We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
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 ...
|
|
|
Showing 4721 to 4725 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Carbofer General Trading SA - India
- London Commodity Brokers - England
- Heidelberg Cement - Germany
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Meralco Power Generation, Philippines
- LBH Netherlands Bv - Netherlands
- Interocean Group of Companies - India
- Altura Mining Limited, Indonesia
- Anglo American - United Kingdom
- Sindya Power Generating Company Private Ltd
- Larsen & Toubro Limited - India
- MS Steel International - UAE
- GN Power Mariveles Coal Plant, Philippines
- Posco Energy - South Korea
- Billiton Holdings Pty Ltd - Australia
- Port Waratah Coal Services - Australia
- Asmin Koalindo Tuhup - Indonesia
- Price Waterhouse Coopers - Russia
- Lanco Infratech Ltd - India
- Deloitte Consulting - India
- Kapuas Tunggal Persada - Indonesia
- Kobexindo Tractors - Indoneisa
- CIMB Investment Bank - Malaysia
- Antam Resourcindo - Indonesia
- Samtan Co., Ltd - South Korea
- Manunggal Multi Energi - Indonesia
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Central Java Power - Indonesia
- Goldman Sachs - Singapore
- Maharashtra Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- Power Finance Corporation Ltd., India
- Sree Jayajothi Cements Limited - India
- Commonwealth Bank - Australia
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- Marubeni Corporation - India
- Ministry of Transport, Egypt
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- PTC India Limited - India
- White Energy Company Limited
- Kalimantan Lumbung Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Independent Power Producers Association of India
- Jindal Steel & Power Ltd - India
- Kideco Jaya Agung - Indonesia
- IHS Mccloskey Coal Group - USA
- Rio Tinto Coal - Australia
- Indian Oil Corporation Limited
- VISA Power Limited - India
- Mercuria Energy - Indonesia
- Australian Coal Association
- Indika Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Orica Australia Pty. Ltd.
- TNB Fuel Sdn Bhd - Malaysia
- GAC Shipping (India) Pvt Ltd
- Bharathi Cement Corporation - India
- Cigading International Bulk Terminal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Planning Commission, India
- Trasteel International SA, Italy
- Energy Link Ltd, New Zealand
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Edison Trading Spa - Italy
- GMR Energy Limited - India
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- Ministry of Finance - Indonesia
- Straits Asia Resources Limited - Singapore
- Miang Besar Coal Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Oldendorff Carriers - Singapore
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kaltim Prima Coal - Indonesia
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- Attock Cement Pakistan Limited
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Timah Investasi Mineral - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Kartika Selabumi Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Holcim Trading Pte Ltd - Singapore
- Sarangani Energy Corporation, Philippines
- PowerSource Philippines DevCo
- Parliament of New Zealand
- Chamber of Mines of South Africa
- Georgia Ports Authority, United States
- Eastern Energy - Thailand
- PNOC Exploration Corporation - Philippines
- Siam City Cement PLC, Thailand
- Xindia Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- Star Paper Mills Limited - India
- Karaikal Port Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Australian Commodity Traders Exchange
- Mjunction Services Limited - India
- Economic Council, Georgia
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- Gujarat Mineral Development Corp Ltd - India
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- Electricity Authority, New Zealand
- McConnell Dowell - Australia
- Orica Mining Services - Indonesia
- Mercator Lines Limited - India
- Alfred C Toepfer International GmbH - Germany
- Tata Chemicals Ltd - India
- Bhushan Steel Limited - India
- Ministry of Mines - Canada
- Kepco SPC Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Petron Corporation, Philippines
- Bangladesh Power Developement Board
- Semirara Mining and Power Corporation, Philippines
- Indonesian Coal Mining Association
- Grasim Industreis Ltd - India
- SN Aboitiz Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cement Manufacturers Association - India
- South Luzon Thermal Energy Corporation
- Uttam Galva Steels Limited - India
- Merrill Lynch Commodities Europe
- Singapore Mercantile Exchange
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Bukit Makmur.PT - Indonesia
- India Bulls Power Limited - India
- Standard Chartered Bank - UAE
- Bhoruka Overseas - Indonesia
- Semirara Mining Corp, Philippines
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Vedanta Resources Plc - India
- Savvy Resources Ltd - HongKong
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bayan Resources Tbk. - Indonesia
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Central Electricity Authority - India
- Coastal Gujarat Power Limited - India
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Chettinad Cement Corporation Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Madhucon Powers Ltd - India
- Essar Steel Hazira Ltd - India
- Makarim & Taira - Indonesia
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- Medco Energi Mining Internasional
- GVK Power & Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Coalindo Energy - Indonesia
- Africa Commodities Group - South Africa
- Ind-Barath Power Infra Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ambuja Cements Ltd - India
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Sical Logistics Limited - India
- Thiess Contractors Indonesia
- Metalloyd Limited - United Kingdom
- Bhatia International Limited - India
- Banpu Public Company Limited - Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Wilmar Investment Holdings
- Sojitz Corporation - Japan
- Tamil Nadu electricity Board
- Kumho Petrochemical, South Korea
- New Zealand Coal & Carbon
- Malabar Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Eastern Coal Council - USA
- Maheswari Brothers Coal Limited - India
- Baramulti Group, Indonesia
- Wood Mackenzie - Singapore
- Dalmia Cement Bharat India
- Pendopo Energi Batubara - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- SMG Consultants - Indonesia
- Aditya Birla Group - India
- The University of Queensland
- Gujarat Electricity Regulatory Commission - India
|
| |
| |
|
