AUSTRALIAN COAL

Otago Daily Times, Issue 18350, 14 September 1921, Page 9

AUSTRALIAN COAL

FORMIDABLE OVERSEAS COMPETITION. (From Our Own Correspondent.) SYDNEY, September 5. Labour troubles, restrictions on export, and formidable competition from Japan and England, have practically suspended tho fiourishing export trade in coal for the East that had been built up in Australia. For years Newcastle coal has been in groat and constant demand for export, but when it became no longer possible to supply this demand foreign buyers had to look elsewhere for supplies, and arrangements were entered into which have rendered Australian competition very difficult. According to recent reports received in Melbourne from Java, British firms have entered into contracts to supply Welsh coal there at about 50s a ton. Coal can be bought in England at 30s a ton. and freight can be contracted for at 20s a ton. Australian coal cannot be sold in Java below about 57s a ton, or 7s above the price at which Welsh coal can be obtained. The price to-day at Newcastle is 21s 9d a ton, and the market rate of freight to Java is 35s a ton. In addition there has to be included in tho cost 3d a ton for harbour dues. The cost price of coal, 21a 9d; freight, 355; harbour dues, 2d, added together, bring the landed price in Java to 56s lid per ton. Consequently all hope for renewing former transactions with Java has disappeared for the

present. These figures rule ns far as competition with Welsh coal is concerned, end there is another serious obstacle. Japan is producing coal very cheaply; the miners are earning relatively low wages, and there is abundance of cheap freight available. Considerable quantities of-Japanese coal have of late been sold at very low rates in China and Singapore.