31 Dec 2010 08:20

Annual coal contract volume exceeds NDRC target

Shanghai. December 31. INTERFAX-CHINA - Chinese companies signed annual coal contracts on Dec. 31 involving 1.39 billion tons, exceeding the 932 million-ton target set by the National Development and Reform Commission (NDRC), according to the statistics from the China Coal Transportation and Distribution Association (CCTDA).

Liang Feng, deputy manager of Shanxi Lu'an Group's Jingtang Port sales branch, and Qi Bao, with Shenhua Group Corp.'s sales management department, told Interfax that coal firms have completed signing contracts at 2010 price levels as per the NDRC's requirement. Average 2010 contract prices stood at RMB 520 ($78.55) per ton.

Dong Yueying, secretary general of the CCTDA, told Interfax that the association will invite coal companies to cooperate in deciding how many of these contracts will be part of the "key annual coal contracts," which are decided by the government.

Coal railway transportation volumes are typically set by the government each year.

According to Dong, the volume involved in the key annual coal contracts is not expected to exceed the 932 million-ton target.