UPDATE: Independent power producers and coal producers in balance of power stalemate

Overview

After a particularly bad 2008, the performance of Chinese power generation companies should improve this year, driven by the decline in coal prices from peak 2008 levels and the recovery of power demand expected in H2/09. At the moment generation companies are engaged in a cat-and-mouse game with coal producers over pricing. This has led to an unusual stalemate in negotiations as the generation companies stand firm on their demands for cuts in the coal prices agreed in early 2008....