CCI Daily

Issue 2808 Nov 20, 2024

An Indispensable Insight into the Chinese Coal Market

China's import thermal coal prices likely

decline; coking coal market struggles
■ Traders warn of a possible retreat in China's import thermal coal prices amid abated utility tendering enthusiasm
■ The seaborne import market is inactive this week as power plants with high inventories show no urgency to restock
■ Spot prices for some coking coal grades show signs of bottoming out but overall demand remains unsatisfactory

@2024, Sxcoal. All rights reserved.

CCI Daily | Issue 2808 Nov 20, 2024

Abated demand from China hints at possible thermal China.

coal price corrections At major northern transfer ports in northern China,
sellers reported persisting pressure to offload stocks due
Traders warned of a possible retreat in China's to thick wait-and-see sentiment among buyers and lower
seaborne import thermal coal prices, which have stayed so indicative buying levels.
far resilient this week, as elevated bidding prices and
consecutive drops in domestic prices crippled utilities' One trader source lowered his offer for 5,000 Kcal/kg
tendering enthusiasm. NAR coal with 1% sulfur to 5 yuan/t below the CCI index,
only to see buying interest drift lower further to 10 yuan/t
While there were still several tenders seeking below the index.
January-laycan cargoes, the awarded cargoes continued to
decline and tended to focus on supplies with lower Participants still expected prices to dip later this week,
calorific value. Several other major utilities have citing elevated portside inventories, which are now at the
suspended floating tenders for around a week, Sxcoal highest levels since mid-December last year.
understood.
China's coking coal prices show signs of bottoming out
Traders' bidding prices to domestic utility tenders for
imported thermal coal hovered at high levels after the Spot prices for some coking coal grades showed signs
weakened yuan lifted their import cost. On November 19, of bottoming out in China's main production areas in the
one state-owned utility received bids for 3,800 Kcal/kg middle of this week, with coking plants raising purchases
NAR coal delivering in January at prices ranged 508-541 of cost-effective coal grades and online transactions
yuan/t CFR China with VAT, with the lowest price netting improving slightly.
back to about $54.8/t FOB East Kalimantan. With the continuous consumption of existing stocks at
However, instead of awarding cargoes for the coking plants and the approaching winter restocking
traditionally sought-after grade, the utility bought three period, some coke producers started to make moderate
cargoes of 3,400 Kcal/kg NAR at prices between 452-455.5 procurements of premium coal grades, particularly those
yuan/t and one cargo of 3,200 Kcal/kg NAR coal at 418 whose prices had declined to attractive levels, according
yuan/t, translating to roughly $48/t and $43.8 FOB to sources.
respectively on a Panamax basis. Prices of certain coking coal grades at a few mines
