China coal price rises as Qinhuangdao stockpiles plunge

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Publish time: 11th October, 2011      Source: ChinaCCM
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Bloomberg reported that coal for generating power rose at China Qinhuangdao port as inventories plunged to the lowest level in two years as utilities bought more before winter. According to data from the China Coal Transport and Distribution Association coal with an energy value of 5,500 kilocalories per kilogram rose 0.6% to a range of CNY 840 to CNY 850 per tonne recently compared with two weeks earlier. The association didn't publish data a week ago because of a national holiday.

Stockpiles at the port which ships half of China seaborne coal supplies fell 25% to 4.41 million tonnes from two weeks earlier. That's the lowest level since inventories dropped to 4.06 million tonnes on October 11 2009. According to the Qinhuangdao Seaborne Coal Market industry website power plants in China typically start buying fuel from late September before peak heating demand during the colder months. This year, the biggest railway carrying coal from the northern mining province of Shanxi to Qinhuangdao started repairs on September 21 for as long as 15 days. The Daqin Railway repairs would cut daily capacity by 300,000 tons.

According to a report published on the association's website "Stockpiles fell as supplies reaching Qinhuangdao decreased because of the Daqin maintenance. Demand for coal also has risen as major power stations and heating companies started stockpiling coal early.' The association said in the report that coal prices at Qinhuangdao are expected to remain steady in October as rising domestic demand is offset by increasing imports.