The benchmark Bohai Rim Steam Coal Price Index, which tracks power station coal prices at six ports, remained stable for the third consecutive week in the week to August 21st 2012.

The average price of thermal coal with calorific value of 5500 kilocalorie per kilogram kept flat at CNY 626 per tonne compared to a week earlier.

At Qinhuangdao port, China's largest coal handling port, the price of 5500 kilocalorie per kilogram thermal coal remained unchanged at CNY 620 to CNY 630 per tonne, while that of thermal coal with heating value of 5000 kilocalorie per kilogram and 4500 kilocalorie per kilogram gained CNY 5 per tonne to separately CNY 530 to CNY 540 per tonne and CNY 435 to CNY 445 per tonne. 5800 kilocalorie per kilogram thermal coal fell further by CNY 5 per tonne to CNY 675 to CNY 685 per tonne.

The median trading price of 5500 kilocalorie per kilogram thermal coal at the port stood firm at CNY 625 per tonne, CNY 175 per tonne lower than the ceiling price imposed by the National Development and Reform Commission.

Mr Li Xuegang, a coal industry expert, said that despite the continuous steadiness, thermal coal buying activity hasn't shown any significant improvement against the backdrop of slowing economic growth, shrinking power demand and flagging coal consumption in China, and it will remain so for the foreseeable future.

Mr Li added that the drop in China's coal imports in July 2012 also helped cushion against coal price falls, reflecting a decline in coal fired power generation and industrial and manufacturing activity.

Chinese Customs data showed that China produced 20.21 million tonnes of coal in July 2012, up by 15.3% YoY while decreasing 10.3% MoM from 22.52 million tonnes in June 2012.

Source - www.steelhome.cn/en
China steel information centre and industry database

(www.coalguru.com)

Prices/Steam Coal/China