BEHIND THE COAL PRICE: PAYMENT CONDITIONS

Apart of the factors listed before, sector of mid-size industrial consumers pays also attention to the terms of payments for the contracted commodity. According to the Payment Periods in Commercial Transactions Act of 8th March 2013, 30 days payment period is considered as a good practice for all the companies in Poland.

Because of the scale of operations, mid-size coal consumers not always are able or keen to follow this advice and are negotiating with their suppliers extended periods of the payments. It has been spotted, that price could increase even by 40 PLN/Mt if the payment period for single coal delivery was elongated from standard 30 days to 90 days (in the contract for seasonal deliveries  to heat&power plant in central Poland, with the volume of 80,000 Mt of steam coal).

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