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