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.
|
|
Friday, 18 May 12
EXPORT TAX WILL ERODE PROFITS, INDONESIAN COAL EXEC COMPLAINS - THE JAKARTA GLOBE
The Jakarta Globe reported that, A 20 percent export duty the government has imposed on 14 mineral ore products will not only take a toll on mining ...
Friday, 18 May 12
KOREA EAST WEST POWER LOOKING FOR TOTAL 2.6 MILLION TONS OF 4600 NAR COAL AT FIXED PRICE FOR 5 YEARS
COALspot.com - Korea East West Power Co., Ltd is inviting bids to supply of 520,000 Metric Tons (per annum) of minimum 4,600 kcal/kg coal of N ...
Friday, 18 May 12
NICKEL ORE CARGOES ARE NOT SEEN IN MARKET ANYMORE DUE TO ON-GOING INDONESIAN BAN - FEARNLEYS AS
Handy
The market remained variable.
Fronthaul voyages both from Baltic and Black Sea paid over USD 18k/day. From USG to Cont tonnage would get ...
Thursday, 17 May 12
COAL MINERS OPPOSE EXPORT TAX, SUGGEST OUTPUT QUOTA - THE JAKARTA POST
The Jakarta Post reported that, coal miners have suggested that the government apply a production quota instead of implementing an export tax in ord ...
Thursday, 17 May 12
DRY BULK MARKET STILL LOOKING FOR NEW DIRECTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept on moving sideways during this week, with the mixed performance across all segments. Yesterday, the industry’s be ...
|
|
|
Showing 4726 to 4730 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Siam City Cement PLC, Thailand
- India Bulls Power Limited - India
- Kideco Jaya Agung - Indonesia
- San Jose City I Power Corp, Philippines
- Edison Trading Spa - Italy
- GAC Shipping (India) Pvt Ltd
- Coal and Oil Company - UAE
- Uttam Galva Steels Limited - India
- Meenaskhi Energy Private Limited - India
- Dalmia Cement Bharat India
- Directorate General of MIneral and Coal - Indonesia
- The Treasury - Australian Government
- Kobexindo Tractors - Indoneisa
- Australian Coal Association
- Heidelberg Cement - Germany
- Bangladesh Power Developement Board
- TNB Fuel Sdn Bhd - Malaysia
- Borneo Indobara - Indonesia
- Bukit Makmur.PT - Indonesia
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- CIMB Investment Bank - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Jindal Steel & Power Ltd - India
- Africa Commodities Group - South Africa
- Georgia Ports Authority, United States
- Sojitz Corporation - Japan
- PetroVietnam Power Coal Import and Supply Company
- Aboitiz Power Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Krishnapatnam Port Company Ltd. - India
- Madhucon Powers Ltd - India
- Coastal Gujarat Power Limited - India
- Global Green Power PLC Corporation, Philippines
- ICICI Bank Limited - India
- Mjunction Services Limited - India
- Port Waratah Coal Services - Australia
- SN Aboitiz Power Inc, Philippines
- Orica Australia Pty. Ltd.
- Rashtriya Ispat Nigam Limited - India
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Lanco Infratech Ltd - India
- Directorate Of Revenue Intelligence - India
- Ambuja Cements Ltd - India
- Straits Asia Resources Limited - Singapore
- Eastern Energy - Thailand
- Bulk Trading Sa - Switzerland
- Latin American Coal - Colombia
- Central Java Power - Indonesia
- Wilmar Investment Holdings
- South Luzon Thermal Energy Corporation
- Indo Tambangraya Megah - Indonesia
- Australian Commodity Traders Exchange
- Indonesian Coal Mining Association
- Ministry of Transport, Egypt
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Petron Corporation, Philippines
- Economic Council, Georgia
- VISA Power Limited - India
- Tamil Nadu electricity Board
- Gujarat Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Agrawal Coal Company - India
- Kartika Selabumi Mining - Indonesia
- Cement Manufacturers Association - India
- SMG Consultants - Indonesia
- Xindia Steels Limited - India
- Barasentosa Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Minerals Council of Australia
- Indian Oil Corporation Limited
- Semirara Mining Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- SMC Global Power, Philippines
- Global Business Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Anglo American - United Kingdom
- Attock Cement Pakistan Limited
- Therma Luzon, Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indogreen Group - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Posco Energy - South Korea
- Independent Power Producers Association of India
- Globalindo Alam Lestari - Indonesia
- Larsen & Toubro Limited - India
- Thiess Contractors Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kalimantan Lumbung Energi - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Maheswari Brothers Coal Limited - India
- Baramulti Group, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Timah Investasi Mineral - Indoneisa
- Thai Mozambique Logistica
- Gujarat Sidhee Cement - India
- Bayan Resources Tbk. - Indonesia
- Salva Resources Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- Global Coal Blending Company Limited - Australia
- Toyota Tsusho Corporation, Japan
- Ministry of Mines - Canada
- Sakthi Sugars Limited - India
- Antam Resourcindo - Indonesia
- Jaiprakash Power Ventures ltd
- Metalloyd Limited - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- CNBM International Corporation - China
- Power Finance Corporation Ltd., India
- Sree Jayajothi Cements Limited - India
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- LBH Netherlands Bv - Netherlands
- New Zealand Coal & Carbon
- IHS Mccloskey Coal Group - USA
- Sindya Power Generating Company Private Ltd
- White Energy Company Limited
- European Bulk Services B.V. - Netherlands
- Interocean Group of Companies - India
- Asmin Koalindo Tuhup - Indonesia
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Coalindo Energy - Indonesia
- Makarim & Taira - Indonesia
- Samtan Co., Ltd - South Korea
- Vizag Seaport Private Limited - India
- Iligan Light & Power Inc, Philippines
- MS Steel International - UAE
- Videocon Industries ltd - India
- Standard Chartered Bank - UAE
- Indika Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- London Commodity Brokers - England
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- Malabar Cements Ltd - India
- Formosa Plastics Group - Taiwan
- TeaM Sual Corporation - Philippines
- Eastern Coal Council - USA
- Planning Commission, India
- Energy Development Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Romanian Commodities Exchange
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- GMR Energy Limited - India
- Renaissance Capital - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- Central Electricity Authority - India
- Star Paper Mills Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Finance - Indonesia
- Medco Energi Mining Internasional
- Karbindo Abesyapradhi - Indoneisa
- Mercuria Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
- Riau Bara Harum - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- The University of Queensland
- Singapore Mercantile Exchange
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- Altura Mining Limited, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Mining Services - Indonesia
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Deloitte Consulting - India
- The State Trading Corporation of India Ltd
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Carbofer General Trading SA - India
- PTC India Limited - India
- Tata Chemicals Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Rio Tinto Coal - Australia
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Goldman Sachs - Singapore
- Wood Mackenzie - Singapore
|
| |
| |
|
