Energy Finance

Energy Finance News Review

State Council Premier Li Keqiang presided the executive conference of the State Council on August 27th, deployed the task of facilitating the projects involving ecological and environmental protection and elder-care, etc. and promoting development and boosting upgrading by adjusting structure. It was stressed in the conference that attention should be focused on adjusting structure and facilitating the engineering and construction for a group of key projects that overcome shortcomings. It was decided in the conference that the projects like prevention and treatment of atmospheric pollution and key realm water pollution; phase II natural forest resources protection, grain for green and grass should be accelerated in this year and next year so as to promote ecological environment improvement. Greatly develop clean energy, and commence construction for a group of wind power, hydro-power, photovoltaic power and nuclear power in coastal areas.

On August 26, SinoPec Sales Company and Tencent Science & Technology signed business framework cooperation agreement. According to the agreement, both sides shall explore and cooperate in fields like business development and promotion, mobile payment, media promotion, O2O business, map-navigation, customers loyalty management, mega-data application and cross-marketing, etc.

The data announced by National Development and Reform Commission on August 25th shows that in July 2014, the added-value or output for the four industries like chemicals, construction material, steel, and non-ferrous metal slowed down altogether. The data shows that, in July, the added-value for chemical industry rose for 11.4% compared with that of the same period of time of last year, and the growth rate slowed down for 0.4% compared with that of the same period of time of last year; the out-put for the ten non-ferrous metals nationwide rose for 7.8% compared with that of the same period of time of last year, and the growth rate slowed down for 2%  compared with that of the same period of time of last year, and among which, the output for electrolytic aluminum rose for 7.1%, slowed down for 0.8%; the output for copper rose for 16.5%, the output for lead reduced by 9.6%, and the output for zinc rose for 9.4%;  the out-put for rough steel nationwide rose for 1.5% compared with that of the same period of time of last year, and the growth rate slowed down for 4.7%  compared with that of the same period of time of last year; and the output for coke rose for 2.8%, slowed down for 2.8%.

Energy Finance Data Analysis

  Shanghai and Shenzhen Composite Index of A Week

Coal & Power

Coal & Power News Review

Jiang Zhimin, vice director of China Coal Industry Association, disclosed at the ''2014 China Coal Coke Steel Industry Conference'' jointly held by large business firms and Shanghai Steel Association that, the nationwide coal sales in the first seven months was 2.053 billion tons, reduced by 32.17 million tons compared with that of the same period of time of last year, and fell for 1.54%, in which, the sales in July was 289 million tons, fell for 1.84% compared with that of the same period of time of last year. And the increasing magnitude for coal sales started to fall in May 2012 and started to grow negatively on monthly basis since this February.
As a matter of fact, since this year, sales in coal market has been falling, and the output has also been falling. Data shows that the coal output has been decreasing month by month since this year, and the output in the first seven months was 2.163 billion tons, fell for 1.45% compared with that of the same period of time of last year, and in which, the output in July was 301 million tons, fell for 1.63% compared with that of the same period of time of last year. 

Jiang Zhimin pointed out that the slowing down coal demands and over-capacity are the contradiction for the current coal market. Besides, the concentrated release of coal production capacity and the overlapping of the global coal market over supply have made the structural contradiction more apparent.

Jiang Zhimin expressed that, given the current situations, the space for coal enterprises to compress cost further is fairly limited, and the loss in the industry is getting expanded, for instance, the loss suffered by the scaled coal enterprises in the first half of this year was nearly 37 billion Yuan, rose for 54.9% compared with that of the same time period of last year, and the increasing magnitude expanded by 1% compared with that of the previous month, and the coal enterprises in seven provinces and regions all suffered from losses
In addition, the nationwide coal inventory has grown gradually since 2006 and, in 2013 the inventory rapidly grew up to more than 300 million tons, increased for 150 million tons. And by July of this year, the coal inventory in whole society has been staying above 300 million tons for 32 months continuously.

As pointed out by Jiang Zhimin, the coal inventory in coal enterprises was 100.500 million tons, creating historical record high; the coal inventory in power generating enterprises was 77 million tons which can last for 22 days; and the coal inventory at major ports was 49.88 million tons.

Coal & Power Data Analysis

  Bohai Thermal Coal Price Index (BSPI) (Unit: yuan / ton).
Published：Aug 27, 2014

Oil & Gas

Oil & Gas News Review

On August 25, the last weld was done at Yaozhanzi Village, Guazhou County, Gansu Province, for the Line III of the gas transmission line from west to east, which signified the availability of the whole Line III. With the construction done for the west section, millions of the people in Yangtze River Delta, Pearl River Delta, and Beijing, Tianjin and Pan-Bohai Region as well as Sichuan and Chongqing shall benefit.

