Coal Exports Hitting Domestic Prices

North Koreans are becoming increasingly anxious about heating problems due to the rocketing prices of coal as winter approaches.

Compared with previous years, supplies in the jangmadang are reportedly very limited, and this has caused prices to double in some regions. Compared with other products, the transportation cost of coal is high, exacerbating regional price differentials.

A source from Hwanghae Province told Daily NK today, “The price for one ton of coal used to always be around 100,000 won, but that has risen to 200,000 won. Because of this, many people are worried about not having enough coal for winter.”

The source went on, “Because of this, poor families are not even able to think of gathering coal for winter. In order to obtain firewood to heat up their homes, lots of people have taken to going up in the mountains secretly to get wood.”

Even in northern coal mining regions like North Hamkyung Province, prices have reportedly risen substantially.

A source from Yangkang Province revealed, “Last year, the price was about 120,000 won per ton, but now that has risen to 150,000 won.” In the case of North Hamkyung Province, another source said, “The price here has gone up by 20-30,000 won. People are saying that even in districts where coal used to be abundant it is now in short supply, so prices are continuing to rise.”

The causality is typically unclear, but increasing exports to China are likely to be playing a role. According to documents from the Korean Trade Association, coal exports from North Korea to China from the beginning of the year till September had increased to USD$830 million, double the 2010 figure and four times that of the year before. While much of that may derive from new or more efficient production, it is also likely to be placing strain on domestic supply.

North Korean people are certainly guessing that China is to blame, the source said, repeating, “Everything is being taken and given to China, so the Chinese standard of living rises while we become even worse off.”

According to the source from southerly Hwanghae Province, meanwhile, “People are saying that all our coal has been exported to China so there is no coal in the mines themselves. The state said that it would stop exports by the end of October, but it is a foreign currency earner so people are saying that it is not that easy.”

Meanwhile, the Chinese media has reported something similar to the official North Korean position, citing people engaged in business with North Korea as saying that the authorities announced that all exports for hard currency have been suspended so as to guarantee domestic supplies over the winter.