This may be because importing lower-CV coal grades have hit intra-year new lows, Sxcoal understood, and this
could gain margins, while other grades were even harder led to a moderate pickup in new orders and somewhat
to make a profit from in the current status quo, one eased pressure to get rid of high stocks.
source noted. On November 20, one auction for 8,000 tonnes of
The seaborne import market was inactive this week as lean coal (S 2.65%, A10.61%, GRI 67) issued by a
power plants with high inventory levels showed no Luliang-based miner in Shanxi fully settled at 1,021-1,022
urgency to restock. Meanwhile, both the miner and yuan/t with the starting price of 1,020 yuan/t. In the
demand sides are firmly holding to their pricing ideas as previous trade, the miner closed the deal for the same
negotiations for long-term contracts reach a critical stage, coal grade at 1,021 yuan/t from the same starting level on
according to trader sources. November 14.
Data showed coal stocks held by power plants in In Changzhi of Shanxi, a total 20,000 tonnes of lean
coastal provinces on November 18 stayed roughly coal (S 0.5%, A 8%, GRI 65) were put for sale at 1,550
unchanged compared with the week-ago and month-ago yuan/t on November 19, down 30 yuan/t week on week,
levels, enough to cover up to 18.7 days of usage. Coal but all the cargo was concluded at 1,600-1,605 yuan/t,
consumption of these plants only marginally rebounded 5-10 yuan/t higher than a week ago, Sxcoal learned from a
by 0.3% week on week yet still 1.3% lower compared with local source.
the month-ago level. However, it is still noteworthy that most coke and
"Offers for Indonesian 3,400 Kcal/kg NAR coal steel firms continued to buy coking coal only for essential
remained firm at $43.50/t FOB Kalimantan, with no signs needs and have not yet begun their peak winter
of price cuts from mines," said one source with a restocking considering potential downside risks. Some
Shandong-based power group. participants expected further coke price cuts in the
following weeks, capping their buying strength.
The Panamax cargo of Indonesian 3,800 Kcal/kg NAR
coal was offered at $55-56/t FOB, temporarily stable, but "Coking plants have yet to replenish coal stocks for a
buying indications were about $0.5-1/t lower. While an large amount, just buying some low-priced coal grades,"
offer of Supramax cargo of same-CV coal was heard at said one source with a Shanxi-based coke company.
$54/t for December-loading laycan, a bid came in at $53/t, A coal miner from Shandong noted modest dispatches
Sxcoal understood from trader sources. recently, with no signs of restocking more at coking plants
"The seaborne market remains in a standoff this in the region.
week, but may decline next week to align with China's One large miner in Hejin, Yuncheng of Shanxi adjusted
domestic market trend, due to a lack of serious down prices of low-sulfur washed lean coal (S 0.5%, A
purchases," said a Guangdong-based trader in southern 10%, GRI 60) by 30 yuan/t to 1,380 yuan/t, ex-washpant

