Evergreen Energy Inc EEE

China Needs more Coal:

[no1coalking]

China suspends coal exports, sources say some deliveries likely Singapore (Platts)--28Jan2008 Severe coal shortages, caused by an elongated cold snap, has forced China's Ministry of Communications to suspend the export of coal during the Spring Festival period and the Two-Conference period, which concludes on March 15, the MOC said late January 25. However, industry sources close to the situation told Platts Monday that it is still quite likely that some Chinese coal will be delivered in Q1 2008 to Asian customers. Two Chinese coal traders said they have not received any official notice of a halt in thermal coal exports. One trader said it is likely that thermal coal exports will be cut in Q1 2008, but will not be completely stopped. "I don't think China will really stop exports. At most exports will be limited. And besides, there is no official confirmation yet about the order to stop exports," a Chinese coal trader told Platts Monday. Several Asian buyers have expressed concern about the reports that Beijing ordered a halt in exports, but have been assuaged when informed that Chinese exporters can be expected to deliver coal even on a limited basis. China's Ministry of Railways also issued a notice January 24 giving top priority to thermal coal transportation to such coal shortage provinces as Ningxia, Anhui, Hubei and Zhejiang. A Japanese power utility source told Platts that Chinese thermal coal buyers in Japan have been informed by industry group Japan Coal Development about reports on the website of China's rail transport authority about a halt in exports from February 1 to March 15. He said JCD is still trying to officially confirm the report as China Coal has not sent its Japanese customers an official declaration of non-deliveries from February 1 to March 15. A source in Taiwan said Chinese exporters have yet to officially declare plans not to deliver between February 1 and March 15, although the two companies, Shenhua and China Coal which export coal to Taiwan Power, Formosa Plastics and Hoping Power have verbally informed the Taiwanese companies about the government's decision to suspend exports over the aforementioned period. Prior to the announcement, an Asian coal buyer said it dispatched a panamax vessel to one of the Chinese coal ports to take delivery of contracted material. The vessel has already arrived in China, but it is not yet unknown whether coal is being loaded onto the ship. According to China's Ministry of Communications figures, the combined coal stocks at 355 key power plants with direct coal feeds from railroads total 19.68 million mt January 22, marginally above the warning limit of 18.90 million mt. Coal stocks at over 60 power plants are currently running at just over three days of power generation. On January 23 coal stocks at China's top three coal reception ports, namely Shanghai, Ningbo and Guangzhou, totalled 210,000 mt, 680,000 mt, and 1.43 million mt respectively, MOC figures show. Coal stocks at China?s top three coal despatching ports, namely Qinhuangdao, Tianjin and Huanghua stood at 'normal levels' the MOC said - at around 5.22 million mt, 3.14 million mt and 960,000 mt respectively. Heavy snowfalls across China have prompted officials to declare a level two weather alert with several provinces affected including Jiangxi, Hunan and Guizhou. Meteorological services have said that the blizzards are expected to last for the remainder of this week which is expected to stretch existing coal supplies even further. In light of the recent long stretch of bitterly cold weather which has resulted in much stronger coal demand across the country, the National Development and Reform Commission last week directed coal mining provinces to prioritize their coal shipments to power generators and also warned coal producers not to take advantage of the current shortages by hiking coal prices. The Spring Festival period runs roughly from the last two weeks of January 2008 to the first two weeks of February 2008. The Two Conferences (the National People's Congress and the People's Political Consultative Conference) usually runs from early March to mid-March 2008, China's coal export market can be expected to remain quiet for a total of 30-40 days, sources told Platts. In the January 25 release, the MOC directed that all seaports should give top priority to the transportation of such key materials as thermal coal, food and other agricultural products. It warned that if these orders are not followed, those in charge will face severe disciplinary punishment. For more news, request a free trial to Platts International Coal Report at https://www.platts.com/Request%20More%20Information/index.xml?story or subscribe now at