In today’s Caixin energy news wrap: Chinese regulators vow to stabilize fertilizer supply; paper product prices on the rise as costs grow; Cosco unit to acquire stake in container terminal in Hamburg; businesses closed in Zhejiang to cut energy use.
China certifies first carbon-neutral oil shipment
Chinese oil major Sinopec, Cosco Shipping Holdings Co. and China Eastern Airlines Corp. jointly received China’s first carbon-neutral petroleum shipment certification as the three state giants collaborated to offset the carbon dioxide produced throughout the cargo's full cycle from production to shipping. The 30,000-ton cargo was produced by Sinopec in Angola and shipped by Cosco to an East China-based Sinopec refinery for processing, Sinopec said. To offset the carbon dioxide emissions, the companies purchased emission reduction quota to fund carbon-reducing projects such as tree planting, solar, wind and biomass power generation.
Regulators pledge to secure fertilizer supply to stabilize prices
The National Development and Reform Commission (NDRC) joined 12 other central government agencies to issue a notice requiring companies to prioritize the supply of raw materials and energy to fertilizer makers to stabilize market supply and prices. Fertilizer suppliers were asked to improve production efficiency and secure energy allowances for key producers, according to the NDRC. Beijing would take various measures to secure fertilizer supply, including releasing potash fertilizer reserves and ensuring imports to bolster food security, the NDRC said.
Paper manufacturers hike prices on rising costs
Many Chinese paper companies raised factory prices for corrugated fiberboard products in August amid rising costs of raw materials, state broadcaster CCTV reported. The prices of level AA corrugated fiberboard reached 3,870 yuan ($598) per ton, up 15% year-on-year. The key raw material for corrugated fiberboard is wastepaper, the supply of which declined dramatically in China as the government banned all imports of solid waste.
Cosco unit to pay $116 million for Hamburg terminal stake
Hong Kong-traded Cosco Shipping Ports Ltd., a terminal operator of China Cosco Shipping Corp, will pay 65 million euros ($76 million) to Hamburger Hafen und Logistik (HHLA) for a 35% stake in Container Terminal Tollerort (CTT) in the Port of Hamburg, expanding the Chinese shipping giant’s terminal network in Europe. Cosco Shipping Ports also agreed to assume CTT’s 34 million euros of debt to HHLA, putting the total value of the deal at 99 million euros ($116 million).
GCL-Poly denies spinoff reports
GCL-Poly Energy Holdings Ltd., a Hong Kong-listed polysilicon supplier, denied reports that it is planning to spin off its wholly owned subsidiary Jiangsu Zhongneng Polysilicon Technology Development Co. Ltd. Media reported recently that GCL-Poly is mulling a separate listing for Jiangsu Zhongneng. GCL-Poly said there is no plan for Jiangsu Zhongneng to launch any fundraising or public listing.
Goldwind’s largest shareholder to offload stake
Wind turbine manufacturer Xinjiang Goldwind Science & Technology Co. Ltd. said its largest shareholders Hexie Health Insurance Co. Ltd. plans to sell as much as 5% of Goldwind over the next six months. Hexie Health, which currently holds 12.5% of Goldwind, will no longer be the largest shareholder after the transaction, and there will remain a vacancy for absolute controlling shareholder of the company.
North China’s Shaanxi cuts gas transportation prices
Shaan Xi Provincial Natura said it would cut gas pipeline transportation prices by 2.4 yuan ($0.37) per cubic meter on the order of the Shaanxi Development and Reform Commission. The adjustment will cause a loss of 35 million yuan ($5.4 million) this year. According to a recent notification of the provincial government, the price cut is part of Shaanxi’s actions to reduce the cost of gas for its nonresidential sectors amid surging prices.
Zhejiang shuts down businesses amid power shortage
Publicly traded curtain manufacturer Xidamen New Material Co. Ltd. and dyeing company Zhejiang Yingfeng Technology in China’s Southeast Zhejiang province announced one-week shutdowns on the order of the local government. The companies said Zhejiang is rationing power usage and coal consumption amid power shortages and tight coal supply. The province was graded as “second-level pre-warning” in the first half under China’s energy-control performance system, indicating that it failed to meet energy-control targets. Meanwhile, a few traded companies in provinces including Jiangsu, Guangdong and Yunnan also announced temporary shutdowns for energy consumption control.
Contact editors Han Wei (weihan@caixin.com) and Bob Simison (bobsimison@caixin.com)
Get our weekly free Must-Read newsletter.
