coal price in china, page-4

crackpot,

The Inner Mongolia price is somewhere in the supply chain. If you add your $60/t to the transport cost to Qinhuangdao, handling and storage charges and the coal traders' margin you get a price quoted fob Qinhuangdao.
- Inner Mongolia price $60/t.
- Qinhuandao 1350km from Mongolia @3c/km/t = $41.
- handling and storage fees $5.
- Margin 20% = $12.
Total= 60 + 41 + 5 + 12 = $118. Of course this price is subject to seasonal and foreign exchange fluctuations.

The fob Qinhuangdao price looks great, but in reality a large portion is logistic costs.

Coal trading companies like Noble and Banhu deliver to their customers directly and take the 20% margin.

More importantly for coal investors is to work backwards from the Inner Mongolia price ($60) to arrive at the mine-gate price by taking away transport cost ($14), royalties (Mongolia 5%), VAT (China 17%, Mongolia ?), loading charges, etc.