Australia Coal and Laos Power: Operational and Financial Summary slide image

Australia Coal and Laos Power: Operational and Financial Summary

CHINA China thermal coal market review CHINA THERMAL COAL IMPORTS/EXPORTS* Unit: Mt 235 252 229 178 156 137 136 ■Import 18 11 8 6 5 4 4 2010 2011 2012 2013 2014 2015 2016F Sources: Banpu MS&L Estimates CHINA ANNUALIZED ACTUAL IMPORT IQ13-4Q15* Unit: Mt 251 242 244 270 284 232 199 201 153 160 167 145 Import 7 4 4 5 2 5 5 4 ■ Export 7765 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 CHINA DOMESTIC COAL PRICES Unit: RMB/t -> 5,800 kcal/kg > 5,500 kcal/kg 1,000 800 600 400 200 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Jall 14 Mar-14 May-14 Jul-14 Sep-14 Source: www.sxcoal.com/cn 17 February 2016 Note: *includes anthracite and lignite imports/exports BANPU ■ Export Nov-15 Jan-16 403 369 331 COMMENTS ■The reduction of energy consumption per unit of GDP, combined with air pollution control measures, points to a weaker trend in overall energy demand growth. ■ » Installed hydropower capacity is expected to continue moderate growth in 2016 while coal loses generation share Protectionism will continue with risk of new measures to assist domestic coal producers. ■ RMB depreciation is likely to continue " Coal prices are under pressure due to severe capacity overhang in coal industry and cost cutting ■ Coal industry reform is expected to move slowly to avoid social unrest ■Thermal coal imports face greater challenge from the government's air pollution control measures and the continuing development of ultrahigh-voltage transmission lines which will reduce coal demand in coastal area. -> 5,000 kcal/kg Nov-14 Jan-15 Mar-15 May-15 Sep-15 29 29
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