Bloomberg reported that China power-station coal price rose to the highest level in three years as power stations and central heating plants built up stocks to meet winter demand.

According to data today from the China Coal Transport and Distribution Association coal with an energy value of 5,500 kilocalories per kilogram rose 0.6% to a range of CNY 850 to CNY 860 per tonne as of yesterday compared with a week earlier. That’s the highest price since October 20 2008.

The benchmark price has risen 3% since September 11. Inventories at the port which ships half of China seaborne coal supplies climbed 3.2% to 5 million tons from a week earlier and are at the third-lowest level this year.

The National Energy Administration said last month that provinces in southern and central China which rely on hydropower and areas that have low power tariffs will face tighter electricity supply in the winter and spring. The supply shortfall may be as much as 26 GW.

According to the China Meteorological Administration Northern Chinese cities typically distribute heating from centralized plants in November through March. The temperature in northern China has dropped as much as 14 degrees Celsius since yesterday and the temperature in central and eastern China will drop as much as 10 degrees Celsius by tomorrow.

(Sourced from Bloomberg)