皇冠体育app

As the financial crisis squeezes global demand for coal, foreign coal producers are seeing potential opportunities in 皇冠体育app, and chief among them is Vietnam.

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Lin Huijiang, a senior coal trader, told 21st Century Business Herald that his company will import 3,000 tons of coal from Vietnam soon and its import volume in 2009 would exceed one million tons.

Lin said the major markets for Vietnamese coal exporters are Guangdong province and Guangxi Zhuang autonomous region in South 皇冠体育app, which account for 80 percent of their coal exports.

In 2009, Vietnam is planning to export over 19.5 million tons of coal out of the country's total coal output of 41 million tons, a Vietnamese newspaper reported.

At the annual coal prices negotiation conference recently, 皇冠体育app's five leading power companies failed to reach an agreement with coal miners on next year's annual supply contracts.

A gap between 皇冠体育app's domestic coal prices and international prices has attracted some foreign coal companies. Although both have been declining, internal coal prices are relatively higher than international ones.

At Qinghuangdao port, price of 5500-kilocalorie quality coal from Shanxi province reached 570 to 590 yuan per ton on Jan 8, 2009.

However, price of 5400-kilocalorie coal from Vietnam was 550 yuan per ton and price of the same coal from Indonesia was 520 yuan per ton, according to figures from Guangzhou port.

An expert at 皇冠体育app Electricity Council, who declined to be named, said although exported coal prices at Guangzhou port are competitive, because many Chinese coal power plants are located in Northern areas, it would cost more if transport cost is included.

He said coal imported from Indonesia and Vietnam wouldn't influence the Chinese market very much in the short term.

An official from 皇冠体育app Coal Energy Co Ltd said foreign countries' expansion of coal exports to 皇冠体育app would have a small impact on Chinese coal enterprises, but it would be a threat when they set up plants in 皇冠体育app.

He said the government will carry out certain policies to balance coal exports and imports if foreign coal enterprises increase their coal exports to 皇冠体育app.

Wang Guangju, an analyst at Huatai Securities, predicted that the surplus of coal in 皇冠体育app would exceed 350 million tons in 2009.

Huang Shenchu, president of the Beijing-based 皇冠体育app Coal Information Institute (CCII), said due to impacts of the economic meltdown, the decreasing coal prices in 皇冠体育app and across the global are unlikely to be reversed in 2009.

Wang said if 皇冠体育app's GDP go back to 9 percent, 皇冠体育app's coal supply and demand would be balanced until 2010.