Coal prices in China may rise 5 percent in 2012 and 2013 and imports may increase 15 percent a year because of supply tightness, “strong” industrial demand and reliance on thermal power, according to UOB-Kay Hian Ltd.
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.
The “silent” removal of a 40 percent tax on China’s coke exports, coming after the World Trade Organization ruled against the practice, will drive up production and boost the nation’s coal imports, analysts said.
Zijin Mining Group Co. , China’s biggest gold producer, planned for two big foreign acquisitions this year. Chairman Chen Jinghe instead is saddled with regulatory probes and a plunging share price after the industry’s worst environmental accident in years.
Coal producers including China Shenhua Energy Co. rose in Shanghai trading as halted shipments from Queensland because of flooding spurred speculation that reduced supplies will boost Chinese prices of the commodity.