@2024, Sxcoal. All rights reserved. 2

CCI Daily | Issue 2808 Nov 20, 2024

with VAT and on banker's draft, effective November 20. Shanxi Province introduced the online auction for the first
This took the total decrease for the coal grade to 210 time to trade coal exploration rights. The concentrated
yuan/t in November. The miner also cut lean raw coal (S release of coal resources, following a prolonged pause in
0.5%, A 7%) prices by 20 yuan/t to 965 yuan/t. approving new mining blocks, has sparked a competitive
Coking coal miners in Xiangning, Linfen of Shanxi, bidding frenzy among local coal companies.
lowered prices of low-sulfur lean coal (S 0.5%, A 10%, GRI The stricter requirement for advanced mining capacity
70) to 1,470 yuan/t on bankers' draft, and 1,460 yuan/t in and mine construction also pushed some miners to
cash, both on ex-washplant basis with VAT, starting from transfer what they had.
November 19. On November 5, China Pingmei Shenma announced
Traders and washing plants prioritized accelerating that the company has won the exploration right of the
sales and suspended purchases, adding to pressure on Tiechanggou No.1 coal mine in Xinjiang for approximately
coal deliveries from coking plants. 1.75 billion yuan.
On November 20, the CCI index for Shanxi low-sulfur On November 8, Huaibei Mining also announced their
primary coking coal fell 12 yuan/t day on day to 1,557 plan of obtaining new coal resources in the market to
yuan/t, ex-washplant with VAT, while that for mid- and build up reserves and development momentum.
high-sulfur primary coking coal stood at 1,450 yuan/t and Xinjiang Mingxin Oil and Gas Exploration and
1,423 yuan/t, respectively, both unchanged. Development, one branch of Xinjiang Xintai Natural Gas,
In addition, the Heze city government in Shandong won the tender of No. 7 exploration area of Santanghu
has issued a directive mandating the immediate shutdown mining area in Xinjiang, at a cost of 3.52 billion yuan.
of coking units of two local companies, each with a Ningxia, Gansu and other provinces, with relatively
production capacity of 1.2 million tonnes per annum low coal resources, also used the same method to quicken
(Mtpa). the release of coal production capacity.
If the shutdowns proceed as planned, 190,000 tonnes Policy changes can optimize the market-oriented
of coke production estimated will be affected by year-end. allocation of coal resources, increase the economic value
This is likely to tighten regional supply and shore up the of these resources and avoid the inefficient operation and
market to a certain degree. Shandong has 27 coking plants losses.
with a total production capacity of 43.15 Mtpa.
On the other hand, mining right trades can improve
Chinese firms vie for coal exploration rights amid the overall resource reserves and supply reserve capacity
of the coal market, conducive to cope with sudden supply
favorable policy changes shortfalls and ensure smooth operation of the market.
China's coal mining firms intensified efforts to acquire In addition, despite high-than-expected premiums of
new coal exploration rights this year, as the country right trades, these blocks still have considerable profit
gradually loosened its control over such rights, aiming to margins compared to spot prices, the direct reason why
boost effective supply and maintain stable coal prices. coal companies are competing.
On November 14, Shanxi Xinzhou Shenda Energy The auction price of coal exploration rights in Shanxi
Group obtained the Huashuta block in Baode county for averaged 17.2 yuan/t so far this year, according to a
16 billion yuan ($2.2 billion), far exceeding the starting bid research note by Guosheng Securities.
of just 10 million yuan.
Combined with the ratio of reserves and the latest
And on October 23, Shanxi Coking Coal Energy spot prices, the value of per tonne of coal is far lower than
announced a deal for the purchase of the Xingxian block in the current auction price in the primary market.
Luliang city for 24.705 billion yuan, which even exceeded
the firm's revenue of 21.57 billion yuan during the first SW China's Guizhou advances coal storage and
half of 2024. distribution base construction
Not only Shanxi coal miners participated this coal
Southwestern China's Guizhou province is making
acquisition frenzy, a wider range of miners from provinces
significant strides in constructing coal storage and
like Inner Mongolia, Xinjiang and Shaanxi also did so.
distribution bases, aiming to position itself as a key coal
Besides new mines, the transactions over existing coal supply center in the southwestern region.
resources have also increased.
Guizhou, known as the "Coal Sea of South China",
Many coal firms, including Shanxi Lu'an Environmental boasts approximately 80 billion tonnes of coal reserves,
Energy Development, Shanxi Coking Coal Energy, Shanxi ranking fifth nationally. The province aims to leverage
Coal International Energy, Lanhua Sci-Tech Venture, these resources to improve energy security and foster
Yongtai Energy and Shanxi Meijin Energy, have took part in industrial growth.
the race to acquire new coal resources.
One exemplary project is the 2 million-tonne coal
Changes in policies are the main cause for more storage and distribution base in Zhijin county, Bijie city.
frequent transactions over coal exploration rights this The Phase I project, which has already commenced
year. operations, includes a 0.3 million-tonne coal reserve yard,
In 2024, the Department of Natural Resources of a dedicated rail line, and a rapid loading system capable of

