Coal Stocks at Qinhuangdao Port Drop, Decline Likely to Extend
[2009-07-28]
By Monday, coal stocks at Chinese Qinhuangdao Port, a major port for coal distribution, dropped 8.4 percent on week to 5.83 million tons, according to data from the China Coal Transportation and Distribution Association (CCTDA).
Meanwhile, coal prices on the sport market kept steady.
Analysts note that coal stocks are likely to keep falling in the following several weeks thanks to the recovering demand from power plants.
However, as the hot weather starts cooling down, the coal stocks may slow down their downward pace, some analysts hold.
A securities analyst predicted the July coal imports may fail to refresh the record of 16.07 million tons set in June. Therefore, the increase of coal consumption will lead to a fall in stocks, he added.
Data from State Grip Corp. show that China's daily electricity consumption in mid-July jumped 8.4 percent year on year. The growth figure indicates the power coal demand is on a steady rise.
The country's daily power consumption in June climbed 3.6 percent over the same period last year.
CCTDA said that spot prices at Qinhuangdao for the benchmark Datong quality coal (5,800 kilocalories per kilogram) held at 590-605 yuan/ton (86.36-88.55 U.S. dollars/ton) Monday.
Last month saw China's coal imports increase almost four-fold over the year earlier. The high imports also raised expectation for the domestic coal stocks.
The coal stocks at Qinhuangdao are mostly supplied to power plants as well as industrial users in the coastal regions.
Meanwhile, coal prices on the sport market kept steady.
Analysts note that coal stocks are likely to keep falling in the following several weeks thanks to the recovering demand from power plants.
However, as the hot weather starts cooling down, the coal stocks may slow down their downward pace, some analysts hold.
A securities analyst predicted the July coal imports may fail to refresh the record of 16.07 million tons set in June. Therefore, the increase of coal consumption will lead to a fall in stocks, he added.
Data from State Grip Corp. show that China's daily electricity consumption in mid-July jumped 8.4 percent year on year. The growth figure indicates the power coal demand is on a steady rise.
The country's daily power consumption in June climbed 3.6 percent over the same period last year.
CCTDA said that spot prices at Qinhuangdao for the benchmark Datong quality coal (5,800 kilocalories per kilogram) held at 590-605 yuan/ton (86.36-88.55 U.S. dollars/ton) Monday.
Last month saw China's coal imports increase almost four-fold over the year earlier. The high imports also raised expectation for the domestic coal stocks.
The coal stocks at Qinhuangdao are mostly supplied to power plants as well as industrial users in the coastal regions.
Source: chinamining.org
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