Suppliers aim for 8% coal price rise

Coal prices may rise 8% in 2006 after buyers and sellers were given the freedom to negotiate their own contract prices for the first time, the Standard of Hong Kong reported, citing sources involved in the contract discussions. Coal producers were demanding an average increase of US$2.48 per tonne, according to Xie Juchen, whose Zhong Neng Power Industry Fuel buys coal for half of China’s power plants. The National Development and Reform Commission removed the limit on coal prices on December 27, having introduced a set trading band earlier in the year. Coal price talks are set to continue this week after the buyers and sellers failed to reach agreements.