@2024, Sxcoal. All rights reserved. 3

CCI Daily | Issue 2808 Nov 20, 2024

handling 3,600 tonnes of coal per hour. This infrastructure coal supply tensions in Xingren city and surrounding areas,
supplies coal from nearly 50 surrounding mines to laying a solid foundation for the
multiple power plants in the region. "coal-power-grid-aluminum" circular economy industrial
The Zhijin coal storage and distribution base not only chain.
handles coal storage, blending and transportation, but On April 12, 2024, the National Development and
also includes coal processing, washing and trading. It even Reform Commission and the National Energy
provides a financing platform for coal mining enterprises. Administration released a document calling for the
The Zhijin coal storage (trading) project, part of the establishment of a preliminary coal capacity reserve
southwestern region's key coal supply hub initiatives, will system by 2027, including the approval and construction
be constructed in three phases. By establishing a regional of several backup coal mines to achieve a certain level of
coal trading center, the largest digital coal blending center dispatchable capacity reserves. The document emphasizes
in the region, and a financial service center for coal reaching a dispatchable capacity reserve of 300 Mtpa by
trading, the project will facilitate both online and offline 2030.
coal transactions to meet coal demand in Guizhou and Buoyed by favorable national policies, Guizhou
neighboring provinces. continues to accelerate the construction of coal storage
This initiative aligns with the State Council's and distribution hubs, striving to become the new
requirements raised in 2022, which call for establishing landmark for energy security in southwestern China.
large coal storage and distribution bases in Bijie,
Liupanshui, and Qianxinan to create a coal supply hub in Int'l thermal coal prices mixed amid multiple factors
southwestern China. These bases target to address International low-CV thermal coal prices increased
regional imbalances in coal supply and demand, coal grade last week due to rainfall-disrupted coal supply in Indonesia
structure, and seasonal fluctuations. and rising import costs in China. High-CV thermal coal
Coal storage and distribution bases act as "reservoirs" prices faced pressure from reduced disruption in
and "regulators", playing a crucial role in ensuring energy Colombian coal supply and inactive purchases.
supply security. Strategically locating these bases and Supply Side
conducting scientific and dynamic management could help Indonesia Indonesian miners maintained firm thermal
meet emergency coal demands if natural disasters or coal prices despite tightened supply, while Chinese buyers
other unexpected events occur, as well as tackle periodic adopted a cautious stance due to the weakened yuan
imbalances in coal demand, thereby boosting regional against the US dollar. As of late last week, Indonesian
energy security. They also help to overcome Panamax 3,800 Kcal/kg NAR coal was offered at $55.5/t
transportation bottlenecks in production areas and meet FOB, and the same-CV grade for Supramax cargo was
regular coal needs in regions with poor resources, offered at over $53/t.
broadening their market reach.
On November 15, the CCI index for Indonesian 3,800
Several other coal storage projects, each with a Kcal/kg NAR coal stood at $52.6/t FOB, up $0.2/t from the
storage capacity exceeding 1 million tonnes per annum week-ago level yet down $0.9/t from the previous month;
(Mtpa), are under rapid construction in coal-rich areas like the CCI Import 4700 index stood at $76.8/t FOB, up $0.1/t
Bijie and Liupanshui, marking a significant leap in the on the week but down $1/t month on month.
high-quality development of Guizhou's coal industry.
Entering the rainy season since the start of November,
Upon completion, the Bijie coal storage and coal production was partly disrupted in Kalimantan.
distribution base will have a dynamic storage capacity of 8 Despite the pretty low possibility of banning coal exports,
Mtpa and a throughput capacity of 25 Mtpa. The project the Indonesian government is considering extending the
will integrate online and offline operations, building a period for holding coal export sales revenue and other
modern coal trading system that balances coal supply and domestic financial institutions' mineral products income,
demand dynamically. which is currently set at 3 months.
Additionally, in Liupanshui's Shuicheng district, a coal Approaching the year-end, some Indonesian miners
storage and distribution base project, expected to come have exhausted their annual production quotas outlined in
online by June 2025, will boast a static storage capacity of their work plans and budgets (RKABs) submitted to the
1.2 Mtpa and a handling capacity exceeding 5 Mtpa. This government, resulting in minimal sales pressure. The
will stimulate the development of industries such as coal ongoing negotiation on long-term contract coal prices also
mining and processing, logistics, equipment drove miners to resist cutting spot offers.
manufacturing, trading, settlement, and finance,
becoming a critical milestone in Shuicheng's energy The slow recovery of Indian buyer demand after the
transformation. Diwali Festival provided limited support to the Indonesian
market.
The Xingren coal reserve center, located in the heart
Russia Russian thermal coal prices ticked up slightly
of the Xingren mine, plans to achieve a static storage
thanks to better demand from major buyers and expected
capacity of 0.5 Mtpa, a dynamic reserve of 3 Mtpa, and a
coal washing of 1.2 Mtpa. Scheduled for completion by supply strain. Some participants said port authorities
reduced planned coal shipments considering the potential
May 2025, this project will significantly alleviate thermal
freezing problem at major export ports, which in part

@2024, Sxcoal. All rights reserved. 4

CCI Daily | Issue 2808 Nov 20, 2024

shored up Russian coal prices in the seaborne market.

