The temporary ease of energy conservation and emission reduction pressure is expected to more or less boost the country's coal demand.
Meanwhile, the government control in contracted coal price for 2011 seems not work out as expected especially when China's coal price is highly market-oriented. Even if coal price is under control, the quality of supplied coal could hardly be guaranteed.
Besides, the international coal price is maintaining a strong momentum of rising on recovering international economy and energy demand, especially robust demand in Asian emerging markets.
China's domestic coal price is expected to follow the international coal price hike in the second half of 2011, said CERS in the report.
CERS noted that the surge in delivery price for contracted coal may further expand losses of thermal power enterprises in 2011.