China's coal price likely to touch bottom in April

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Mar 2009

China's coal price is likely to touch the bottom in April of 2009 on the ground of decreasing international coal price and production resumption of small coalmines, predicted by analyst with Orient Securities. The specific price is expected to be determined by the contractual coal price for 2009. The prolonged coal contract talk seems has turn into the game among the government, coal and power enterprises. The silence of Chinese government indicated that the government would like to solve the problem through market mechanism.
Affected by declining international coal price, the contractual coal prices between different countries have shown decreases at different levels. The analyst predicted that the international coal price has touched the bottom at about 60 US dollars per ton.
Meanwhile, the production resumption of small coalmines and increasing coal inventory at major ports also imposed great pressure on domestic coal price.
CITIC Securities assumed that the emergence of expected bottom for domestic coal price would be affected by the implementation of resource tax, higher than last year's contractual coal price and hiking international long-term coal export price in 2009.

Source: ChinaMining