An insider from the China Coal Trade & Development Association (CCTDA) divulged that an almost 10 percent increase in coal price is in the works, from 30 yuan per ton to 40 yuan.

Such a huge increase will trigger an ensuing electricity increase. Yet facing the growing inflationary pressure, the National Development and Reform Commission gave no hints of an electricity price adjustment.

Conventionally, the power companies will simultaneously bolster electricity prices to offset higher costs. Securities analysts reflected that the higher coal price would give a boost to the listed coal companies. With no hints of an electricity price hike, the electricity industry might feel a pinch.

For more details, please read the full story in Chinese. (http://www.dfdaily.com/node2/node1430/userobject1ai46883.shtml)

(China.org.cn December 18, 2007)