Coal prices will rise by 5% to 10% next year
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At the \"2007 China Coal Industry Summit Forum,\" Wu Chenghou, vice president of the China Coal Transportation and Marketing Association, stated that due to factors such as rising coal costs and continued growth in demand, Chinese coal prices are expected to increase by 5% to 10% next year. Shanxi Province **recently announced that, starting from October 1 this year, mining enterprises engaged in coal extraction within the province will be required to pay a deposit for the restoration of mine environments as well as a fund for the transformation and development of coal mining industries. With this, all three types of funds outlined in Shanxi’s policies for sustainable development have been introduced, which further increases the costs associated with coal mining ； Meanwhile, the reform plan for the resource tax has been approved by the Legal Affairs Office of the State Council, and its introduction is just around the corner ； Coupled with the continuous increase in coal demand driven by China’s economic development, these factors will all push up coal prices next year. Wang Jinli, vice president of China Shenhua Energy Co., Ltd., who attended the meeting, said that it is currently a period when there needs to be coordination between coal production and transportation; the overall supply of coal is tight, which will lead to an increase in prices. He expects coal prices to rise by about 10% next year, with thermal coal potentially seeing an even higher increase.
The direct result of rising coal prices is an increase in the prices of other products in the national economy, which can even lead to inflation!
There’s nothing to do about it – an increase in the prices of basic necessities inevitably leads to a rise in the prices of other products as well. It’s all the fault of oil:@
Won’t our company soon have little to no profit left? Two years ago, the cost of electricity increased by 2 cents per unit, which reduced profits by 30 million. If coal prices rise by 5%, amounting to 2.5 million tons per year, profits will decrease by around 20 million. The remaining profit margin is thus getting smaller and smaller.
An increase in coal prices inevitably leads to higher prices for other products and raw materials, raising corporate costs and increasing the financial burden on people. . . . . Bitter
Anyway, everything is getting more expensive these days; money is becoming less valuable. So guys, you need to spend more money
As long as this cancer of real estate remains unresolved, inflation cannot be brought under control!