On November 15, Sxcoal assessed Russian 5,000
Kcal/kg NAR thermal coal at $85.5/t FOB Far East ports, up
$1/t from a week ago and $0.5/t month on month;
Russian 5,500 Kcal/kg NAR coal was assessed at $95.5/t,
also up $1/t week on week and $0.5/t from a month
earlier.
Australia Australian high-CV thermal coal prices
decreased last week. As of November 15, Newcastle 6,000
Kcal/kg NAR thermal coal was at $141/t, down $2.3/t from
the previous week and $7.8/t month on month.
Australian high-CV coal prices were hit by reduced
demand in the Asia-Pacific region and increased
competition from Colombian coal. Colombian cargo supply
climbed up as the closure of the Cerrejon coal transport Coastal power plants maintained on-demand
railway, which connects local coal mines and the purchases of imported thermal coal. Traders' bidding
Bolivarian export terminal in Puerto Rico, ended. levels to utility tenders increased earlier last week as
import costs rose as a result of the falling RMB exchange
South Africa South African high-CV thermal coal
rate against the US dollar, firm offers by Indonesian
prices trended downward last week on the impact of
miners and minor changes in freight rates.
negative dynamics. As of November 15, the Richards Bay
Coal Terminal (RBCT) thermal coal was priced at $109/t Since the middle of the week, some importers were
FOB, down $1/t week on week and $7.6/t lower than the keen to undersell cargoes as domestic thermal coal prices
previous month. declined, leading to lower bidding prices to import coal
tenders. Traders, however, remained in losses of selling
Major border ports for shipments to Mozambique
cargo to power plants due to higher import costs of
were reopened following a period of closure due to
510-515 yuan/t.
Mozambique's unrest. South African authorities have been
focusing on fixing the problem of traffic jams extending 20 IndiaWith the slowdown of overall power generation
kilometers. and increased clean power, alongside growing domestic
production, India's thermal coal imports recorded the
However, port officials warned that the unrest could
largest decline rate in 15 months.
resume in the coming days, putting South African coal
exports through Maputo at risk, particularly those carried India imported 12.51 million tonnes of thermal coal in
by road. Port operator Grindrod had to declare a force October, down 33.92% year on year, marking the first
majeure on all shipments last week. consecutive decline since July 2023, according to Kpler's
cargo-tracking data.
Demand for spot South African coal with February
laycan stayed sluggish in the seaborne market, partly due Data from the Ministry of Coal showed that coal
to uncertainties in the export volume via Mozambique and production from India's captive and commercial mines
tepid appetite from India. reached 100 million tonnes in the current fiscal through
November 8 (starting from April 2024), up 33% year on
Demand Side
year and achieving the 100-million-tonne goal 100 days
China Import costs of thermal coal increased further earlier than the previous fiscal.
in China, owing to the depreciated Chinese yuan against
Participants anticipated India's import coal demand to
the US dollar and upticks in international freight rates. As
increase in the coming weeks, but the growth could be
of late last week, the awarded price of 3,800 Kcal/kg NAR
constrained in the remaining two months because of high
coal was around 502-535 yuan/t, CFR with VAT.
stocks at Indian ports. The whole-year import is expected
On November 15, Sxcoal assessed 3,800 Kcal/kg NAR to be lower than the 2023 level.
coal at $62.6/t CFR South China, up $0.7/t from the
Europe European thermal coal prices strengthened to
week-ago level; the 4,700 Kcal/kg NAR coal was assessed
over $120/t last week, supported by higher consumption,
at $84.6/t, up $0.6/t from a week earlier; 5,500 Kcal/kg
colder weather and rising gas and electricity prices.
NAR coal was assessed at $103.4/t, down $0.2/t week on
Moreover, coal generation margins surged to 54.35
week.
euro/MWh in Europe, while they were in a negative zone
a week ago.
Following a request from France's power grid
operator RTE, the 600-MW Emile Huchet coal-fired power
plant, which was shut down in 2022, has been restarted.
This plant is predicted to be used during peak load hours.
As of November 15, gas futures for December delivery
at the European benchmark TTF hub were closed at
46.551 euro/MWh, rising 9.77% from a week earlier.

