The Sino Japanese Joint Coal Will Be Postponed For &Nbsp, And The Final Price Will Be $15 Higher Than That Of Japan And Australia.

The three month long Sino Japanese agreement on steam coal has been delayed again because of the Japanese earthquake.

"During the May meeting, the price raised by the Chinese side was about $150 / ton, and the Japanese side thought the price was too high. Therefore, it did not accept it and the negotiations would be postponed to the next round.

The current annual electricity coal contract between China and Japan will apply to the export pactions from April 1, 2011 to March 31, 2012, corresponding to the calorific value of 5800 kcal coal.

Prior to April 15th, in the 2011/2012 fiscal year of Japan and Australia, the power coal conference ended and the price was set at $129.85 / ton.

International coal trade expert Huang Teng analysis, taking into account the advantages of distance, in the past year, the Sino Japanese coal prices were generally higher than the price of the Japanese Australian Association, which was about 10 U.S. dollars / ton. "The Chinese side now gives an increase of about 20 US dollars / ton, based on the expectation that the international coal price will go up in the second half of the year", but the Japanese side obviously can not accept such a high increase.

The current round of Sino Japanese coal negotiations started at the end of 2010, and there have been rounds of consultations.

Prior to February, the Chinese Negotiating delegation originally planned to go to Japan in April 12th to hold the last meeting between China and Japan, but it was postponed because of the Japanese earthquake.

"Both China and Japan are not very worried at the moment."

Huang Teng frankly said that the current domestic situation is partial.

The Chinese enterprises participating in the Sino Japanese coal annual negotiations are still following the past tradition, which are mainly responsible for the two coal and Shenhua Group, while the main export coal suppliers such as Yankuang Group and Datong Coal Group will also be represented, but they have no right to sign the contract.

Japan takes the power company as the leading role. The negotiator is mainly dispatched by Tokyo electric power company to represent Japan's 11 main power enterprises.

The executives of coal enterprises believe that the European economy will gradually get out of the predicament in the second half of the year, and the demand for coal in Asia will become hot in the summer. Therefore, the Sino Japanese coal negotiations will be concluded at the end of June and early July.

In the 15 years of Sino Japanese coal negotiation experience in China Coal Group, Huang Teng said that late signing does not affect China's supply of coal to Japan. The supply of coal will be based on the 2010/2011 long contract price. If the new year contract rises, the Japanese will then make up the previous supply differential.

"But if it can not be reached at the end, it will be settled at the market price".

It is estimated that the price of US $15 / ton, or US $144.85 / ton, will rise by 25.4% over the price of US $115.5 / ton in 2010/20011.

Data show that the price of thermal coal in the Bohai rim has risen for 12 consecutive weeks, and the calorific value of 5800 kcal calorific coal is 885-895 yuan / ton, that is, 136.6-138.2 US dollars / ton.

In fact, China's coal exports have been implementing quota management, such as 80 million tons in 2005, and in recent years they have not used up quotas.

Since the coal exporting countries turned into a net importing country in 2009, China's coal exports have plunged 50.7% in recent years and 15% in 2010.

At the same time, Huang Teng believes that the Sino Japanese long coal negotiations mechanism is difficult to cancel in the short term, "because this is a friendly condition over 20 years and involves many historical factors".

It is reported that there is also a five - year coal supply contract for China and Japan (2011-2015 years).

The contract was expired in 2010.

"The annual joint and five year contracts should be signed together instead of separated."

Huang Teng analysis.