Coal news and updates

China’s coal-fired power generators have seen profits evaporate amid surging domestic prices, with imports unable to provide much relief amid an ongoing unofficial ban on buying cargoes from major exporter Australia.

 

Out of 10 listed coal-fired power companies, four reported losses and five others saw first-half profits plunge, according to a report on Chinese energy industry website BJX News on July 27.

 

The only utility to post a rise in profits was Changyuan Electric, which benefited from its large portfolio of renewable energy, according to Refinitiv analyst Yan Qin.

 

The dramatic drop in profitability comes amid a surge in domestic thermal coal prices, with SteelHome data showing the benchmark price at Qinhuangdao in northern China ending at 1,009 yuan ($155.47) a tonne on Wednesday.

 

This was the highest price since the consultancy started collating data in December 2011, and it means that coal has more than doubled from a 467 yuan a tonne low in 2020, reached amid slumping power demand as China locked down much of its economy to combat the spread of the coronavirus pandemic.

 

It also means domestic coal prices are well above the unofficial government target zone of 500 to 570 yuan a tonne, a level believed to provide both miners and utilities with sufficient profits.

 

The rise in domestic coal prices can largely be put down to strong gains in electricity demand as the economy rebounds from the pandemic, and muted growth in coal output amid increased checks to boost safety.

 

Total power demand rose in June to 703.3 billion kilowatt hours, up 9.8% from the same month in 2020, taking the gain in consumption to 16.2% in the first six months of the year.

 

However, domestic coal output dropped 5% in June from the year earlier month to 323.2 million tonnes, with production in the first half gaining 6.4% to 1.95 billion tonnes.

 

 

Source : https://www.hellenicshippingnews.com