In the last two months, international crude oil price has been shaking and moving downward, which has brought expectations that product oil price shall adjust downwardedly. In this round of pricing cycle, crude oil price shaking trends has made it almost certain that the product oil price shall 'fall for three times continuously. Chinese media predict that the product oil retail price at zero o'clock on September 2 shall move down for 140 Yuan/ton. The total business revenue for the three largest oil companies in the first half of this year was 2.6488 trillion Yuan, with net profits totaled at 133.144 billion Yuan, and by average, about 730 million Yuan was earned per day.

Russian newspaper Businessman reports that Russian Natural Gas Industry Company has agreed to export 800 thousand tons of crude oil from its oilfield Novoportovskoye at north pole and will accept payment in Renminbi and Rubels.

According to a public bulletin of Guanghui Energy, its shareholding subsidiary Xinjiang Guanghui Petroleum Company has obtained the non-state owned trading import qualification for crude oil.  According to the bulletin, the company is allowed to import maximum 200 thousand tons of crude oil, as a non-state owned business.  However, as per the customs data, the crude oil imports of China in this July was 23.75 million tons, which means the quota granted to Guanghui Energy accounts for less than 1% of the monthly imports.

The process about compiling national energy 'Thirteenth Five-Year' Plan is being studied, and one of the focuses is system reform. The direction for energy reform was disclosed in the national energy planning working conference, and the direction involves aspects like the administration mechanism for oil and gas mining right, the administration about energy transmission channel, and natural gas and power tariff, etc. And the reformation on energy regulatory system shall be moved forward at the same time.

Oil & Gas Data Analysis

  World Crude Oil Price Table
 
 

   Major energy commodity price(8.25-8.29) (Unit: Yuan)

New Energy

New Energy News Review

The Bloomberg New Energies Finance believes that, compare with the first half year of 2013 and 2014, the price for photovoltaic products in the second half of this year shall be more stable, and the situations where supply falls behind demand from 2006 to 2008 will not be likely to happen.  And currently the production capacity for assemblies and batteries in market is sufficient, with the only bottleneck lies in multiplex-crystal silicon.

The Shanxi Energy Regulatory Office recently announced the bulletin about the photovoltaic generations in Shanxi in 2014. As of June 30, the total size of interconnected photovoltaic generating projects is 358.7 MW, in which, photovoltaic generating stations 275 MW, and distributed photovoltaic generating projects 83.7 MW.

The latest report from the American research institute, the Lux Research, i.e.《The Updates of the Solar Energy Market Scale in 2014: The Reform in the Long Run》predicts that the global solar energy installed capacity shall increase to 65.6 GWp by 2019 from the 37.5 GWp in 2013, and the compound annual growth rate CAGR shall be 8.3%.

National Development and Reform Commission announced recently the《Catalogue for the Industries Encouraged for the West Regions》, and multiple electric power energy and the industries on energy-saving and environmental protection are in the catalogue, and among which, the industries relating to solar energy power generation are the focus, and eight of the twelve west part provinces, autonomous regions and municipalities have clearly indicated to develop high-efficient solar energy battery research and the inspection, construction and operation of solar energy power generation.

National Energy Administration shall urge off-shore wind power development and construction.  The 《Nationwide Off-Shore Wind Power Development and Construction Plan（2014-2016）》announced recently involves 44 off-shore wind power projects with installed capacity of 10GW total. National Energy Administration shall, together with NDRC, facilitate the growth of the industries in next step. If the installed capacity shall far exceed what are being anticipated by the people in the industry if completed,

State Council Premier Li Keiang presided the executive conference of the State Council on August 27th.  It was stressed in the conference to facilitate the engineering and construction for a group of key projects that overcome shortcomings. It was decided in the conference that three large projects would be facilitated in this year and next year, including greatly develop clean energy, commence construction for a group of wind power, hydro-power, photovoltaic power and nuclear power in coastal areas.

New Energy Data Analysis

Product	High	Low	Average	Change
Polysilicon	22.50	19.00	20.251	0%
Polysilicon(156mm x 156mm)	1.03	0.80	0.887	-1.33%
Monocrystalline silicon (156mm x 156mm)	1.40	1.10	1.163	0%
Battery	0.48	0.29	0.309	-1.28%
Polysilicon battery (156mm x 156mm)	1.65	1.38	1.535	0%
Monocrystalline silicon battery (156mm x 156mm)	2.10	1.69	1.780	0%
Silicon Components	0.80	0.52	0.563	-1.4%
Thin-film PV modules	0.80	0.60	0.707	0%
Concentrator photovoltaic modules	2.55	2.09	2.303	0%
PV inverter	0.25	0.10	0.182	0%

 

  International Solar Price (Unit: USD)