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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, 22 May 12
NEW ONE-YEAR TIME CHARTERS FOR TWO VESSELS OF EXCEL MARITIME CARRIERS LTD.
Excel Maritime Carriers Ltd. (NYSE: EXM), an owner and operator of dry bulk carriers and an international provider of worldwide seaborne transportat ...
Tuesday, 22 May 12
DRY BULK MARKET STEADY, AWAITING FURTHER RISE IN DEMAND WHICH IS DOUBTFUL - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Traditionally, the second and third quarters of the year are the strongest for the dry bulk market, but this year, things seem to be quite subdued, ...
Sunday, 20 May 12
SPOT FREIGHT RATE DIPS FURTHER - VISTAAR
COALspot.com - The BDI was marginally up by 3 points (0.26 pct) closing at 1,141 points.
The cape index was up by 1.17 pct closing at 1,633 point ...
Saturday, 19 May 12
INDONESIAN SUB-BITUMINOUS COAL SWAPS DROP US$ 2.88 PMT W-O-W
COALspot.com - Indonesian sub-bituminous coal swaps and CFR South China coal contracts for June deliveries have drops this week by 3.86 percent and& ...
Saturday, 19 May 12
INDONESIAN EXPORT TAX GIVES COAL MINERS A CHEAP RIDE: ANALYSTS - THE JAKARTA GLOBE
The Jakarta Globe reported that, Indonesia’s policy to exclude coal from an export tax that has been applied to 14 other mineral commodities h ...
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Showing 4721 to 4725 news of total 6871 |
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- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Carbofer General Trading SA - India
- Australian Coal Association
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- Larsen & Toubro Limited - India
- Ind-Barath Power Infra Limited - India
- Kobexindo Tractors - Indoneisa
- Romanian Commodities Exchange
- Central Java Power - Indonesia
- India Bulls Power Limited - India
- Siam City Cement - Thailand
- ICICI Bank Limited - India
- Thai Mozambique Logistica
- Semirara Mining Corp, Philippines
- Interocean Group of Companies - India
- Star Paper Mills Limited - India
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- Ambuja Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- Australian Commodity Traders Exchange
- Meralco Power Generation, Philippines
- Africa Commodities Group - South Africa
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Indika Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Manunggal Multi Energi - Indonesia
- Orica Australia Pty. Ltd.
- Coalindo Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Videocon Industries ltd - India
- Kaltim Prima Coal - Indonesia
- Vedanta Resources Plc - India
- Semirara Mining and Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Bhatia International Limited - India
- Energy Development Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Eastern Coal Council - USA
- Ministry of Mines - Canada
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- Orica Mining Services - Indonesia
- SMG Consultants - Indonesia
- PNOC Exploration Corporation - Philippines
- Oldendorff Carriers - Singapore
- Banpu Public Company Limited - Thailand
- Dalmia Cement Bharat India
- Mjunction Services Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- Bhoruka Overseas - Indonesia
- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Intertek Mineral Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Commonwealth Bank - Australia
- Trasteel International SA, Italy
- European Bulk Services B.V. - Netherlands
- Mercator Lines Limited - India
- Sical Logistics Limited - India
- VISA Power Limited - India
- Attock Cement Pakistan Limited
- GMR Energy Limited - India
- ASAPP Information Group - India
- Rashtriya Ispat Nigam Limited - India
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Oil Corporation Limited
- Karaikal Port Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Directorate Of Revenue Intelligence - India
- Goldman Sachs - Singapore
- Planning Commission, India
- CIMB Investment Bank - Malaysia
- Indian Energy Exchange, India
- Anglo American - United Kingdom
- Petrochimia International Co. Ltd.- Taiwan
- GAC Shipping (India) Pvt Ltd
- Leighton Contractors Pty Ltd - Australia
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- Iligan Light & Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Baramulti Group, Indonesia
- Energy Link Ltd, New Zealand
- Ceylon Electricity Board - Sri Lanka
- Lanco Infratech Ltd - India
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- Sakthi Sugars Limited - India
- Renaissance Capital - South Africa
- Agrawal Coal Company - India
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Central Electricity Authority - India
- Thiess Contractors Indonesia
- Essar Steel Hazira Ltd - India
- Antam Resourcindo - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Rio Tinto Coal - Australia
- Coastal Gujarat Power Limited - India
- Indo Tambangraya Megah - Indonesia
- San Jose City I Power Corp, Philippines
- Standard Chartered Bank - UAE
- Directorate General of MIneral and Coal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Global Business Power Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Economic Council, Georgia
- TNB Fuel Sdn Bhd - Malaysia
- Riau Bara Harum - Indonesia
- Parliament of New Zealand
- New Zealand Coal & Carbon
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- Malabar Cements Ltd - India
- PTC India Limited - India
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Tata Chemicals Ltd - India
- Sarangani Energy Corporation, Philippines
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- MS Steel International - UAE
- The University of Queensland
- Jorong Barutama Greston.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Bayan Resources Tbk. - Indonesia
- Electricity Authority, New Zealand
- LBH Netherlands Bv - Netherlands
- Aditya Birla Group - India
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- Salva Resources Pvt Ltd - India
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Minerals Council of Australia
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
- South Luzon Thermal Energy Corporation
- Chettinad Cement Corporation Ltd - India
- Straits Asia Resources Limited - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Makarim & Taira - Indonesia
- Savvy Resources Ltd - HongKong
- Holcim Trading Pte Ltd - Singapore
- Maheswari Brothers Coal Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Sidhee Cement - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- Heidelberg Cement - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- Pipit Mutiara Jaya. PT, Indonesia
- Gujarat Electricity Regulatory Commission - India
- IEA Clean Coal Centre - UK
- Asmin Koalindo Tuhup - Indonesia
- Bhushan Steel Limited - India
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- Madhucon Powers Ltd - India
- Ministry of Finance - Indonesia
- PowerSource Philippines DevCo
- Singapore Mercantile Exchange
- Bukit Baiduri Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Uttam Galva Steels Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Latin American Coal - Colombia
- SN Aboitiz Power Inc, Philippines
- Deloitte Consulting - India
- Toyota Tsusho Corporation, Japan
- AsiaOL BioFuels Corp., Philippines
- Xindia Steels Limited - India
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- Indogreen Group - Indonesia
- Bulk Trading Sa - Switzerland
- Sree Jayajothi Cements Limited - India
- Tamil Nadu electricity Board
- Electricity Generating Authority of Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Binh Thuan Hamico - Vietnam
- Miang Besar Coal Terminal - Indonesia
- TeaM Sual Corporation - Philippines
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