Archive for June, 2010

Coal Prices held back for power producers in China

June 28th, 2010

China requests that coal miners not raise prices

Higher coal prices would increase price of inflation on all things in China, so the Govt. has asked that the Coal Companies keep prices from rising too much…

The prices for coal set by annual supply contracts cannot be changed. All of the state run coal mine operators and coal industry leaders will work together coal prices steady.

The largest Coal Company in China Shenhua has set its price of coal with 5,500 kcal/kg (NAR) was 570 yuan a tonne, while the spot price for the same grade of coal stood at about 760 yuan a tonne.

The Chinese government is trying to help the power plants so they do not continue to lose too much money from high coal prices. The price of energy in China is set by the NDRC.

Spot coal prices have remained stable over the past month as demand from energy-guzzling heavy industry slowed down and recovering hydropower generation took some demand off coal-fired power.

Coal Prices hold steady

June 21st, 2010

June 21, 2010
Spot prices for thermal coal in Qinhuangdao, China’s top coal port, remain unchanged from a week earlier, with demand high with the arrival of summer when there is high coal and power consumption.
Current Coal Coal with a calorific value of 5,800 kcal/kg (NAR) was quoted in the range of $114 to $116 US Dollars per metric tonne.
Coal with a calorific value of 5,500 kcal/kg was between $110 and $111 US Dollars.
There has been some return of hydropower generation following a drought a southwestern China which has eased power shortages some.

Cost of Coal in China will stay high

June 17th, 2010

China and India Coal Prices

The recent Coaltrans Asia conference in Bali showed Coal Output and Demand are very high. Coal demand is driven by increasing worldwide energy demands.
Coal prices will remain between US$90 and $100 per ton.
The Chinese government has set an ongoing cap on power prices to stem inflation.

China’s export economy export and domestic consumption will sustain high needs for coal.
Labor wage increases are occurring across China. Chinese workers are now making more money, this places greater importance on a desire to save on coal costs .
China is a net importer of coal. Energy savings techniques are very strongly encouraged to help offset rising coal prices.

We’ve also seen information on the topic here

Coal continues to surge upward in Asia

June 7th, 2010

Asia Coal Prices surge upward in China and India.

Thermal coal prices are expected to increase into the second half of this year due to  strong demand from Asian economies and a possible resurgence in Europe’s needs as well.

China and India will continue to lead Asian demand, with analysts anticipating a substantial increase in the amount being brought into both countries, along with its Asian neighbors coal  usage is steadily increasing.

Global coal prices will continue to be linked to Chinese demand. China could import as much as 170 million tonnes in 2010. If demand picks up in other regions, it will put pressure on the China’s supply chain.

India, the world’s fastest growing coal importer will also be placing huge demands on the supply chains.