Chinese thermal coal producers are unlikely to oppose Glencore International Plc’s plan to combine with Xstrata Plc because the nation’s supply of the fuel is diverse, said the China Coal Transport and Distribution Association.
China’s coal imports were near November’s record high last month, and its foreign coal purchases increased 11 percent in 2011, according to data from the China Coal Transport and Distribution Association.
Power-station coal prices at Qinhuangdao port, a Chinese benchmark, fell for the first time in three months after stockpiles of the fuel surged and the government called for stability in the cost of commodities.
Chinese coal for generating power is at its cheapest in eight months relative to Australia’s after the government in Beijing froze prices to curb inflation and the worst flooding in Queensland since 1974 disrupted imports.
A cold front moving across China may damage crops and boost demand for heating fuels, potentially boosting coal prices trading at their highest level in more than two months. Cotton jumped to a record.