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interview with the Rossiya-24 TV channel on the 15th anniversary of the creation of the state corporation. This includes long-standing partners of the corporation - Bangladesh, India, Egypt, China and Turkey, he added. Rosatom is marking 15 years since its establishment. It is one of the top three in the nuclear fuel cycle services market, ranking second in uranium mining, first in uranium enrichment, and third in fuel production. Rosatom is also the world leader in terms of the number of power units of nuclear power plants (NPP) in the portfolio of foreign orders and accounts for 70% of the global NPP construction market.
Russia’s power demand flat in November and prices were down a bit.
Lately, the cold weather spell raised both prices and volumes. Despite the lack of clear direction (prices up in October, down in November), we generally are comfortable with our view on Inter RAO and Unipro – both Buy. November spot prices were down by 2.5% y/y, while consumption was up 0.4%, according to consumption and power price statistics by Market Council. The data reveal lack of direction in European Russia, while wholesale spot power prices in Siberia (due to low hydrology) were up a great deal (+28.1%). Mixed. Sale of electricity account for roughly 60% of gencos’ revenues, ex-DPMs. Hence, we track the pricing and demand levels. In isolation, spot prices translate into flat to declining margins from electricity sales. However, in the power market framework that separates power and capacity payments, gencos may source significant part of their revenues from stable capacity flow, which was indexed by 25% y/y in 2022 and we expect will go up further by 15% in 2023.
Inter RAO, Russia’s operator of export-import of electricity, expects that by the end of the year electricity exports to China will amount to a record-breaking 4.4-4.5bn kWh, the company’s CEO Boris Kovalchuk told reporters. Earlier, CEO of Rosneft Igor Sechin said that Russia’s electricity exports to China increased by 33% in ten months of 2022 to almost 4bn kWh "Inter RAO has boosted electricity supplies from Russia to China this year amid abnormal heat and energy deficit at the request of the Chinese side. In January-October supplies rose by 33% y/y to almost 4bn kWh," he said. Earlier, Russia’s power generating company Inter RAO told TASS that Moscow and Beijing had signed an agreement stipulating an increase in Russia’s electricity exports to record 4.4bn kWh in 2022. TAGS
9.1.11 Metallurgy & mining sector news
146 RUSSIA Country Report January 2023 www.intellinews.com
Russia’s steel sector surprised this year as despite the sanctions, logistical bottlenecks and contracting economy, steel production was up 4.8% y/y over 10M22 while general economic growth was down 2.1% in the same period BCS GM reports.
Normally steel production is closely associated with economic activity.