June 2006

Trends and Resources

HP Impact: HPImpact: New coal pricing policy in China off to lumpy start

Coal in China has had two types of prices since 1993. One is the market price, which applies to coal bought and sold in the market. The other is the price for coal that is used for power generation, w..

Weirauch, Wendy, Hydrocarbon Processing Staff

Coal in China has had two types of prices since 1993. One is the market price, which applies to coal bought and sold in the market. The other is the price for coal that is used for power generation, which is subject to government regulations. The prices of power-coal are lower than the market prices for non-power use, because the coal is supplied only to power generators, due to the fact that the government controls the electricity prices. The average price of power-coal was $16.73/metric ton in 2003, $19.63/ton in 2004 and $26.41/ton in 2005, according to an analysis from FACTS Inc. (www.factsinc.net). These prices were all lower than the price of market coal, even though they continued t

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