Metal Biz reported that coal inventory at Qinhuangdao port dove to 4.35 million tonnes down 0.15 million tonnes over the 4.5 million tonnes last week set a record lowest this year.

The coal price at Qinhuangdao port also increased. Presently the coal price of 5500 kilocalories at Qinhuangdao port is CNY 580 per tonne to CNY 595 per tonne up by CNY 10 to CNY 30 over last week. The settlement price of Datong high grade 6000 kilocalories is more than CNY 640 per tonne up slightly from last week.

The coal prices increased and the ships for buying coal outside also rose. Normally the waiting coal ships are 80 to 90 at Qinhuangdao port, while there are about 120 one at present. However, Mr Pan Xuyun from Zhejiang Fuel Corporation believed the increasing coal demand and tight coal for power generation had something with National Day as well as decreasing supply. Coal producing areas cut production taking safety into consideration, which resulted in falling supply of coal for power generation.

He said that some areas such as Tianjin, Beijing needed to ensure a sufficient coal supply presently due to the National Day, while some industries in south of China began to recover, which also aroused increasing demand of electricity and coal.

Mr Niu Hongjun deputy director responsible for strategic research from Yongcheng Coal Co Ltd said that some small mines in Henan have suspended production, the producing enterprises are all state-owned major coal mines now, as the small mines accounted for nearly a half proportion in total coal production, the curb of production in small mines is bound to affect the coal supply.

It is understood that there are 158 mines stopping production to rectify in Pingdingshan City, Henan province. The governments in Henan, Shaanxi, Shanxi and etc. have issued documents, requiring the local small coal mines not to resume production before inspection.

(Sourced from Metal Biz)