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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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Saturday, 21 July 12
THE FREIGHT RATES ARE EXPECTED TO BE FLAT TO SOFT NEXT WEEK - VISTAAR
COALspot.com - The freight market was soft this week as all the segments were down.
The BDI was down by 6.58 pct closing at 1,037 points and the ...
Saturday, 21 July 12
INDONESIAN COMPANIES ABM INVESTAMA AND AVRA ASIA WORK OUT LONG-TERM CONTRACT - THE JAKARTA GLOBE
The Jakarta Globe, one of the leading English news papaer in Indonesia reported that, ABM Investama, a company with diversified interests in coal mi ...
Friday, 20 July 12
INDONESIA-INDIA SUPRAS BEING FIXED AT $ 10K
Handy
After a stable last week, the Handysize market has experienced softening rates in the Atlantic. Ships are ballasting from India into the Atla ...
Friday, 20 July 12
HANDYSIZES PROVE RATHER ATTRACTIVE AMONG OTHER SHIPS, IN TERMS OF FUTURE RETURNS ON INVESTMENT - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The Handysize segment of the dry bulk market appears to offer the best incentive among other ship types, for a ship owners to invest in, says Interm ...
Wednesday, 18 July 12
TAIWAN POWER COMPANY TO IMPORT 0.588 MILLION TONS OF LOW ASH AND EXTRA LOW SULFUR SUB-BITUMINOUS COAL
COALspot.com - Taiwan Power Company intends to procure 588,000 MT tons of extra low sulfur sub-bituminous coal for Taipower thermal power plant thro ...
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Showing 4651 to 4655 news of total 6871 |
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- Jindal Steel & Power Ltd - India
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Standard Chartered Bank - UAE
- Commonwealth Bank - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- TNB Fuel Sdn Bhd - Malaysia
- Chamber of Mines of South Africa
- Vedanta Resources Plc - India
- Kapuas Tunggal Persada - Indonesia
- The State Trading Corporation of India Ltd
- Antam Resourcindo - Indonesia
- Madhucon Powers Ltd - India
- ASAPP Information Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Energy Link Ltd, New Zealand
- Therma Luzon, Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement - Thailand
- Lanco Infratech Ltd - India
- International Coal Ventures Pvt Ltd - India
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhatia International Limited - India
- Bukit Baiduri Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Mercuria Energy - Indonesia
- The University of Queensland
- Miang Besar Coal Terminal - Indonesia
- Romanian Commodities Exchange
- Georgia Ports Authority, United States
- Central Java Power - Indonesia
- Formosa Plastics Group - Taiwan
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Sakthi Sugars Limited - India
- Bukit Makmur.PT - Indonesia
- Star Paper Mills Limited - India
- Deloitte Consulting - India
- Bhoruka Overseas - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rio Tinto Coal - Australia
- Iligan Light & Power Inc, Philippines
- MS Steel International - UAE
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Mining Services - Indonesia
- Electricity Authority, New Zealand
- TeaM Sual Corporation - Philippines
- Ministry of Finance - Indonesia
- Global Coal Blending Company Limited - Australia
- Attock Cement Pakistan Limited
- Bahari Cakrawala Sebuku - Indonesia
- Makarim & Taira - Indonesia
- Mintek Dendrill Indonesia
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Pipit Mutiara Jaya. PT, Indonesia
- Ambuja Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Vizag Seaport Private Limited - India
- Altura Mining Limited, Indonesia
- IHS Mccloskey Coal Group - USA
- Central Electricity Authority - India
- Toyota Tsusho Corporation, Japan
- GAC Shipping (India) Pvt Ltd
- Simpson Spence & Young - Indonesia
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Orica Australia Pty. Ltd.
- Samtan Co., Ltd - South Korea
- Indian Energy Exchange, India
- Mercator Lines Limited - India
- Sree Jayajothi Cements Limited - India
- Metalloyd Limited - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- OPG Power Generation Pvt Ltd - India
- VISA Power Limited - India
- Marubeni Corporation - India
- Kumho Petrochemical, South Korea
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Uttam Galva Steels Limited - India
- McConnell Dowell - Australia
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- Thiess Contractors Indonesia
- PNOC Exploration Corporation - Philippines
- Bharathi Cement Corporation - India
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Energy - Thailand
- Price Waterhouse Coopers - Russia
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Borneo Indobara - Indonesia
- Meenaskhi Energy Private Limited - India
- Merrill Lynch Commodities Europe
- Ceylon Electricity Board - Sri Lanka
- Cement Manufacturers Association - India
- Tamil Nadu electricity Board
- Jorong Barutama Greston.PT - Indonesia
- Parry Sugars Refinery, India
- Indonesian Coal Mining Association
- ICICI Bank Limited - India
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Renaissance Capital - South Africa
- Directorate General of MIneral and Coal - Indonesia
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Medco Energi Mining Internasional
- Indian Oil Corporation Limited
- Gujarat Sidhee Cement - India
- Africa Commodities Group - South Africa
- Edison Trading Spa - Italy
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- SMG Consultants - Indonesia
- SN Aboitiz Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Anglo American - United Kingdom
- Larsen & Toubro Limited - India
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- PowerSource Philippines DevCo
- Chettinad Cement Corporation Ltd - India
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Indika Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Posco Energy - South Korea
- The Treasury - Australian Government
- Bhushan Steel Limited - India
- Heidelberg Cement - Germany
- Sical Logistics Limited - India
- Manunggal Multi Energi - Indonesia
- Planning Commission, India
- Kobexindo Tractors - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Electricity Generating Authority of Thailand
- Goldman Sachs - Singapore
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Neyveli Lignite Corporation Ltd, - India
- South Luzon Thermal Energy Corporation
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMC Global Power, Philippines
- Interocean Group of Companies - India
- Leighton Contractors Pty Ltd - Australia
- Ind-Barath Power Infra Limited - India
- Carbofer General Trading SA - India
- Vijayanagar Sugar Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Economic Council, Georgia
- Aditya Birla Group - India
- GMR Energy Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- GVK Power & Infra Limited - India
- Wilmar Investment Holdings
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Global Green Power PLC Corporation, Philippines
- Videocon Industries ltd - India
- Karaikal Port Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Barasentosa Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Eastern Coal Council - USA
- India Bulls Power Limited - India
- Independent Power Producers Association of India
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- Coastal Gujarat Power Limited - India
- Essar Steel Hazira Ltd - India
- LBH Netherlands Bv - Netherlands
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Indogreen Group - Indonesia
- Latin American Coal - Colombia
- Sojitz Corporation - Japan
- Riau Bara Harum - Indonesia
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Meralco Power Generation, Philippines
- White Energy Company Limited
- Sinarmas Energy and Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
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