Energy Finance

Energy Finance News Review

The central bank, together with other ten ministries jointly announced the <<Guiding Opinions on Promoting Healthy Development of Internet Finance>> most recently and, the <<Opinions>> for the first time provides clear definition over internet finance and categorizes and defines monitoring responsibilities over internet finance.

The politburo of the Chinese Communist Party Central Committee convened conference on July 20th, deciding to hold the 5th plenary session of the 18th Central Committee of the Chinese Communist Party in October in Beijing. And the main agenda shall be that the Politburo of the Chinese Communist Party Central Committee reports to the central committee, study the suggestions over formulation of the 13th Five-Year Plan of national economy and social development.

Most recently, Securities Association of China announced the business operation data of the 125 security traders in the first half of 2015, and the unaudited financial statements of the securities traders show that the traders achieved 330.0508 billion Yuan business revenue in the first half of the year and realized 153.196 billion Yuan net profits, with 120 traders achieved profits.

On July 21st, Ministry of Finance announced data according to which, the profit total achieved by state-owned enterprises in the first half of the year was 12332.9 trillion Yuan, fell by 0.1% compared with that of the same time period of last year with falling magnitude narrowed and, the economical operations of the state-owned enterprises continued to look good with major indexes showing warm-up sign. And what deserves noted is that coal and steel industries have turned loss into profit.

The US <<Fortune>> magazine announced in the evening of the 22nd Beijing time the top 500 enterprises in the world in 2015, and the Chinese enterprises named in the roster continues to show strong growth trends, reaching 106 enterprises, with 6 enterprises more over that of previous year and ranked comfortably the second in terms of the number of the enterprises on the roster in the world. Among the top ten enterprises on the roster, three are Chinese enterprises, paced that of previous year, and among the three the position of SinoPec rose further, ranking the second, and China Oil and State Grid remain to be the 4th and 7th.

Energy Finance Data Analysis
China5e • Energy Index is a vane of China energy industry development condition, it includes Energy Composite Index, Oil & Gas Index, Power Index, Coal Index and New Energy Index.


 

 

	20- July	21- July	22- July	23- July	24- July
Energy Composite Index	1628.77	1614.78	1630.43	1648.62	1642.90
Oil & Gas Index	1630.70	1606.57	1623.11	1630.80	1632.71
Coal Index	1019.79	1024.14	1035.21	1054.99	1055.40
Power Index	2248.86	2244.91	2267.17	2291.13	2263.36
New Energy Index	3093.90	3108.23	3115.70	3271.07	3178.11

  Energy Index of A Week

 

	20- July	21- July	22- July	23- July	24- July
Shanghai Composite Index	3992.11	4017.68	4026.05	4123.92	4070.91
Shenzhen Composite Index	13202.40	13315.56	13416.54	13754.53	13518.52
RMB Exchange Rate ($)	6.1197	6.1199	6.1168	6.1172	6.1169

  Shanghai and Shenzhen Composite Index of A Week

Coal & Power

Coal & Power News Review

In the first half of the year, the demands for domestic coal industry remained weak, resulted slipping in coal sales and slumping in coal price, and significantly pushed up the percentage of the enterprises suffered from losses and, getting rid of poverty has become the main tune for coal industry in the first half of the year.

The express reports from the coal transportation and sales association shows that the cumulative total output of countrywide coal production in the first half of the year was 1.725 billion tons, reduced by 138 million tons compared with that of the same time period of last year, fell by 7.4% and, in which, the cumulative output finished by key state-owned coal mines was 911 million tons, reduced by 87.70 million tons compared with that of the same time period of last year, fell by 8.8%. And in the first half of the year, the countrywide cumulative sales was 1.622 billion tons, reduced by 142 million tons compared with that of the same time period of last year, fell by 8.1% and, in which, the sales achieved by key coal mines was 788 million tons on cumulative basis, reduced by 130 million tons compared with that of the same time period of last year, fell by 14.2%.

Though state government has issued policies frequently aiming at saving market in the first half of the year, and though local governments have also formulated relevant measures in reducing burdens upon enterprises and in promoting stable operation of the industry, the dilemma faced by coal industry has not been solved, and the falling pace of coal price has not been stopped.

Under the background where supply exceeds demands in coal market, the key influencing factor that determines coal price is demands. Currently, the growth pace of the four large sub-industries in downstream of coal has slowed down apparently, and the demands in near future can hardly be changed significantly. The obvious slowdown in power consumption means that coal, as a main energy consumables in China can hardly be changed positively. And in the meantime, environmental protection is posing certain pressure over coal demands. The rapid development of clean energy like hydro-power, nuclear power, wind power, and ultra super-high voltage power transmission has inhibited demands for the coal used for power generation and has inhibited the rebounding of coal price. The demands in near future shall accelerate retiring of backward production capacity, control coal output and, only in this way can balance of supply and demand be achieved for coal market and coal price be stabilized.



Coal & Power Data Analysis
   

Heat Port	5800K	5500K	5000K	4500K
秦皇岛Qinhuangdao	465-475	410-420	355-365	325-335
黄骅Huanghua	480-490	430-440	360-370	330-340
天津Tianjin	465-475	410-420	355-365	320-330
曹妃甸Caofeidian	465-475	405-415	355-365	330-340
国投京唐港 SDIC Jingtang	465-475	405-415	360-370	330-340
京唐港Jingtang	460-470	405-415	355-365	315-325

                 Bohai Thermal Coal Price Index (BSPI) (Unit: yuan / ton).
                 Published：July 22, 2015

Oil & Gas

Oil & Gas News Review

Data shows that the oil export scale in Saudi Arabia in May fell down to 6.94 million barrels/day, reduced significantly compared with that of April, which was 7.74 million barrels, the lowest in the past 12 months. Analysis points out that this is because the refineries in Saudi Arabia consumed too much oil supply, while some refineries in China shutdown in the month for maintenance purpose.

