Spot coal prices in China's top coal port Qinhuangdao remained unchanged from a week earlier as demand stablised ahead of the summer peak season, and prices are likely to stay strong through the next two months, traders and analysts said on Wednesday.
Prices of coal with calorific value of 5,800 kcal/kg (NAR) remained in the range of 785 yuan ($114.9) to 795 yuan ($116.4) a tonne, while coal with calorific value of 5,500 kcal/kg was quoted in the range of 755 yuan to 765 yuan, according to industry data site sxcoal.com.
"The boost for thermal coal demand from the drought in southwestern China is over. Supply is improving, and demand is quite stable," said a Beijing-based analyst, adding that supply has improved.
Coal stocks at China's major power plants climbed by nearly 4 percent to 49.8 million tonnes on May 31, sufficient for 16 days of consumption, compared with the level a week earlier which was enough for 15 days of use, data on sxcoal.com also showed.
"There are people asking about shipments for third-quarter delivery, while back in March and April there was little interest," said a coal importer based in Beijing, adding that demand might weaken after August.
At Qinhuangdao port, coal stocks jumped 14 percent from a week earlier to 6.1 million tonnes on Tuesday, according to port data published on sxcoal.com. ($1=6.830 Yuan)
source: Reuters |
