Caixin
Jul 16, 2021 07:48 AM
ENERGY INSIDER

Energy Insider: World’s Largest Steelmaker to Get Even Bigger

In today’s Caixin energy news wrap: China’s national carbon market is set to kick off Friday; Henan tells coal mining companies not to sell thermal coal outside the province; a former Hunan nuclear official is placed under investigation.

Baowu Steel to acquire Shandong steelmaker

China Baowu Steel Group, the world’s largest steelmaker, plans to acquire smaller rival Shandong Iron & Steel Group Co. Ltd. (600022.SH) in a further consolidation of China’s steel industry. The deal would increase Baowu Steel’s annual crude steel capacity by 30 million to 150 million tons. Baowu Steel is discussing the potential restructuring with the Shandong provincial state asset regulator, Shandong Iron & Steel said Wednesday in a filing. The Shandong steelmaker is the seventh-largest in China.

China set to launch national carbon market Friday

China’s long-awaited national carbon market will start trading Friday, the Shanghai Environment Energy Exchange said Thursday. China’s national carbon market is expected to become the world’s largest, outpacing Europe’s, as total annual carbon emissions of just the first batch of companies involved amount to more than 4 billion tons, according to official estimates.

Former senior Hunan nuclear official under investigation

Chen Shushan, the former party head and director of the Hunan Nuclear Geological Bureau, came under investigation on suspicion of serious disciplinary and legal violations, China’s top graft buster said. Chen, 65, joined the bureau in 2006 and retired in 2019.

Henan bans sales of thermal coal outside the province

Central China’s Henan province told local coal mining companies not to sell thermal coal to clients outside the province to ensure local supply, underscoring mounting pressures of on coal supply, the Securities Times reported.

Power consumption rose 9.8% in June

China’s total electricity consumption in June reached 703.3 billion kilowatt-hours, up 9.8% from a year ago, indicating stable economic recovery, the National Energy Administration said. Power consumption by primary industry rose 16.3% in June to 8.8 billion kilowatt-hours, while that of secondary industries grew 8.5% and tertiary industries 17.5%. Secondary industries, which include manufacturing, oil refining and energy production, accounted for 60% of total power consumption in June. From January to June, China’s total electricity usage reached 3.9 trillion kilowatt-hours, up 16.2%.

Qinghai to top 100 million kilowatts of wind and solar power by 2030

Northwest China’s Qinghai province outlined an ambitious plan to increase capacity of wind and solar power generation to more than 100 million kilowatts by 2030, bringing total clean energy capacity to more than 140 million kilowatts.

Ganfeng Lithium blows away first-half profit estimates

Ganfeng Lithium (002460.SZ) expects to report that first-half profit significantly topped estimates, the company said, citing strong prices and investment gains. Net profit is expected to rise 730%–922% to between 1.3 billion yuan and 1.6 billion yuan (between $200.9 million and $247.3 million). The previous profit estimate was 800 million yuan to 1.2 billion yuan.

Tianqi Lithium swings to profit in first half

Tianqi Lithium (002466.SZ) said it expects to report a profit of 78 million yuan to 116 million yuan ($12 million to $18 million) for the first half, reversing a previous projection of a net loss. Tianqi Lithium said sales and prices of major lithium products beat expectations.

Contact editors Han Wei (weihan@caixin.com) and Bob Simison (bobsimison@caixin.com)

Download our app to receive breaking news alerts and read the news on the go.

Follow the Chinese markets in real time with Caixin Global’s new stock database.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code