Due to the market worry over the situation that supply exceeds demand shall deteriorates as a result of the agreement on Iran Nuclear Negotiations, international oil price has kept on falling recently. And the US crude oil future price has fallen down to the lowest point of the three months, while domestic oil price has also faced large magnitude downward adjustment in retail sales price for gasoline and diesel.

Data shows that the Chinese imports of Iranian crude oil in June increased by 26.5% compared with that of the same time period of previous year, reaching 2.76 million tons, equivalent to have imported 671.80 thousand barrels per day. The Chinese import of Iranian crude oil in the first half of the year fell by 6.1% compared with that of the same time period of last year, down to 14.61 million tons, equivalent to 589.40 thousand barrels per day by average.

Yang Dongliang, Chief of State Administration of Safety Supervision stressed in the safe production dispatch conference held on the 20th that it is needed to deeply draw the lesson from the explosion incident caused by liquefied hydrocarbon storage tank leakage in Shandong Ri Zhao city on July 16th and immediately conduct specific item check in oil and gas storage tank zones countrywide to prevent the incident in oil and gas storage tank zones from happening again.

The spokesperson from Conoco-Philips China expressed recently that the company, for the time being, has no shale gas project under exploration. And since the slump of oil price last year, companies like Shell and Chevoron have also been reported for being impeded in doing shale gas project in China, and domestic private businesses are having strong desire to watch when it comes to shale gas exploration.

Most recently, Ministry of Commerce announced the <<Notice on Applying for Non-State-Owned Trading Import Qualification by Crude Oil Processing Enterprise>>. The <<Notice>> defines that nine qualifications are required to apply for importing crude oil by non-state-owned trading import enterprise.



Oil & Gas Data Analysis
Date WTI Brent OPEC

Date	WTI	Brent	OPEC
2015-7-20	50.15	56.65	53.79
2015-7-21	50.36	57.04	53.57
2015-7-22	49.19	56.00	53.45
2015-7-23	48.45	55.27	53.04
2015-7-24	48.14	54.62	52.08

 

 

 


Commodity Original price of the beginning of the week (Yuan) Price at the end of the week (Yuan) Change

Commodity	Original price of the beginning of the week (Yuan)	Price at the end of the week (Yuan)	Change
LPG	3789.12	3693.82	-2.52%
ULP	7089.21	6872.71	-3.05%
M15	6070.00	5890.00	-2.97%
Diesel Fuel	5525.88	5412.35	-2.05%
fuel oil	2980.00	2960.00	-0.67%
LNG	3926.92	3923.08	-0.10%

                         Major energy commodity price(7.20-7.24) (Unit: Yuan)




New Energy

New Energy News Review

With rapid increase of photovoltaic installation capacity in China, photovoltaic is having the same bad fate as wind power does and, in some provinces sunlight has been abandoned and power generated by solar power has been limited, and majority business owners and developers have to pay attention to this issue.

Currently, with statistics and phone call consultation over the information about 238 projects in China, it is found that during the time period starting from July 2014 to May 2015, the photovoltaic power stations in 8 provinces like Gansu, Inner Mongolia, Xinjiang, Qinghai, Ningxia, Tibet, Yunnan, and Shaanxi have been facing the issue where sunlight has been abandoned and power has been limited, with sunlight abandon rate reaching 14% countrywide by average, and in Gansu the sunlight abandoning rate is as high as 40.2%. 

Although the reason behind the sunlight abandon varies, the core reason lies to weak local consuming ability, backward power grid construction, limited outgoing power transmission passage, etc. which has resulted sunlight abandon and power limitation in various degree in the eight provinces.

And Gansu province is the place where sunlight abandon and power limitation is most serious, with sunlight abandon rate reaching as high as 40.2% and, the situations in Jinchang city and Wuwei city is most serious; Gansu has long been the region seriously stricken by power limitation in China, and the main reason is that the province is unable to take and consume the ever-increasing photovoltaic power generations, as a result of limited sending out passage for power capacity, and so the situation where power gets limited won`t be improved significantly.

The sunlight abandon rate in Xinjiang is 7.8%, while the rate in Xinjiang Corps is 8.1%, which is mainly caused by insufficient local consumption ability, while sending-out passage is under construction.

By comparison, sunlight abandon and power limitation in Inner Mongolia have been improved, with sunlight abandon rate being 1.10%. And this is because the power limitation in Inner Mongolia is mainly concentrated in February and March 2015 and, since grid load during Spring Festival was not big and, as required by grid, part of sunlight got abandoned and, other than that, there was no power limitation in whole region.

The sunlight abandon rate in Ningxia region is 1.10%, in Qinghai region is 1.17%, in Shaanxi province is 0.7% in Yunnan province is 3.7%, and in Tibet is 2.4%.

New Energy Data Analysis

 

Product	High	Low	Average	Change
Polysilicon	20.00	14.50	16.100	0%
Polysilicon(156mm x 156mm)	0.85	0.80	0.825	0%
Monocrystalline silicon (156mm x 156mm)	1.12	0.95	0.965	0%
Battery	0.37	0.34	0.350	0%
Silicon Components	0.67	0.52	0.538	0%

 

               International Solar Price (Unit: USD)