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  • Coking coal prices seen up 5%-10%
    Date: 19-Apr-2007 Sources: (Shenzhen Daily)

    CHINA Coal & Coke Holdings Ltd., a unit of China's No. 2 coal maker China Coal Energy Co. Ltd., said Tuesday it expected coking coal prices to rise 5 to 10 percent this year.

    The country's coking coal production is forecast to increase to 300 million tons this year from 280 million tons, China Coal & Coke's chief executive and president Hua Zugui told reporters on the sidelines of a conference.

    China's coal exports in 2007 are likely to stay at last year's level of 14.50 million tons, he said.

    'There is room for China to export coking coal as long as the free on board (FOB) price stays below US$250 per ton,' Hua said.

    Chinese coal exports slid nearly 30 percent in the first two months of 2007 as high domestic prices encouraged miners to sell more at home to fuel the country's roaring economy.

    He estimated in the next three to five years, China's coking coal industry would consolidate with a large number of small and unsafe production capacity being closed down.

    The country's coking coal production recovered significantly in the first two months of the year to 46.92 million tons, up 23 percent from the same period last year.

    The FOB prices stay at around US$190 per ton.

    China is the world's top coal producer and consumer.



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