@2024, Sxcoal. All rights reserved. 5

CCI Daily | Issue 2808 Nov 20, 2024

China's Ganqimaodu imports 35.22 Mt of coal as of and the production of silicon with a low content of iron
oxide and aluminum oxide. According to Nemykin, this
Nov 18
premium-grade coal is rare in Russia.
Ganqimaodu border crossing, China's largest inland
road port for coal imports from Mongolia, handled 36.54 Mongolia Oct rail coal shipments up 9.6% MoM
million tonnes of cargo as of November 18, including Mongolia's railway-carried coal shipments were
35.22 million tonnes of imported coal. registered at 1.92 million tonnes in October 2024, up
This achieved 88% of the port's coal import target of 9.57% from the previous month, showed data from the
40 million tonnes. National Statistical Office of Mongolia.
As of November 18, 24.31 million tonnes of coal were
auctioned on the Mongolian Stock Exchange this year,
while 21.16 million tonnes were sold, according to data
compiled by Sxcoal.
Among the successful trades, 98% of cargoes were
delivered to Ganqimaodu port.

Coal stocks of China's power plants remain above 200

Mt
Coal inventories at Chinese power generators
remained above 200 million tonnes, enough for 30 days'
consumption on average, said the country's top economic
planner on November 19.
China's National Development and Reform The shipments surged 73.1% compared with the
Commission (NDRC) expected stable energy supply this year-ago level.
heating season after efforts made in supply guarantee
during peak hours, fulfillment of mid- and long-term Iron ore shipments via railway stood at 1.14 million
energy supply contracts and emergency for extreme tonnes in the same month, up 7.18% year on year yet
weather. down 0.34% from September.
The nationwide power generating capacity has Mongolian railways' coal shipments amounted
reached 3.16 TW, providing a solid foundation for house to16.77 million tonnes in the first ten months this year,
heating. soaring 57.39% year over year, while iron ore shipments
totaled 11.38 million tonnes, growing 41.53% from the
Meanwhile, all underground natural gas storage year-ago level.
facilities have been replenished before cold months.
Australia's New Hope Aug-Oct raw coal output jumps
Transport firm seeks bankruptcy for Inskaya mine in
65.1% on yr
Russia
Australian miner New Hope Corp. reported its raw
UK SLK LLC, a rail freight transport company, has coal production reached 4.04 million tonnes over
announced its intent to file a bankruptcy petition against August-October, jumping 65.1% year on year and 19.9%
Inskaya mine in the Kemerovo region (Kuzbass) of Russia, from a quarter earlier, according its quarterly financial
due to unpaid wages for miners and outstanding debts, results released on November 18.
Interfax reported.
The company produced 3.01 million tonnes of raw
The management company faced difficulties in coal from the Bengalla coal mine in
attracting financing from external investors, so production
at the mine likely will be halted, according to Metals & New South Wales (NSW) during the given period,
Mining Intelligence (MMI). 36.3% higher than the last year and 24.1% higher than the
prior quarter, and produced 1.03 million tonnes of raw
Inskaya has been grappling with significant wage coal in Queensland coal mine, rocketing 330% year on
arrears. From November 2023 to July 2024, 382 year and 9.1% quarter on quarter.
employees were owed over 65 million rubles in unpaid
wages. Denis Nemykin, the mine's general director and Commercial coal production totaled 2.72 million
majority shareholder, initially promised to settle the debts tonnes, increasing 32.8% from the same period last year
by October 28 and then November 4, but failed to do so. and 8.7% from the preceding quarter, including 2.24
million and 479,000 tonnes of coal production in NSW and
The latest report showed that the Central District Queensland respectively.
Court of Kemerovo has granted the investigators' motion
to arrest the general director of Inskaya mine. Meanwhile, the company sold 2.77 million tonnes of
coal, up 52% from a year ago and 8.1% on the quarter.
Inskaya produces premium, low-ash grade D coal,
particularly valued for its low fluorine and phosphorus Specifically, the company sold 2.41 million tonnes of
content, making it ideal for semi-coking, ferroalloy plants, coal in NSW, up 32.3% year on year and 21.1% on quarter,

