Power companies push coal imports into lower domestic prices

The first international coal Fair will be held soon after nearly four months of brewing, by the five major power group and China Resources Power jointly organized the first international coal meeting schedule finally settled, will be in the 12th session of the Beijing International Industrial Exposition May 23. "The participation of domestic enterprises are electric enterprises, in addition to the five Power generation group and China Resources Power, but also include Zhejiang Energy Group and Guangdong Electric Group, Anhui Group will also be willing to attend."　　"May 15, a power group responsible for coal procurement executives told reporters that steel companies, cement and other domestic coal demand enterprises are not included in the invitation list. At the end of December 27, 2008, 2009 Fuzhou Fair, in view of the huge differences in electricity prices, the six major power companies and large coal enterprises have not signed a year-round contract.　　In the ensuing January 2009, power companies began planning to convene the first international coal fair to raise the proportion of imported coal, while the pressure to coal companies through large-scale overseas purchases of coal was proposed. According to the above executives, the international coal fair, including Rio Tinto, Vietnam Coal mining industry group, including more than 20 international well-known coal enterprises, middlemen will attend, and the coal enterprises, middlemen are at the top of the industry, so "is not a retreat, everyone will take orders and prices out, not with an empty contract home　　”。 According to the latest data released by the General Administration of customs, 9.34 million tonnes of raw coal were exported in January ~ April, with exports falling 63% from a year earlier. Among them, the total number of imported raw coal amounted to 13.59 million tons in March, an increase of 20.1%.　　According to a report of the CIC Advisory Network, the six major power companies, including China Resources Power, have reached an agreement with foreign coal companies to import 16 million tonnes of coal in the first four months, and some coal has arrived in Hong Kong. As to how many tons of contracts will be signed at the International Coal Fair, the executive said the coal purchases were focused on coal companies in countries such as Australia, Indonesia, Vietnam and Russia, taking into account marine distance factors.　　The bottom line for the six power companies is 4 million tonnes, but as long as the price is right, "there is no Limit".　　He also said that the way to buy coal will be diversified, both to face the large coal suppliers of the collective negotiations-multi-appliance enterprise joint procurement, to a large contract to take a low price; there are also electric enterprises according to their own different coal demand, with individual coal business one-on-one negotiation method.　　The first international coal Fair was scheduled to be held in early March, after the electricity coal program is under discussion, the electricity companies have said that the need to wait until the electricity coal coordination plan to convene the order. Huangteng, an expert on international coal market trading, said the financial crisis to the overseas coal enterprises suffered a heavy blow, the past and new production capacity is nowhere to release, the domestic electric coal reds situation and higher coal prices to promote electricity companies overseas to buy coal, equivalent to revive countless overseas coal enterprises, "even if China's GDP growth this year only 5-6%, will also bring 3%　　About the demand for coal growth, which is a big market cake. " People in the industry interviewed by reporters said, based on the fact that the international coal price is lower than the domestic coal price, this year the domestic coal import quantity may surpass 60 million tons, far surpasses 2008 years 40.4 million tons. Shuai, chief analyst at Orient Securities, shrugged off the massive import of coal by electricity companies, thinking it was merely posturing for negotiations. In his view, China is the main coal-producing country, at the same time, one of the main coal consumption countries, China consumes 2.7 billion tons of coal each year, while the global coal trading volume, including China's exports, only 900 million tons, the final price is still at home, and "if the procurement of more external coal, will cause international coal price rebound, Finally with the domestic price of the same track.