China's Coal Miners to Decide 2009 Term Price

China's coal miners and end users are expected to meet on 21 December to decide next year's term prices, an official from the China Coal Transportation and Distribution Association said on Tuesday.

The meeting will last seven days, where some coal miners and end users who have come to an initial agreement, will report the results to the government and discuss rail transportation plans with the railway administration.

Some coal miners and end users will be engaged in individual talks to settle next year's term prices, the official said.

China suffered from severe power shortages in the summer, partly caused by a shortfall in coal, but the market is now abundantly supplied and prices have tumbled since late summer.

China's coal supply is expected to be abundant in 2009, but overall in balance with demand, the National Development and Reform Commission, the country's top economic planning body said last week.

Next year's term prices are expected to stay flat, or rise marginally from this year's, traders and analysts said.

"The term prices next year will rise slightly, but will still be lower than today's spot prices," said Li Chaolin, an industry analyst based in Beijing.

By Rujun Shen, Reuters