Energy News  
ENERGY NEWS
China 2015 electricity output down 0.2 percent
by Staff Writers
Beijing (AFP) Jan 19, 2016


China, stock market turmoil spook German investors at start of year: ZEW institute
Frankfurt (AFP) Jan 19, 2016 - Worries about slowing growth in China and the ensuing global stock market turmoil are souring investor sentiment in Germany at the start of the new year, a leading survey showed on Tuesday.

The investor confidence index calculated by the ZEW economic institute declined by 5.9 points to 10.2 points in January, the think tank said in a statement.

"The beginning of the new year is characterised by capital market turmoil in China, which has also led to significant share price declines in Germany," said Sascha Steffen, ZEW's head of international finance and financial management research.

"As in the previous year, weak economic growth in China and other important emerging markets is putting a strain on Germany's economic outlook," Steffen said.

For the survey, ZEW questions analysts and institutional investors about their current assessment of the economic situation in Germany, as well as their expectations for the coming months.

The sub-index measuring financial market players' view of the current economic situation in Germany rose by 4.7 points to 59.7 points in January, ZEW said.

Capital Economics economist Jennifer McKeown said the decline in the index "confirms that the recent turbulence in global financial markets and the soft tone of the domestic hard data have dented investor sentiment."

The expert said that "admittedly, the rise in the current conditions index to a high level is an encouraging sign, but it is at odds with the weaker tone of the hard data.

"In all, while we do not see German growth grinding to a halt, we still envisage a slowdown from about 1.5 percent in 2015 to one percent or so this year," McKeown said.

BayernLB economist Stefan Kipar pointed out that the ZEW barometer has only limited informative value with regard to gross domestic product (GDP) growth.

"It offers no reason to slide into pessimism," he argued, pointing out that the eurozone and German economies in particular would continue to benefit from the renewed drop in oil prices and robust consumer demand.

"Too much mustn't be read into the decline in the ZEW index," Kipar said.

China's power production fell in 2015 for the first time on record as the world's second-largest economy grew at its weakest pace in 25 years, official data showed Tuesday.

Electricity generation and consumption are closely observed in China because they reflect the strength of economic activities, amid doubts over the accuracy of official statistics.

The country last year generated 5.62 trillion kilowatt-hours (kWh) of electricity, down 0.2 percent from 2014, according to data from the National Bureau of Statistics (NBS).

It was the first ever decline shown among the figures available on the NBS' website, which go back to 1998.

China's gross domestic product (GDP) expanded 6.9 percent last year, the NBS said, the lowest since 1990 and down from 7.3 percent in 2014.

Even Premier Li Keqiang has reportedly expressed doubts about Chinese official statistics, telling US diplomats earlier in his career that he preferred to focus on electricity consumption, rail cargo volume, and the amount of loans issued when evaluating the economy.

Chinese leaders -- who targeted growth of "about seven percent" -- have said they are seeking lower but better quality and more sustainable growth as they try to steer the country away from investment- and exports-driven growth of the past to one more oriented towards domestic consumer demand.

But the transformation is proving bumpy and world markets have been hammered in recent weeks by worries over China, with a weakening Chinese currency and its volatile stock markets complicating the situation.

The government is widely expected to lower the growth target for this year, and President Xi Jinping has said expansion of 6.5 percent will be sufficient for China's needs.

China crude steel output falls for first time in 34 years
Beijing (AFP) Jan 19, 2016 - China's crude steel output fell last year for the first time since 1981, official figures and reports said Tuesday, amid a wider slowdown in the country's economy and European accusations of dumping.

Crude steel production declined 2.3 percent year-on-year to 803.8 million tonnes in 2015, the National Bureau of Statistics (NBS) said. The official Xinhua news agency described it as the first drop since 1981.

China accounts for half the world's crude steel production, according to data from the World Steel Association.

But the sector has been plagued by overcapacity in both China and the rest of the world for years, and global prices have plummeted in the face of oversupply.

They have also been hit by concerns over China's slowing growth, which the NBS said reached 6.9 percent in 2015, its slowest for 25 years.

European producers accuse Chinese firms of selling below the cost of production, and French economy minister Emmanuel Macron has warned that Europe would not accept the "Chinese dumping".

Beijing has banned new projects in a variety of industries in an effort to correct the problem, Xinhua reported, including steel, cement, electrolytic aluminium, flat glass and shipbuilding.

Many of China's giant state-owned enterprises are unviable and Premier Li Keqiang has called for a "cutback on overcapacity in traditional industries as well as a large number of zombie enterprises". State media said his remarks were directed at coal and steel.


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