CHINA Shenhua Energy Co, the nation's biggest coal supplier, will accept a contract price of US$135 a metric ton from Japanese buyers for shipments in 2008 after global prices climbed to records.
''US$135 a ton for long-term thermal coal contracts will be very good as that's higher than current market prices," Vice President Wang Jinli said yesterday.
The US$125-a-ton price agreed between Japan and Australia will be a benchmark for China, said Jing Tianliang, the chairman of China National Coal Group, the country's second-biggest coal supplier by sales.
The monthly Newcastle thermal-coal price index, an Asian benchmark assessed by globalCOAL, has risen 41 percent this year to US$125.56 a ton in March, according to Bloomberg News.
Prices climbed to records for five straight months ending February after heavy rains forced producers in Australia and South Africa to cut shipments.
"Given the shorter distance between China and Japan, compared with Australia and Japan, the prices of Chinese coal will be more competitive," Jing said.
Chinese producers have met with buyers in Japan "several times and formal talks will be held soon," he said.
Global coal prices could rise 10 percent this year, Shenhua's Wang said. Shenhua and China National Coal Group have been allocated an export quota of 13.1 million tons each this year by the government, Jing said. Shenhua's coal exports will remain unchanged at 24 million tons this year, Chief Executive Officer Ling Wen said.
China, the world's biggest coal producer, became a net importer of the fuel for the first time in January last year as demand climbed after the economy expanded 11.9 percent, the quickest pace in 13 years.
Overseas coal shipments were 53.2 million tons last year, compared with the 70 million-ton export quota allocated by the government.