Bloomberg reported that China benchmark thermal coal price at Qinhuangdao port fell for a fifth straight week as warm weather and the Chinese Lunar New Year reduced demand.

According to data published by the China Coal Transport and Distribution Association coal with an energy value of 5,500 kilocalories per kilogram declined as much as 1.8% from a week ago to a range of CNY 790 to CNY 800 per tonne.

Mr Li Xuegang an analyst with the association said Qinhuangdao coal rates may stabilize by the Lunar New Year holiday which starts the week of January 22 and may rebound when industrial activity resumes and power plants replenish their stockpiles.

The association said the nation Bohai-Rim Steam-Coal Price Index which tracks power-station coal prices at six ports including Qinhuangdao fell 1.4% to CNY 797 a ton from a week earlier.

Factories and construction projects in the nation slow or halt operations this month as workers head to their hometowns to celebrate the festival. It curbs electricity consumption, two thirds of which is fired by coal in China. Spot prices at northern China ports have been capped by the National Development and Reform Commission at CNY 800 a ton since the start of the year.

(Sourced from Bloomberg)