State policies will give producers the basis to charge more
Mainland coal prices may rise next year on the back of increasing costs for mining rights, environmental protection, safety measures and staff benefits, according to a research official.
Qian Pingfa, chief of the industrial economics research department of the State Council's Development Research Centre, said costs were expected to rise 50 to 70 yuan per tonne of coal produced.
This compares with the industry's 303.50 yuan a tonne average coal selling price in the first 10 months this year, according to Chen Qi, vice-director of the China National Coal Association department of industrial co-ordination.
Miners and power companies in March settled this year's contract price 5 per cent higher than last year's after almost three months of talks.
The power sector accounts for 53 per cent of China's coal sales, and coal feeds 70 per cent of the nation's energy consumption.
'As demand and supply are largely in balance, China's coal prices are largely affected by railway capacity and government policies,' Mr Qian told the China Coal Summit yesterday.