Coal prices to be bullish next year on China factor
Monday, 21 December 2009
BEIJING, Dec 20 (Commodity Online): With Chinese economy rebounding and demand for coal warming up, coal prices are set to go northwards, according to Himfr.com, one of China's leading B2B search platforms. The price of steam coal is rising and the trend will continue, Himfr.com said.
Secondly, the price of coking coal is rising as well. Coking coal in Shanxi, at 1,250 yuan / tonne, has been basically maintained a stable price since June. However, the price of coking coal is expected to rise due to optimism about next year's iron and steel industry.
Finally, the price of anthracite is basically stable. However, its upward momentum is slightly weaker than coking coal. The reason is that the price of anthracite has just recently stopped being stable. Overall, in 2010, under the influence of supply and demand conditions, coal price may be higher than expected, HImfr.com said.
In 2010, supply changes will be due to three factors, namely, small mines resuming production, large mineral expansion and net imports of major mineral resources. It is still fairly uncertain whether small mines will resume production, and large mines will not expand very much, and imports are determined mainly by the impact of domestic and international coal prices. As the global economy recovers, it is expected that next year's price spread will be narrower than this year's, leading to a decline in import volume year on year. The incremental coal supply in 2010 is expected to be around 8 per cent.
Secondly, the price of coking coal is rising as well. Coking coal in Shanxi, at 1,250 yuan / tonne, has been basically maintained a stable price since June. However, the price of coking coal is expected to rise due to optimism about next year's iron and steel industry.
Finally, the price of anthracite is basically stable. However, its upward momentum is slightly weaker than coking coal. The reason is that the price of anthracite has just recently stopped being stable. Overall, in 2010, under the influence of supply and demand conditions, coal price may be higher than expected, HImfr.com said.
In 2010, supply changes will be due to three factors, namely, small mines resuming production, large mineral expansion and net imports of major mineral resources. It is still fairly uncertain whether small mines will resume production, and large mines will not expand very much, and imports are determined mainly by the impact of domestic and international coal prices. As the global economy recovers, it is expected that next year's price spread will be narrower than this year's, leading to a decline in import volume year on year. The incremental coal supply in 2010 is expected to be around 8 per cent.