Coal exports decline over 17 pct in first six months

Deputy minister of industry & commerce, Nguyen Thanh Bien, has said that coal export are expected to keep moving ahead due to less effective domestic usage of several types of coal in comparison with export.

Speaking about the recent coal import price being $22/tonne below the export price, Bien affirmed that despite such difference, the import price would not able to drop below domestic selling price.

The 9,400 tonnes shipment of coals imported from Indonesia last month is Vietnam Coal and Minerals Corporation’s first ever imported batch of coal which is merely for experimental purposes. This move is also considered as a signal indicating the initial implementation of our policies on material reserves for Vietnam’s energy industry.

It is strongly recommended by the Ministry of Industry and Commerce to restrain from exporting raw commodities. Coal exports have witnessed a 17.4 percent decline in volume in the first six months and the downtrend is expected to continue through to 2015, at which time there would not be sufficient coal deposits for export.

Nonetheless, he believes that from now on to 2015 exporting the types of coal which are not domestically fully taken advantage of should be further enhanced. As a consequence, revenue in foreign currencies earned from such exports could then be used to cover the import expenses of cheaper coals for domestic consumption.

Obviously, simultaneous exporting and importing coal is a normal activity, as in other industries such as steel, chemicals and chemical products, emphasized the deputy minister. Also, he does not suggest exporting the types which will then be reimported, particularly those of minor difference in price compared to the domestic selling one. What the Ministry of Industry and Commerce is targeting is to regulate import-export activities towards concentrating on exporting coals that are of greater value in external markets than in the internal one.

Regarding the coal price clarification, the Ministry of Finance in collaboration with the Ministry of Industry and Commerce and several relevant ministries and agencies have recently held meetings with the Vietnam Coal and Minerals Corporation. Hardly any convincing evidences have by far been provided in order for any intransparent price violations to be penalised. Such cases if any will be punished under the law once detailed claims are submitted. – DVT

Tags: Vietnam Coal, Vietnam Coal Exports