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China's coal export prices to rise in line with Australia

(Agencies)
Updated: 2008-04-11 14:25

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

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

In recent negotiations, Japanese power plants agreed to a $135 per ton price rise with their Australian coal suppliers, up 143 percent compared with last year.

"Normally, long-term supply contract prices between China and Japan will be settled according to the prices set by Japan and Australia," Huang was quoted as saying.

"Once the price is set, China will decide the export prices to other countries with reference to that price (agreed by Japanese customers)," he added.

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