Coal price likely to increase next year

Government policies may cause the price of coal to increase slightly in the next year, said Guo Yuntao, director of the Development and Research Center of China Coal Industry, in an interview with CBN (in Chinese). The growth of fixed-asset investment in the coal sector has decreased by 13.5% in the first five months of the year, following central government efforts to curb the overheated sector. The approval of exploration rights for new mineral blocks was also suspended since February. An upcoming resource tax and inflationary pressures will also push the price up, though market demand and supply will keep balance as macro controls aim to restrain coal consumption in other industries, said Guo.