Coal prices will rise by 5% to 10% next year

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Coal prices are set to rise by 5%–10% next year. At the “2007 China Coal Industry Summit Forum,” Wu Chenghou, vice president of the China Coal Transportation and Marketing Association, said that due to factors such as rising coal costs and continued demand growth, Chinese coal prices are expected to increase by 5%–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 fees 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 implementation 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 currently it is 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 likely to see an even higher increase.