Chinese coal prices discussed
China's 2005 Coal Ordering Conference, which aims to secure coal supply to power plants in the country for the next year, started last week.
Coal and power companies are expected to discuss coal prices during the conference. Coal companies demand big increases in the prices, while power companies refuse to buy at higher levels.
Government's new plan allows power prices to change in line with coal prices. This plan will be implemented after the Coal Ordering Conference.
Rising coal prices in
China have decreased profits of power generation companies. Moreover, coal prices in
China are expected to increase in 2005 due to certain problems, such as insufficient transportation and coal mine accidents, which reduced
production.
China's coal
production is expected to reach 2.05 billion tons in 2005.
China's export quota for coal was 80 million tons in 2004, which will remain the same in 2005.