An Important Contract ince reports became current during the past week or two of contracts being made by Europe for Chinese coal, a certain amount of surprise and scepticism has been prevalent in Shanghai. Coal has not been so plentiful locally to lead to the belief that it would be a paying venture to ship it to Europe, but as a matter of fact the first of these shilfments is now taking place and negotiations are in progress for @ very much larger quantity.
The shipments now being made are for Denmark, and we understand that they amount to 28,000 tons. Local contracts monopolize the output of the best known producers of coal, and in the present case we find that it is coal from Chinese owned and worked mines which is going abroad. The coal for Denmark comes from the Chunghsing mines in the Yihsien district of Shantung, and it is being shipped either from Pukou or Tsingtao to Copenhagen.
It is not known whether Denmark will be in the market for further supplies of Chinese coal. By arrangement with the British government Denmark receives a quantity of coal from Great Britain in exchange for butter and other dairy produce, and is accordingly in a much better position. than many of the other European countries who are dependent on whatever surplus there may be from Great Britain without any definite arrangement as to regular supply The further demand for Chinese coal in the meantime comes from the Mediterranean, in a telegram yesterday Reuter mentioning the need of 100,000 tons by Marseilles.
As a matter of fact Italy is in the market as well as France, and negotiations are proceeding locally for at least 100,000 tons. Furthermore it is required immediately, so it is possible that within a 3 short time contracts will have been completed. It is estimated that the cost of Chinese coal landed in these countries will be about 190/- per ton, a figure slightly cheaper than the cost of Cardiff coal Port Said.
It is expected that this coal will come from the Chunghsing, Yihsi and- other mines in the Yang dist The coal in these different mines varies considerably in q but it is said that an anal Chunghsing coal gives 75 per cent, of the standard of Cardiff coal, showing a very good grade.
Tae Qvestios of Ortrr.
The trouble with Chinese owned mines in the past has been the win: certainty of their output, which has militated against consumers making contracts for supply. Very few of the Chinese owned and worked mines have up-to-date machinery, their operations being confined to scratchings on the surface of the earth or to the sinking of inclined shatts. From time to time in the past they have been able to dispose of large quantities, but these have usually been—accumulations over a period and they have been unable to maintain deliveries on anything like the same scale.
Lately the output of these mines has shown an increase, and they have been able to offer larger supplies. It may, therefore, have been found possible at the present moment to obtain the necessary quantity from them or that the quantity is in view to meet the contracts pending.
There is no doubt, of course, that were these mines worked by up-to-date methods China would be able to export large quantities of coal. but as matters stand the local demand, backed by that from Japan, will tend to be a factor in keeping the—output within the count In the circumstances it is impossible to hazard any opinion whether the demand and prices offered Europe will be sufficient to ensure continuance of the present export.
Text read from the printed page and cleaned; old type leaves the occasional error.