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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2099)	12/18/2003 1:51:30 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China Coal Supply Shortfall Boosts Asian Power Costs By Edgar Ang Of DOW JONES NEWSWIRES SINGAPORE (Dow Jones)--South Korean and Taiwanese power generators have been obliged to buy expensive alternative fuels as a result of a shortage in coal supplies from China, power generators in both countries said Thursday. ADVERTISEMENT China's inability to export as much coal as usual means the power companies are turning to more costly coal from Indonesia and Australia, or buying more fuel oil to produce electricity, thus boosting their overheads. Chinese coal suppliers defaulted on their December and January spot supply contracts with Taiwan Power, forcing the company to turn to fuel oil, a Taipower official said. "It will definitely increase our fuel cost, but we don't know by how much yet because we need to find out exactly much fuel oil we need to use, depending on domestic power demand," the official from the state-owned company said. "The Chinese coal contracts that were defaulted were mostly for spot cargoes which we bought around $25-$26/ton," he said. The spot price for Chinese coal has shot up by about 60% or $15/ton free-on-board Qin Huang Dao, to about $39/ton since August because of the sharp reduction in Chinese coal supply and high local demand. China is suffering from a coal shortage due to a combination of big increases in domestic power demand, the closure of many small mines, mine safety issues and transport logistical problems. Australia And Indonesia To Benefit sg.biz.yahoo.com