to ensure en ...
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- Energy Development Corp, Philippines
- SMC Global Power, Philippines
- Bukit Baiduri Energy - Indonesia
- Bhatia International Limited - India
- Orica Mining Services - Indonesia
- Mjunction Services Limited - India
- AsiaOL BioFuels Corp., Philippines
- Borneo Indobara - Indonesia
- Mintek Dendrill Indonesia
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- New Zealand Coal & Carbon
- Standard Chartered Bank - UAE
- The Treasury - Australian Government
- VISA Power Limited - India
- GMR Energy Limited - India
- San Jose City I Power Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Parry Sugars Refinery, India
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- Indonesian Coal Mining Association
- Anglo American - United Kingdom
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- Coal and Oil Company - UAE
- International Coal Ventures Pvt Ltd - India
- The University of Queensland
- London Commodity Brokers - England
- Wilmar Investment Holdings
- European Bulk Services B.V. - Netherlands
- SMG Consultants - Indonesia
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Iligan Light & Power Inc, Philippines
- Cement Manufacturers Association - India
- Salva Resources Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Global Coal Blending Company Limited - Australia
- Bukit Makmur.PT - Indonesia
- Sree Jayajothi Cements Limited - India
- CIMB Investment Bank - Malaysia
- Commonwealth Bank - Australia
- Kideco Jaya Agung - Indonesia
- South Luzon Thermal Energy Corporation
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Kalimantan Lumbung Energi - Indonesia
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- GVK Power & Infra Limited - India
- Georgia Ports Authority, United States
- PTC India Limited - India
- Electricity Authority, New Zealand
- Attock Cement Pakistan Limited
- Energy Link Ltd, New Zealand
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Grasim Industreis Ltd - India
- Makarim & Taira - Indonesia
- Sakthi Sugars Limited - India
- Sindya Power Generating Company Private Ltd
- Videocon Industries ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- Directorate General of MIneral and Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Electricity Generating Authority of Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Cigading International Bulk Terminal - Indonesia
- Romanian Commodities Exchange
- TNB Fuel Sdn Bhd - Malaysia
- White Energy Company Limited
- McConnell Dowell - Australia
- Marubeni Corporation - India
- Bayan Resources Tbk. - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Rio Tinto Coal - Australia
- Leighton Contractors Pty Ltd - Australia
- Meralco Power Generation, Philippines
- Indo Tambangraya Megah - Indonesia
- Aditya Birla Group - India
- Economic Council, Georgia
- Therma Luzon, Inc, Philippines
- MS Steel International - UAE
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- Siam City Cement PLC, Thailand
- Indian Energy Exchange, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Semirara Mining Corp, Philippines
- Jaiprakash Power Ventures ltd
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- Mercuria Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Samtan Co., Ltd - South Korea
- Australian Commodity Traders Exchange
- Deloitte Consulting - India
- Vijayanagar Sugar Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Merrill Lynch Commodities Europe
- Tamil Nadu electricity Board
- Australian Coal Association
- ICICI Bank Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Asmin Koalindo Tuhup - Indonesia
- Kobexindo Tractors - Indoneisa
- Siam City Cement - Thailand
- Star Paper Mills Limited - India
- Altura Mining Limited, Indonesia
- Ministry of Mines - Canada
- Ministry of Finance - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Coal Council - USA
- Latin American Coal - Colombia
- IEA Clean Coal Centre - UK
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Madhucon Powers Ltd - India
- Tata Chemicals Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Orica Australia Pty. Ltd.
- IHS Mccloskey Coal Group - USA
- Port Waratah Coal Services - Australia
- Coalindo Energy - Indonesia
- Banpu Public Company Limited - Thailand
- SN Aboitiz Power Inc, Philippines
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Karaikal Port Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Holcim Trading Pte Ltd - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sical Logistics Limited - India
- Coastal Gujarat Power Limited - India
- Antam Resourcindo - Indonesia
- ASAPP Information Group - India
- Global Business Power Corporation, Philippines
- Central Electricity Authority - India
- Interocean Group of Companies - India
- Straits Asia Resources Limited - Singapore
- Sinarmas Energy and Mining - Indonesia
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Ind-Barath Power Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Singapore Mercantile Exchange
- Krishnapatnam Port Company Ltd. - India
- Thiess Contractors Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Chamber of Mines of South Africa
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- Lanco Infratech Ltd - India
- Bangladesh Power Developement Board
- Malabar Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indika Energy - Indonesia
- Riau Bara Harum - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Central Java Power - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- Eastern Energy - Thailand
- Maheswari Brothers Coal Limited - India
- Heidelberg Cement - Germany
- Goldman Sachs - Singapore
- Jindal Steel & Power Ltd - India
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- CNBM International Corporation - China
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- Sojitz Corporation - Japan
- Baramulti Group, Indonesia
- Intertek Mineral Services - Indonesia
- Dalmia Cement Bharat India
- Medco Energi Mining Internasional
- Renaissance Capital - South Africa
- Ministry of Transport, Egypt
- Larsen & Toubro Limited - India
- Gujarat Electricity Regulatory Commission - India
- Parliament of New Zealand
- Kepco SPC Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Petron Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Minerals Council of Australia
- Maharashtra Electricity Regulatory Commission - India
- Planning Commission, India
- Oldendorff Carriers - Singapore
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