China, the world''s largest producer and consumer of
coal, will set up its first coal exchange in the northern
state council, or the cabinet gave its nod for establishment
of Taiyuan Coal Exchange in Taiyuan, capital of the
coal-rich province. The first stage of the project will
need an investment of one billion yuan ($130 million).
Chinese authorities plan to expand the existing Taiyuan
Coal Trading Market for creating the new exchange. This
would facilitate trading of around 500 million tonnes
of coal annually in the initial stage, a local coal
exports 80 million tonnes of coal annually, ranking
third in the world, while its coke exports account for
57 per cent of the global trade volume.
modern market-based coal trading system would also allow
marco-economic control of the market in the next three
to five years.
center would help form an integrated national coal market
and build a national pricing system -- the "China
price", which is likely to impact the pricing of
the world coal market in the future, reports quoting
Ouyang Yexin, general manager of the Taiyuan Coal Business
coal business center will sell 800 billion yuan ($104.4
billion) of coal per year, and the centre is expected
to become one of the most important exchange markets
in the world, on par with New York and London oil markets
to the plan of Shanxi government, China Shanxi Coal
Business Center will complete its development planning
before June, and construction is expected to start in
new center will have an internet system to support online
business and e-banking, providing a convenient way for
clients to do business transactions, an official said.