News

January 17, 2010

The Week In Alternative Power: China Sets The Coal Markets Alight, And George Soros Wades Into The Climate Change Debate

By Sally White

China lit a fire under the price of thermal coal over the past week, as the iciest weather for 60 years exacerbated its swing from exporter to importer. The price of thermal coal rose to above US$100 a tonne. Importers were said to be buying from as far afield as Colombia, as over ten per cent of power plants in China were left with just a couple of days of stock and many factories closed. The worst snow was in the north of the country, which is also where the bulk of the country’s coal mines are. Production was severely disrupted.

UBS analysts said the rally in the price of thermal coal could continue right through the first quarter, as demand at China’s electric power stations is expected to rise further. Indian demand is also climbing. Meanwhile the shipping queue at Australia’s largest coal exporting port reached a two year high, and these bottlenecks helped push spot prices to US$105 per tonne, up 60 per cent, but still well below the all-time high of US$210 hit in July.  

In Australia analysts at...