BEIJING, Dec. 17 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, forecasts coal prices. The economy continues to rebound, and demand is gradually warming up again; in the future coal prices still have great potential to rise.
First of all, the price of steam coal has been going up; in the future this trend will continue. Second, the price of coking coal is rising as well. Coking coal in Shanxi, at 1,250 yuan / ton, has been basically maintained a stable price since June. However, the price of coking coal is expected to rise due to optimism about next year's iron and steel industry. Finally, the price of anthracite is basically stable. However, its upward momentum is slightly weaker than coking coal. The reason is that the price of anthracite has just recently stopped being stable.
Overall, in 2010, under the influence of supply and demand conditions, coal price may be higher than expected.
In 2010, supply changes will be due to three factors, namely, small mines resuming production, large mineral expansion and net imports of major mineral resources. It is still fairly uncertain whether small mines will resume production, and large mines will not expand very much, and imports are determined mainly by the impact of domestic and international coal prices. As the global economy recovers, it is expected that next year's price spread will be narrower than this year's, leading to a decline in import volume year on year. The incremental coal supply in 2010 is expected to be around 8%.
As for the demand side, as the economy pick up and demand for electricity increases, it is expected that future demand for coal power plants will steadily rise; as the international iron and steel capacity utilization rises, the steel industry's future production capacity will rise as well, leading to increased coal demand. Himfr expects that in 2010 the demand for coal will increase by 8.5% or so.
Thus, due to the increase in demand, and sluggish supply growth, Himfr expect that in 2010, coal prices will continue to rise.
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