China hikes electricity price

SteelOrbis Shanghai The National Development and Reform Commission (NDRC) increased electricity unit rate prices by 2.52 fen (0.31 cent) as of May. The price hike aims to compensate the loss the power plants have encountered due to the increase in coal prices since June 2004. The increase is currently effective for industrial and commercial segments, while whether the prices for agriculture and rural areas will increase remains unclear. The hike in power prices leads to a slight increase in the production cost of iron and steel industry.