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China Holds Meeting on Coking Coal Price Caps, Officials Say
in-en.com  2008-7-25 14:06:27  

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China's National Development and Reform Commission, the country's top planner, held a meeting Wednesday to discuss price caps on steel, coking coal and coke to help manufacturers cope with rising costs, two officials said.

China Iron and Steel Association, China Coking Industry Association, producers and manufacturers met Wednesday in Beijing, the industry officials said, declining to be identified because the talks are private. There was no agreement, they said.

General Motors Corp. and China State Shipbuilding Co. are battling rising materials costs as inflation in China reached 7.9 percent in the first half. China yesterday ordered a cap on prices of energy coal to help producers cope with costs as the country battles a sixth year of electricity shortages.

The planner, known as NDRC, have been asked to study capping coking coal prices, another official at the commission said, declining to be named because he isn't a spokesman.

The officials declined to name the producers who attended the meeting. Coking coal is used to make coke, which is an ingredient in steelmaking.

The price for hot-rolled coil, a benchmark product, has gained 51 percent in the past year, reaching a record 5,957 yuan ($873) a ton on June 5. Coking coal prices more than doubled this year to as much as 2,500 yuan a ton.

China's economy has grown more than 10 percent annually for the past five years, fueling a building and consumption boom.


 
Author:Bloomberg  From:Bloomberg  Edit:steven
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