March 03,2009

Chinese Coal Prices Up Over Safety Crackdown

By CSC staff, Shanghai

An accident on February 22 at the Tunlan Coal Mine in Shanxi Province, China’s major coal producer, killing 78 workers, seems to have gotten the attention of safety officials. The Shanxi provincial government moved swiftly after the accident and has launched a one-year safe-production campaign, which is already boosting coal prices.

The Shanxi government ordered a review in key State-owned and local coal mines in the province. Yesterday in Qinhuangdao port prices for 5500-kcal coal and other power coal types rose by 30 yuan per ton, or 5%, from around 580 to over 600 yuan per ton. Figures from Tianjin and Jingtang ports also indicate rising power coal prices.

Tunlan Coal Mine, which is located in a suburban area of Taiyuan, the provincial capital, is a subsidiary of Shanxi Coking Coal Group, whose coking coal production accounts for 65% of China’s total.

Officials in the Shanxi Safety Supervisory Department declared that coal mines with safety problems would be shut down for rectification, and that the government would reinforce supervision over coal mines with safety licenses.

The State Administration for Work Safety also ordered shut down small coal mines without safety guarantees and reinforced safety management over state-owned coal mines. Governments in Beijing, Inner Mongolia and Shaanxi also ordered safety reviews of coal mines in local areas.

Overseas power coal prices all declined yesterday. 6300-kcal power coal on the European ARA market slumped by $11.02 per ton to close at $65.32 per ton. The price for 6000-kcal power coal in Richards Bay, South Africa, dropped by $11.70 per ton to $64.55. 6000-kcal power coal in Newcastle Australia sold for$60.8 per ton, a drop of $7.03.

 

 

1034
Name:
Company/Institution:
Country:
Click to Get New TextCan't read this text? Please click the image!
Please verify the text in the image.