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CCI Daily | Issue 2808 Nov 20, 2024

while it sold 358,000 tonnes in Queensland, dropping technology among the country's 18 railway groups.
37.3% than the quarter prior. Jining of Shandong serves as an essential hub along
The company is estimated to produce 150-170 million the Beijing-Hangzhou Grand Canal, boasting the longest
tonnes of raw coal over August 2024 to July 2025, actually navigable distance and the highest capacity. The canal,
increasing 32% compared to the last fiscal year. combined with Wari railway and the Houri Corridor (which
The company's earnings before interest, taxes, includes the Houyue, Taijiao, Xinjiao, and Xinyan lines),
depreciation and amortization (EBITDA) were $304.6 forms a critical transport network for shipping coal from
million over August-October, rising 40.8% from the Shanxi to the east and from north to the south.
quarter prior due to the increase of raw coal output and The conference highlighted the goal of transporting
sales price. bulk commodities such as coal, coke, and steel from
The sales price of coal averaged $192.4/t, 6.3% higher Shanxi to Jining via rail, and then distributing them
than $181/t last quarter. through inland ports to the Grand Canal and the Yangtze
River Economic Belt. This system will also enable the
Russia plans to bolster coal supplies to China, says return transport of bulk commodities like iron ore from
Novak downstream regions back to Shanxi.
In recent years, Jining has capitalized on the elevation
Russia is ready to beef up its coal exports to China
of inland waterway transport to a provincial strategic
since the potential has not been exhausted, Tass reported,
priority, aiming to transform it into a leading inland
citing Russian Deputy Prime Minister Alexander Novak at
waterway hub in northern China.
the Sino-Russian cooperation forum.
Jining port, one of the 36 major inland ports in China,
Russia had supplied approximately 100 million tonnes
has 47 planned waterways totaling 1,109 kilometers.
of coal to China last year, Novak said, adding that they are
Jining leads the 13 cities along the Beijing-Hangzhou
prepared to further increase supply volumes via rail, sea
Grand Canal in terms of main channel length and shipping
transport, as well as through border crossings and
capacity.
seaports.
From January to October, the port's cargo throughput
He also remarked coal will continue to be a key
reached 82.0 million tonnes, up 41.7% year on year, and
energy resource for supporting the needs of growing
container throughput totaled 342,000 TEUs, a 109.8%
economies for a long time despite the entire climate
surge.
agenda.
Shipments to Liangshan port via railways under the CR
In the first ten months of this year, seaborne coal
Taiyuan Group have steadily increased. In the first ten
shipments to China stood at 53.52 million tonnes, down
months, the group achieved cargo shipments of 6.6 million
21.73% on the year, according to Kpler's cargo-tracking
tonnes, surpassing the total throughout 2023 and rising
data. The volume accounted for 41% of Russia's total
over 60% on the year.
seaborne coal exports.
The Russian Federation and China are jointly China Oct power consumption up 4.3% YoY
implementing the Zashulansky coal project in
China consumed 774.2 TWh of electricity in October
Transbaikalia, the deputy prime minister recalled, adding
2024, rising 4.3% on the year, according to data released
that Russia is also interested in expanding partnerships in
by the National Energy Administration on November 20.
the production of electrical equipment.
The primary industries, primarily the agricultural
Shanxi-Shandong rail-water transport alliance officially sector, recorded a 5.1% year-on-year increase to consume
launched 10.6 TWh of electricity in October. The secondary
industries, mainly the industrial sector, utilized 533.7 TWh
The rail-water transport alliance between Shanxi and of electricity, marking a 2.7% rise on the year. The tertiary
Shandong in northern China was officially established industries, largely the service sector, used 136.7 TWh of
during a promotional conference held on November 19, electricity, up 8.4% from the year prior.
aimed at accelerating the development of a major logistics
For the residential segment, power consumption in
corridor for bulk commodities between the two regions.
October also saw an 8.1% increase year on year to 93.2
The conference, organized by the Jining Municipal TWh.
Government and the China Railway Taiyuan Group, saw
From January to October, China's power consumption
the alliance will foster closer cooperation of railways,
grew 7.6% from a year earlier to 8,183.6 TWh. Power
ports and enterprises in Shanxi and Shandong and
companies above designated size generated 7,802.7 TWh
leverage the Beijing-Hangzhou Grand Canal, Wari railway,
of electricity during the given period, data showed.
and the Houri Corridor to promote rail-water intermodal
transport. Over the first ten months, the primary, secondary and
tertiary sectors consumed 114.1 TWh (6.7% YoY), 5,272.1
Shanxi, as a coal-producing region and energy base in
TWh (5.6% YoY) and 1,531.5 TWh (11.0% YoY) of
China, accounts for approximately one-quarter of the
electricity, respectively. The residential power
nation's annual coal output. The CR Taiyuan Group is the
consumption advanced by 12.3% year on year to 1,265.9
largest freight carrier and the leader in heavy-haul

