Last month, the National Development and Reform Commission (NDRC) issued a notice, asking some of China’s major coal mining players to keep contract coal prices steady.
NDRC said that prices for coal under annual supply contracts could not be changed, and coal miners must return any additional charges before the end of June if they have lifted contract coal prices. State-owned coal companies and industry leaders should lead the way in keeping contract coal prices steady.
According to China Coal Resource, the benchmark thermal coal price in Qinghuangdao Port for 5,000 kilocalories increased 9.1% to $96 per ton in late June 2010, compared to $88 per ton in late April 2010. In the same period the price for 5,500 kilocalories of thermal coal rose to $111 per ton, up by 7.8% from $103 per ton.
WenXiang Ding, president and CEO of China Energy, said: “We do not anticipate that the recent requirement by the NDRC will have a material impact on China Energy, since we sell on the spot coal market and have not entered into any annual contract with independent power producers. Year to date, we have not experienced any pressure on our coal sales prices.
“Furthermore, we have maintained a steady and multi-faceted customer base, including coal fired power plants, heating plants, steel manufacturing and metallurgy of non-ferrous metals.”
