It is reported that China"s coal exporters has cut the coal export price to attract overseas buyers and deplete the coal export quota for 2008 on account of decreasing spot coal price and depressing domestic demand.
According to information from South China Coal Trading Center in Guangdong province, the export price for coal with 5,800 kilocalories in calorific value per tonne has dropped by 6% from last week to CNY 740 to CNY 750 per tonne down from 31% from the peak reported in July.
Due to the sluggishness of domestic coal market, coal exporters have been forced to turn to the overseas market. Chinese coal exporters have shown strong will to export for fear that the coal price in 2009 may dive to the lowest level as in 2007.Though the coal export quota for the rest months of 2008 stays relatively abundant, the coal export volume is unlikely to increase by a large margin.