China power coal contract price likely to rise by RMB30/t on delivery - Xinhua

China's coal price is expect ed to keep rising in 2011 and the actual delivery price of contracted coal for 2011 is likely to rise by 30 yuan/tonne due to less pressure from energy conservation and emission reduction measures and internati onal

coal price hike, said China Energy (OOTC:CHGY) Research Society (CERS) in a r eport made public recently.
CERS noted that China may relax measures on energy conser vation and emission reduction this year as the energy conservation and
emission reduction target for 2006-2010 was said to have been met in late 2010. The temporary ease of energy conservation and emission redu ction pressure is expected to more or less boost the country's coal de mand.

Meanwhile, the government control in contracted coal pric e for 2011 seems not work out as expected especially when China's coal
price is highly market-oriented. Even if coal price is under control,
the quality of supplied coal could hardly be guaranteed.
Besides, the international coal price is maintaining a st rong momentum of rising on recovering international economy and energy
demand, especially robust demand in Asian emerging markets.

China's domestic coal price is expected to follow the int ernational coal price hike in the second half of 2011, said CERS in th e report.
CERS noted that the surge in delivery price for contracte d coal may further expand losses of thermal power enterprises in 2011s .
China's social electricity consumption is estimated to gr ow 9.5 percent on year in 2011.