Home / Knowledge / News / Textiles / Hike in coal prices to have cascading effect
Hike in coal prices to have cascading effect
01
Feb '10
It is reported that the textile and apparel group 'Shenhua' and China Coal Group have signed the electricity coal contract. As negotiations of 2010 electricity coal contract have basically ended, the increase in electricity prices for those generated from coal has almost become a reality.

Under the agreement, the contract price of coal to generate electricity rises 5.6 percent to 570 Yuan per ton, or up 30 Yuan per ton over that of last year, while the contract price of electricity coal for many other power supply companies has increased about 30 ~ 50 Yuan per ton compared with 2009.

In accordance with coal and electricity price linkage mechanism, in a coal and electricity price linkage cycle (no less than 6 months in principle), if changes of average coal price from mine were 5 percent larger or lower than the previous cycle, the price should be adjusted on basis that power companies absorb 30 percent of the changes by themselves.

Based on this calculation, the current conditions are suitable for launching coal and electricity linkage mechanism. Some analysts predict that coal and electricity linkage mechanism will be started in the second half of this year.

In this way, electricity price will inevitably increase with the rise in coal price. For most exporting textile and apparel trade enterprises, it will once again increase business costs; as the rise of electricity price will increase operating costs of production directly and indirectly and in short have a cascading effect.

Fibre2fashion News Desk - China


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X