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China coal miner talks with power producers fail

China coal miner talks with power producers fail

Chinese coal miners and power producers failed to reach full agreement on prices in weeklong talks over supply contracts for next year, reports said Monday.
The country's top five power producers sought a 50 yuan ($7.30) per ton price cut, while the miners were demanding increases, the financial newspaper Caijing and other reports said.
The talks, held in the southeastern city of Fuzhou, ended with a quarter of the 846 million ton annual quota for coal to be transported by railway _ mainly due to go to electric utilities _ still untaken, the reports said.
Negotiations on coal for other industries were successful, Caijing and the China Securities Journal reported.
China relies on coal for about three-quarters of its electricity generation, and it was unclear if the failure to reach an agreement would have any significant impact on future power supplies.
In past years, China has faced chronic shortages partly due to shortfalls in coal supplies in some areas. But the economic slowdown has helped eased demand.
Share prices of power producers surged Monday in Hong Kong trading.
Huaneng Power International jumped 6.1 percent to 5.40 Hong Kong dollars, Datang gained 9 percent to HK$4.10 and Huadian Power gained 1.7 percent to HK$1.77.
China Shenhua Energy, the country's biggest coal miner and also a major power generator, gained 1.7 percent to HK$15.48.
Earlier this year, power generators let coal stocks run low rather than replenishing them at high market prices. The government imposed price controls on coal supplies and ordered suppliers to comply, while raising electricity rates to help rebalance costs and prices.


Updated : 2021-03-08 15:40 GMT+08:00