December 03, 2008

Chinese coal export prices to rise in line with Australia

The China Securities Journal reported that China's coal export prices are set to rise in line with the hikes negotiated by Australian suppliers and their Japanese consumers.

The report Citing Mr Huang Qing secretary to the board of directors with Shenhua, China's biggest coal producer said that Chinese coal companies customarily follow the prices set by Australia, the Asia-Pacific region's biggest exporter.

Mr Huang was quoted as saying that "Normally, long term supply contract prices between China and Japan will be settled according to the prices set by Japan and Australia. He added that once the price is set, China will decide the export prices to other countries with reference to that price."

Australia exports more than 200 million tonnes of coal to the region, compared with around 50 million tonnes exported by China last year.