Shandong pushes industries to join market-based electricity trades by 2020

Published: Sep 13, 2018 15:15

Save

The province will advocate market-based electricity trading across coal, steel, nonferrous metals, and building materials

SHANGHAI, Sep 13 (SMM) – From September, Shandong province will advocate market-based electricity trading across coal, steel, nonferrous metals, and building materials, according to a notice by provincial authorities on Friday September 8. Companies in the four sectors to trade electricity through market-based mechanisms instead of a state-set system, by the start of 2020.

From now till 2020, plants will decide on when they enter the market for electricity trading. They can begin trading electricity after they meet safety amd environmental requirements. Across these four sectors in Shandong, market-based trades of electricity accounted for 53% of overall trades. This equates to 26.64 billion kWh of electricity, according to the notice.

The move is part of the province’s efforts to liberalise its electricity market, as China pushes ahead with cutting prices and boosting efficiency across the electricity sector. Currently, most of the electricity in China is sold by producers at prices set by the grid companies, supervised by the central government.

Government policy Steel Non-ferrous metals

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

5 hours ago

Rate Hike Lands, Platinum and Palladium Consolidate; Spot Market Supply Tight, Deals Near Parity [SMM Platinum and Palladium Weekly Review]

Platinum and palladium prices opened lower with a gap this week, consolidated at lows, and moved sideways after the rate hike landed, with both metals closing lower for the week. In the spot market, after futures opened sharply lower early in the week, spot platinum and palladium discounts narrowed notably. Orders from most downstream buyers recovered, as they actively inquired and purchased near short-term price lows following the futures market. Cargoes at deep discounts were cleared, and suppliers held prices firm on shipments. In the near term, platinum and palladium are likely to consolidate on a subdued note. Going forward, close attention should be paid to US Fed officials' remarks, US September inflation and employment data, and the policy path from the meeting.

5 hours ago

6 hours ago

Platinum & Palladium Compounds Weekly: Faster Spot Deliveries, Modest Domestic Auto Recovery

6 hours ago

7 hours ago

Fed Unanimously Votes for Rate Hike, Precious Metals Face Downward Pressure

**SMM News, September 17:** Overnight, Federal Reserve members voted unanimously in favor of an interest rate hike, a rare outcome, and further consecutive rate hikes remain possible. Precious metals have been under sustained downward pressure on the back of the rate hike news, triggering a sudden pullback in rhodium prices following their earlier rally. Some market participants noted that selling liquidity has dried up markedly over the past two days, and forced liquidation at lower prices has caused rhodium to fall sharply.

7 hours ago