Regional Coal: China to boost coal imports from Vietnam

Chinese companies are intensifying import of Vietnamese coal amidst Vietnam's plan to raise prices of coal products in 2006, according to the Trade Information Centre under the Vietnamese Trade Ministry on Monday as quoted by asiapulse.

The Chinese firms are estimated to import some 1.5m tons of coal via border gates this quarter, mainly to fuel power plants in some of China's southern localities.

Five large, 11 medium and many small-sized enterprises from China frequently import coal from Vietnam, the centre said. Vietnam plans to sell some 14 million tons of coal overseas this year, up 32 per cent against last year, of which 9 million tons are expected to go to China, said the country's biggest coal producer, Vietnam Coal Corporation (Vinacoal).

Vietnam is likely to increase prices of coal products by 31-57 per cent in the domestic market in 2006, mainly due to the rising production cost. "We're waiting for the government's approval to our price hike proposal. It'll be applied to coal products sold to power, cement, paper and fertilizer industries," the state-owned corporation told Xinhua recently, noting that its production cost is estimated to rise 15.6 per cent this year over last year.

The Vinacoal, which currently sells its products for average 27 US dollars per ton, plans to produce 30 million tons of coal next year. Vietnam is expected to exploit nearly 47.6 million tons of coal in 2010.(*)