Posts Tagged ‘Cost of Coal’

China Energy Shortages Summer 2011

July 6th, 2011

China’s Electricity Council said the country will likely face power shortages of 30 million kilowatts this summer so the government has moved quickly to put restrictions in place as the peak season approaches. Big industrial provinces such as Guangdong and Zhejiang are already scaling back power consumption. These reductions are likely to hinder aluminum, cement, zinc and steel output.

Coal powers the Chinese economy. The country is the world’s largest consumer, gobbling up nearly half of the world’s coal consumption in 2009. Coal accounted for 71 percent of China’s energy in 2008—more than three times the United States’ share. The Electricity Council estimates that the country’s coal demand will reach 1.92 billion tons in 2011, up nearly 10 percent from 2010.

The Bohai-rim Steam-coal Price Index, a major indicator of China’s costs of coal for power generation, hit a new high of 808 yuan per ton in the week to April 27 since the index was launched in October 2010, according to the website China Coal Resources.

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