China's thermal power plants may suffer more losses this year as rising coal prices in the global markets will drive up domestic coal prices, said a report released on Friday, February 25 by the China Energy Research Society (CERS).
"The economic recovery around the world, especially in emerging economies, will boost coal demand and push up coal prices, and cause coal prices in China to rise," said the report.
The CERS forecast that domestic prices of coal for power generation will this year rise by around RMB 30/mt ($4.5/mt) in comparison with last year, slashing the profitability of thermal power producers. China's thermal power plants suffered an aggregate loss of RMB 32.9 billion ($5 billion) in 2010, according to the China Electricity Council.