According to sources from China largest coal port Qinhuangdao port, on August 10th that coal port at the port remains at 4.9 million tonnes dropping by 1.8 million tonnes compared with the 6.7 million tonnes on July 10th. This is the first time that coal stock had dropped sharply at Qinhuangdao port.
Mr Liu Xiaoming a director from Shanxi Coal Imp & Exp Group said "This is because China economy is warming up and power demand is increasing. He added that less coal than before have been transported to the port which is also a reason.”
Statistics from the dispatching center of the State Grid indicate that China's electricity output in July rose by 4.2%YoY compared with the 3.6% growth in June. Statistics from the power group of Henan province show electricity output set a record high in July and reached 9.57 billion kilowatt hour surging by 14.35%.
An industry insider said "This is only normal fluctuation. He said that the room for the uptrend is small, for the high season in the summer will pass and coal production in Shanxi, Shaanxi and Inner Mongolia will come up to supply the market soon which will curb the uptrend of coal price in due time. In addition, the recovery of the overall economy still remains not quite noticeable and demand remains not strong enough.”
