Chinese benchmark coal is at the highest in eight years and LNG prices hit six-year highs, pushing up electricity prices in Japan where limited nuclear capacity makes the nation vulnerable to fuel price volatility.
China too is being exposed as an effective ban on coal imports from Australia pushes up domestic prices.Qinhuangdao coal prices are at 718 yuan ($110) a tonne, compared with coal delivered from the Australian port of Newcastle at $79.50 a tonne.
Chinese industrial activity snapped back to pre-coronavirus growth level in November, driving up power use by 9.4% year-on-year to 646.7 billion kilowatt hours, the National Energy Administration said.
Daily coal use at major coal-fired power plants in eight provinces in eastern China was up 6% as of last week, from the corresponding period a year earlier, while coal inventories are at 85 percent of 2019 levels.
Domestic prices of LNG in China have also surged to 60% more than last year, according to Sublime China Information.
Wholesale prices in China’s manufacturing hub in Jiangsu, Shandong and Zhejiang provinces have shot up as much as 40% in the past week to about 7,500 yuan a tonne, the consultancy said. Imports of LNG into China in December were set to hit a record high.
Prices for LNG cargoes to be delivered to Asia in January were estimated to be about $12.70 per million British thermal units (BTUs), equivalent to about $660 a tonne.
“Cold weather across China and northeast Asia has … created a sharp rise in heating demand,” said Robert Sims, research director at Wood Mackenzie.One year into the coronavirus pandemic, which crushed the energy market and sent oil prices into negative territory and LNG to record lows, the return of winter weather has created new volatility and pushed prices sharply higher.
Temperatures are expected to be below historical averages in Tokyo, along with Seoul, Beijing and Shanghai, through year-end, according to Refinitiv weather data, keeping pressure on prices.
Japan is experiencing record snowfalls, causing power shortages, stranding villages and snarling up traffic.
Some parts of the country are bracing for as much as 80 cm (32 inches) of snow as the cold snap grips much of the country.
With only three nuclear reactors operating and disruptions of supplies of other fuels, Japan’s regional utilities have been transferring power between regions to fill shortages, according to the companies involved.
“We are prepared to take all possible measures to secure power including procurement from the electricity market,” Takashi Morimoto, president of Kansai Electric Power, said on Friday.
($1 = 6.5406 Chinese yuan renminbi)
- GLOBAL LNG-Asian prices edge higher on Indian demand, Mideast tensions
- Thermal coal prices set for recovery this year as oversupply tightens
- GAIL ferries LNG in trucks over 1,700 km to fuel gas demand in east
- Coal firms plead to courts, Trump for West Coast export terminals
- UK weather forecast – Storm Brendan to smash Britain with 100mph wind, 50ft waves and snow from today
- 10 years after the storm: has New Orleans learned the lessons of Hurricane Katrina?
- How to cook the perfect laksa – recipe
- How the aristocracy preserved their power
- Leigh-Anne Pinnock displays her lithe physique as she models a signature pink bikini from her own range while enjoying some winter sun in Jamaica
- Stay protected from the elements year-round in one of the best 4-season tents
- Money Is the Oxygen on Which the Fire of Global Warming Burns
- Zaghari-Ratcliffe’s ordeal: a story of British arrogance, secret arms deals and Whitehall infighting
- Colm Tóibín, Anne Enright, Roddy Doyle ... the Easter Rising 100 years on
- Adelaide's infamous cock-ups: The lasting legacy of big decisions in the City of Churches
- Frustrated US lawmakers threaten action on Trump’s tariffs
- Earthquake swarm of almost 2,500 tremors at Yellowstone supervolcano since June is one of the longest on record
- 2019 Sundance lineup includes films from Shia LaBeouf, Chiwetel Ejiofor
- The $95 bllion centerpiece of the trade deal is already in doubt
- BUSINESS NEWS HEADLINES JAN. 21
- How the U.S.-China trade deal will ripple through food, finance and energy
Perfect winter storm jolts north Asian prices of coal, power and LNG have 675 words, post on energy.economictimes.indiatimes.com at December 19, 2020. This is cached page on Europe Breaking News. If you want remove this page, please contact us.