Rising Coal Prices Affecting Utilities’ Profitability in China

Summary

Utilities in China rely heavily on coal fired power generation owing to a large indigenous supply of coal. The rapid economic and industrial growth in the country has resulted in a manifold increase in power demand. China is one of the leading coal exporters; however, for the last couple of years it has significantly reduced its exports and has even been importing coal to keep up with the growing demand for coal from its power and other industrial sectors. Utilities were already grappling with rising coal prices due to increased demand, but have recently been hit by a shortage of low priced coal supplies from international markets, which has resulted in additional losses. Utilities that used to compensate for the disparity between governments’ controlled electricity prices and high domestic coal prices by importing cheaper coal from international markets face a stiffer challenge now, which has impacted their overall profitability.

Scope

- Market prospects for utilities in China as a result of rising coal prices.
- Key factors responsible for the coal price rise in China
- Future and current market prospects offered by coal-fired power in China by applying measures to check its price rise

Reasons to buy

- Identify key growth and investment opportunities with coal-fired power generation in China.
- Gain insights on the factors responsible for the price rise of coal in China.
- Developing strategies and policies to effectively check the rising coal prices
- Facilitate decision making based on upcoming market developments with coal-fired power generation in China