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CCI Daily | Issue 2808 Nov 20, 2024

TWh. shortages in recent years as demand outpaced demand

growth.
India's coal-fired power plants to miss pollution Missing these deadlines would undermine efforts to
targets again combat the smog that has been linked to millions of
India's coal-fired power plants are poised to miss premature deaths and illnesses, as well as economic losses
critical pollution reduction deadlines again, exacerbating due to reduced productivity. Each year, the densely
the severe smog covering most parts of the country, populated northern regions in India suffer from severe
Bloomberg reported. pollution, stemming from vehicle emissions, construction
dust, and the burning of crop waste after harvest, in
About three-quarters of the coal-fired generators near
addition to power plants.
major cities are unlikely to meet the year-end deadline for
installing equipment to reduce sulfur dioxide emissions, On November 18, New Delhi's air quality index, a
according to sources familiar with the matter. measure of pollutants, surged to over 1,700, far
surpassing the safe level of 50. In response, authorities
If fully completed, the Center for Research on Energy
have halted construction activities, asked schools to
and Clean Air (CREA) said that these systems could cut
conduct online classes and advised residents to stay
India's sulfur dioxide emissions by nearly two-thirds,
indoors as much as possible.
significantly improving air quality and public health. Sulfur
dioxide breaks down into sulfates, representing nearly a Philippines resumes new renewable energy projects
third of the particulate matter that contributes to India's
smog, explained Manoj Kumar, an analyst at CREA. The Philippines will resume the processing of new
renewable energy contracts starting November 25 after a
About 20 GW of coal-fired power plants near urban
five-month suspension, Bloomberg reported, citing the
areas face the December deadline, while other generators
country's Department of Energy on November 19.
near critically polluted regions must comply by the end of
2025, and the rest by late 2026. India initially set targets Affected by surging applications following the
to clean up power plant emissions in 2015 and has already government's efforts to boost renewable energy, the
extended the compliance deadlines twice. Department of Energy halted processing of contracts in
June 2024, aiming at updating the list of active contracts,
The Ministry of Power in India is preparing to seek a
enhancing the online application system, and streamlining
third extension and exemptions for plants with
processes with government agencies.
operational lives fewer than ten years, sources noted. Less
than 10% of the nation's total 218-GW coal-fired power In October, the department said that at least 105
plants have installed pollution control equipment. renewable energy projects were being considered for
termination due to non-compliance with timelines.
Neither the Ministry of Power nor the Ministry of
Environment, which must approve the delays, responded The resumption of applications would significantly
to requests for comment. contribute to the Philippines's renewable energy goals,
which plan to increase the share of renewable energy in
Opponents of the pollution control steps could be
its power mix to 35% by 2030 and 50% by 2040.
attributed to high installation costs and the need to shut
down plants for about a month, which would further curb This move is expected to attract more investors and
electricity supply. India has struggled with power bolster the sustainable growth in the energy sector,
Energy Undersecretary Rowena Guevara said.

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CCI Daily | Issue 2808 Nov 20, 2024

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CCI Daily | Issue 2808 Nov 20, 2024

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CCI Daily | Issue 2808 Nov 20, 2024

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CCI Daily
Issue 2808 Nov 20, 2024

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