Global demand growth in the cost of production increased coal prices . will rise
World coal demand growth, especially the huge growth in demand in Asia will increase prices. Th China International coal Conference held a few days ago, United Kingdom Argus Asia Pacific General Manager Jason. Phil said.
, and Phil thought, demand, supply, and environmental protection, as well as freight is the main factor influencing the global coal prices and China. The future North-South us demand will grow steadily, demand stabilising in Europe, while demand growth in Asia will be the major trends in global markets. From the supply side, China’s coal exports have fallen from 60 million tonnes in 2005 to 45 million tonnes in 2007, reduce pressures on prices of Chinese exports. In addition, but also European taxes on carbon-containing substances, as well as the United States increases charges on emissions of sulfur dioxide, carbon monoxide, and . other environmental requirements on coal price increase. Phil also pointed out that the coal shipping cost increases, especially its shipping cost may be more than the price of coal itself, will have a huge impact on coal production costs.
, and Phil thought, generating a huge growth in demand, as well as from coal to liquid fuel and DME (dimethyl ether) projects may have additional requirements, would make it China’s increased demand for coal. He suggested that, to accelerate the development of infrastructure construction in China and the adjustment of domestic electricity market structure, including by encouraging efficient use of natural gas and coal, or raising the price of electricity is the best way to reduce the impact on the international coal market.
Coal imports from China more than 5 million tonnes of thermal coal imports from 2005 to 2007, more than 13 million tons. The fastest growth in imports from Indonesia, from 2005 of more than 2 million tonnes to 11 million tonnes in 2007, from Russia and Australia’s imports fell, Phil said, Russia and Australia of high coal prices are major causes of reduced its imports.