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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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Thursday, 27 January 22
2022 - A YEAR OF REBALANCING FOR METALS AND MINING - WOOD MACKENZIE
If 2021 was the year of rebound for metals and mining (M&M) commodities, then 2022 is shaping as the year of rebalance, says Wood Mackenzie, a ...
Wednesday, 26 January 22
MARKET INSIGHT - INTERMODAL
While it is logical that most of the S&P reports of the first weeks of the year are linked to very limited activity as reflected in the weekly ...
Wednesday, 26 January 22
INDONESIA: DME PROJECT IS ECONOMICALLY VIABLE AS STUDY DEMONSTRATES
The government is encouraging downstream coal processing or increase in coal added value, for example by turning coal into Dimethyl Ether (DME) to ...
Wednesday, 26 January 22
COMMODITY PRICES COULD SOAR IF THE RUSSIA-UKRAINE CRISIS ESCALATES - ING
It appears that a number of commodity markets are starting to at least price in some geopolitical risk around the growing tension between Russia an ...
Wednesday, 26 January 22
INDONESIA'S COAL BAN SENDS PRICES SOARING, OTHER EXPORTERS FAIL TO STEP UP - REUTERS
Indonesia’s short-lived ban on exporting coal has sent ructions through the seaborne market for the fuel in Asia, with the fallout likely to ...
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Showing 366 to 370 news of total 6871 |
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- Siam City Cement - Thailand
- Pendopo Energi Batubara - Indonesia
- Marubeni Corporation - India
- Karaikal Port Pvt Ltd - India
- Heidelberg Cement - Germany
- Makarim & Taira - Indonesia
- International Coal Ventures Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- Kideco Jaya Agung - Indonesia
- Intertek Mineral Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Billiton Holdings Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Indo Tambangraya Megah - Indonesia
- Meenaskhi Energy Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- Videocon Industries ltd - India
- Mjunction Services Limited - India
- Madhucon Powers Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Deloitte Consulting - India
- LBH Netherlands Bv - Netherlands
- Bukit Baiduri Energy - Indonesia
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Parry Sugars Refinery, India
- South Luzon Thermal Energy Corporation
- Altura Mining Limited, Indonesia
- Riau Bara Harum - Indonesia
- Grasim Industreis Ltd - India
- Sarangani Energy Corporation, Philippines
- Oldendorff Carriers - Singapore
- Sindya Power Generating Company Private Ltd
- TeaM Sual Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Bhatia International Limited - India
- Eastern Energy - Thailand
- Banpu Public Company Limited - Thailand
- Bangladesh Power Developement Board
- GMR Energy Limited - India
- Manunggal Multi Energi - Indonesia
- Commonwealth Bank - Australia
- Kalimantan Lumbung Energi - Indonesia
- Port Waratah Coal Services - Australia
- Parliament of New Zealand
- Directorate Of Revenue Intelligence - India
- Wood Mackenzie - Singapore
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Central Java Power - Indonesia
- Meralco Power Generation, Philippines
- SN Aboitiz Power Inc, Philippines
- Antam Resourcindo - Indonesia
- Economic Council, Georgia
- Straits Asia Resources Limited - Singapore
- Savvy Resources Ltd - HongKong
- New Zealand Coal & Carbon
- Malabar Cements Ltd - India
- MS Steel International - UAE
- CIMB Investment Bank - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Aditya Birla Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Georgia Ports Authority, United States
- Energy Link Ltd, New Zealand
- Standard Chartered Bank - UAE
- Metalloyd Limited - United Kingdom
- Coal and Oil Company - UAE
- GVK Power & Infra Limited - India
- Therma Luzon, Inc, Philippines
- Sical Logistics Limited - India
- Timah Investasi Mineral - Indoneisa
- Minerals Council of Australia
- Krishnapatnam Port Company Ltd. - India
- Bukit Makmur.PT - Indonesia
- McConnell Dowell - Australia
- Renaissance Capital - South Africa
- Petron Corporation, Philippines
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Coastal Gujarat Power Limited - India
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Indika Energy - Indonesia
- Medco Energi Mining Internasional
- PTC India Limited - India
- Chettinad Cement Corporation Ltd - India
- Ministry of Transport, Egypt
- Semirara Mining Corp, Philippines
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- Formosa Plastics Group - Taiwan
- Directorate General of MIneral and Coal - Indonesia
- SMC Global Power, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- San Jose City I Power Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Power Finance Corporation Ltd., India
- The University of Queensland
- Orica Australia Pty. Ltd.
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- White Energy Company Limited
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Sidhee Cement - India
- IEA Clean Coal Centre - UK
- ASAPP Information Group - India
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- Vijayanagar Sugar Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Indonesian Coal Mining Association
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Indian Oil Corporation Limited
- Kobexindo Tractors - Indoneisa
- Indogreen Group - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Agrawal Coal Company - India
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
- Baramulti Group, Indonesia
- Merrill Lynch Commodities Europe
- Larsen & Toubro Limited - India
- Independent Power Producers Association of India
- Eastern Coal Council - USA
- Anglo American - United Kingdom
- Global Business Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Aboitiz Power Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Gujarat Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Xindia Steels Limited - India
- Bharathi Cement Corporation - India
- Africa Commodities Group - South Africa
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Carbofer General Trading SA - India
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- Thiess Contractors Indonesia
- Cigading International Bulk Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Salva Resources Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Romanian Commodities Exchange
- Kaltim Prima Coal - Indonesia
- Energy Development Corp, Philippines
- Trasteel International SA, Italy
- Jorong Barutama Greston.PT - Indonesia
- Borneo Indobara - Indonesia
- OPG Power Generation Pvt Ltd - India
- Ambuja Cements Ltd - India
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Wilmar Investment Holdings
- Bhushan Steel Limited - India
- Jindal Steel & Power Ltd - India
- Chamber of Mines of South Africa
- Sakthi Sugars Limited - India
- Interocean Group of Companies - India
- Essar Steel Hazira Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- The Treasury - Australian Government
- Bank of Tokyo Mitsubishi UFJ Ltd
- Latin American Coal - Colombia
- VISA Power Limited - India
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Kumho Petrochemical, South Korea
- Neyveli Lignite Corporation Ltd, - India
- Goldman Sachs - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Mercuria Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Cement Manufacturers Association - India
- Karbindo Abesyapradhi - Indoneisa
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Vizag Seaport Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Finance - Indonesia
- Electricity Authority, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- Australian Coal Association
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