Energy Insider: Regulators Move to Limit Prices of Fertilizer and Plate Glass
In today’s Caixin energy news wrap: Chinese regulators will tighten scrutiny of new renewable energy projects; Chinese lithium stocks surge amid electric-vehicle boom; market watchdog to crack down on fertilizer price gouging
President of state-backed Shanghai Electric dies at age 50
Huang Ou (黄瓯), the president and executive director of the government-backed energy and industrial equipment maker Shanghai Electric, fell to his death from his apartment in Shanghai’s Puxi district Thursday morning in an apparent suicide, multiple sources told Caixin. No further details surrounding his death were available. He was 50 years old.
Coal mining industry profits double in first half on surging prices
Chinese coal mining companies’ first-half profits more than doubled from a year ago thanks to surging coal prices. Combined profit of the country’s 4,284 major coal mining companies rose 113.8% year-on-year to 206.88 billion yuan ($32 billion), according to the China National Coal Association. Total revenue reached 1.22 trillion yuan, up 30.9%. Large listed coal companies reported robust growth in the first half. China Shenhua Energy Co. Ltd. (601088.SH), the country’s largest publicly traded coal mining company, recorded a net profit of 26 billion yuan, 1.26% higher than a year earlier.
Lithium stocks surge on strong demand
Chinese lithium stocks surged over the past month as the country’s booming market for electric vehicles drove sustained demand for the metals at the heart of the batteries that power them. Shares in domestically traded lithium mining companies rose by half on average since the start of July, with some equities gaining more than 200%, according to Caixin calculations based on stock market data.
Ganfeng Lithium to invest $1.3 billion in two battery projects
A subsidiary of Jiangxi Ganfeng Lithium Co. Ltd. (002460.SZ) will invest 8.4 billion yuan ($1.3 billion) in two projects that will make “new type” lithium batteries, although the company did not explain what those entailed. The company will invest 3 billion yuan to set up a battery plant in Xinyu High-Tech Industry Development Zone in Jiangxi province, with an annual capacity of 5 gigawatt-hours (GWh). It will invest 5.4 billion yuan to set up an industrial park in Chongqing Liangjiang New District, southwest China, which will have an annual battery production capacity of 10 GWh and an advanced battery research institute.
China Energy Engineering invests $660 million in Russian thermal power project
Two units of China Energy Engineering Co. Ltd. (03996.SZ) signed a $660 million contract to build a thermal power station in the Republic of Mordovia, Russia. With a capacity of 860 megawatts, the combined-cycle power plant with both a gas and a steam turbine will be Russia’s largest in terms of single-unit generating capacity.
Hunan’s first 1 million kilowatt thermal power unit connects to grid
The No. 1 generating unit of Yongzhou Power Plant, Hunan’s first thermal power generating unit with capacity of 1 million kilowatts, started operation Thursday. The project includes two coal-fired generating sets, with a total investment of 7.5 billion yuan, and is expected to generate 8 billion kilowatt-hours of electricity per year.
Market regulator probes fertilizer makers over price gouging
China's State Administration for Market Regulation launched an investigation of fertilizer makers suspected of price gouging. The price of certain fertilizers like potash and phosphate surged amid tight supplies and recent market hype. The regulator said it will continue to keep a close watch on fertilizer prices and crack down on illegal activities such as hoarding, price gouging and price collusion.
China moves to rein in skyrocketing plate glass prices
The Ministry of Industry and Information Technology (MIIT) moved to curb plate glass prices after surging real estate demand and limits on production pushed the cost of the key building material to a decade high. Businesses have been urged to increase production, improve coordination across the supply chain and pay attention to the price of raw materials like quartz sand, soda ash and natural gas to restore price stability, the MIIT said Wednesday in a statement. The high prices mainly benefit China’s large glass manufacturers but squeeze small and midsize downstream businesses, a trend that may have prompted the action from the central government, analysts said
China tightens scrutiny of renewable energy projects
The National Energy Administration ordered the country’s energy giants and local governments Thursday to send updates on wind, solar and other renewable power projects that have been newly approved or are under construction, including providing timelines for integration with power grids. The new rule is set to “further push the development and building of renewable electricity projects” and to “ensure that annual development and construction goals are achieved,” the administration said in a statement.
Fuyao Glass reports strong first-half profit increase
Fuyao Glass Industry Group Co. Ltd. (600660.SH), the world’s biggest vehicle glassmaker, reported a net profit of 1.77 billion yuan ($274 million) in the first half, a year-on-year increase of 83.54%. The company’s operating revenue totaled 11.5 billion yuan during the period, 42.14% higher than a year earlier. The company attributed its strong performance to a recovery in the auto market and increased sales and marketing efforts. Overall vehicle production in the first half totaled 12.57 million units, reflecting a year-on-year increase of 24.2%, according to the China Association of Automobile Manufacturers. Passenger vehicle production for the January-to-June period totaled 9.84 million units, up 26.8% from a year earlier.
Contact editors Han Wei (firstname.lastname@example.org) and Bob Simison (email@example.com)
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