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S. Korea to buy coal from China for US$85-90/t in 2010

Published: 19 Nov 2009 00:39:05 PST

Nov. 19 MetalBiz--Head of one S. Korea power company on November 18 unveiled that S. Korea’s power companies may purchase coal from China at the contract price of more than U.S.$85-90 per ton in 2010.

The management said that this year power company bought coal with 6,080 kilo calories per kilogram at the price of U.S.$82 per ton.

He added that if in March of 2010, that is, before the annual contract price talks, other Asian countries’ freight and coal price continues rising, at that moment, China only increases the price.

He also claimed that it is expected that China’s purchase volume in 2010 will be same as the 2009 level, and therefore China’s price is still higher than the price of Australia and Indonesia.

He stated that S. Korea’s coal import contract price is usually line with Japanese importers’ price.

According to China Coal Transportation and Distribution Association (CCTD)’s data, till November 16, Datong’s superior-quality mixed coal with 5,800 kilo calories per kilogram, is quoted by Qinhuangdao at the spot benchmark price of 680-700 yuan per ton, increasing by 17% than that in the beginning of 2009. The warming-up demand in power and industry pushes up coal price.