Vinacomin looks to up coal price

The Viet Nam National Coal and Mineral Industries Group is pushing to raise prices for coal that’s used in electricity production.

Vinacomin, the nation’s largest coal producer, said the price of coal used in power production was previously proposed to be sold at 90 per cent of the export price. However, while both exchange rates and other input costs had already increased, the current selling price of coal used in electricity production was at just 60 per cent of the export price.

At the beginning of April, the prices of coal used in the production of cement, paper and fertiliser increased by 20-40 per cent. The proposal to further raise prices was also based on rising interest rates and global coal prices.

Before the price hike in April, coal used in cement, paper and fertiliser production had been sold at just 50 per cent of the export price.

According to Vinacomin, coal consumption in the first four months is estimated at 13.8 million tonnes, of which 10.1 million tonnes were sold on the domestic market, an increase of 33.6 per cent year-on-year.

Vinacomin has sent its proposal on a new pricing structure to the Ministry of Industry and Trade. — VNS

Tags: coal prices, Vinacomin