The global energy crisis originated in Europe and spread to Asia. Recently, Vietnam Coal and Mineral Industries Group (TKV) opened a bidding package to import coal with a value of more than VND 1,000 billion in the fourth quarter.
According to Petrotimes, Vietnam Coal and Mineral Industries Group (TKV) has just announced the selection of a contractor for a bidding package to buy imported coal from the fourth quarter with a total investment of VND1,062 billion.
This bidding package to buy imported coal is financed from commercial loans and other legal sources of TKV.
The value of the bid package can be updated within 28 days before the date of bid opening, if necessary. Contractors are selected in the form of open bidding, international bidding without prequalification, not online, method 1 phase 2 dossier bags.
From the beginning of the year to now, the average world coal price has increased sharply by 110% over the same period in 2020 and 75% compared to the beginning of the year, setting the highest record in history.
In the country, coal price policy is under strict management, so most domestic coal enterprises have not benefited from the current price “fever”.
Recently, SSI Securities Company said that in the first 9 months of the year, TKV’s total revenue reached VND 94,600 billion, an increase of 2%/year and coal consumption was only nearly 30 million tons, down 1.3%/year. due to prolonged social distancing.
Along with that, the mobilization of thermal power decreased because of the sharp increase in renewable electricity output. Meanwhile, the cost of domestic coal production is increasing.
Vietnam mainly imports coal from Indonesia and Australia. (Photo: Unian)
Currently, two domestic producers, TKV and Northeast Corporation, have to import about 20-25% of coal from Australia and Indonesia to mix with domestic coal to meet domestic demand.
This is a mandatory requirement because the technology of new power plants regulates the quality of coal in terms of heat level, ash and slag after burning.
In 2022, the analysis team of SSI believes that the coal industry will have many positive signs when the domestic coal price is expected to adjust by 10-15% because the coal production costs of TKV and the Northeast Corporation have increased. in 2021 and demand from thermal power begins to recover when social distancing is eased.
On that basis, coal mining enterprises will also begin to benefit when renegotiating a new selling price for TKV in 2022.
According to the General Department of Customs, in September, Vietnam’s coal imports reached 2.1 million tons, equivalent to 319 million USD, down 44% in volume and 35% in value compared to August.
In 9 months, coal imports reached 29.5 million tons, equivalent to nearly 3.1 billion USD, down 32% in volume and unchanged in value compared to the same period in 2020.
According to SSI, the price of imported coal of Vietnam increased in line with the world coal price, with an average increase of 83% over the same period in the first 9 months of the year.
With the sharp increase in coal prices, the main industries in our country will be affected including thermal power, cement, metallurgy and fertilizer.
In particular, because of the sudden increase in world coal prices compared to domestic coal, industries with a high proportion of imported coal to total coal used in the industry such as cement, accounting for 66%, iron and steel accounted for 88%, fertilizer 74%. will be most affected.
Thermal power is less affected because imported coal accounts for only 24% of total coal use and the Government also prioritizes domestic coal sources for thermal power.
The coal industry is directly affected by the coal fever, but the coal price policy is strictly controlled by the Government, so most of the coal industry has not benefited from the current coal fever.
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