Thursday, January 27, 2011
BEIJING,(Xinhua News Agency)
China domestic coal price ha s been capped stable while coking coal price kept surging following th e international coking coal price hike. Experts predict that China's c oking coal price is likely to see the second uptrend of this year in March or April.
The National Development and Reform Commission (NDRC), China's top economic planner, only capped the price for contracted coal for 2011, but the pricing of spot coal, coking coal, and coke are fully market-oriented.
Since the beginning of this year, China's coke producers like Shanxi Xishan Coal and Electricity Power Co., Ltd (000983.SZ) and Guizhou Panjiang Refined Coal Co., Ltd (600395.SH) have raised coke price at least by 100 yuan/tonne.
It is learned that the flood in Australia has severely blocked coking coal supply to global market. Spot coke price of Australi a has exceeded 300 US dollars/tonnes, and is expected to reach 400 US dollars/tonne, hitting a new high since 2008.
On the coming of spring, China's domestic steel productio n will return to full operation, plus the peak demand for steel, cokin g coal demand would accordingly witness rapid growth at that time.
China's domestic steel makers are looking for alternative supply of coking coke. They have shown that they would increase purch ase of coking coal in domestic market if coking coal imports could not be guaranteed. In this sense, China's coking coal price is likely to hike again within a range of 100-150 yuan/tonne.
Besides, China International Capital Corp. noted that tim e is needed for Australia, the major coal expertor in the world, to re sume normal coal production and transportation. As the Oceanic country will enter rainy season soon, which usually an off season of coal pro duction, the international coking coal price would go even higher, resulting in more hikes of China's domestic coking coal price. (sourced:xinhua.org)