It is reported that Qinhuangdao port, the barometer of China's coal industry, had stocked 9.17 million tonnes of coal, making it a new record compared with its largest capacity of 9 million tonnes.

Since this July, China's coal export has headed into slump and plus the weakening domestic demand, coal started to built up at coal mines and ports, which finally results in sharper price drop of coal. The higher than ever coal stock at Qinhuangdao port at present is mainly caused by the weakening demand of coal, and of low grade coal in particular.

Currently at the port, 5,800 calorie per kilogram coal price has stumbled 10% to reach CNY 790 per tonnes to CNY 810 per tonnes compared with that of last week, and this has been the lowest since late May. At present, coal production, distribution and selling have all suffered from the weakening demand. In October, the quantity of shipment at domestic ports posted negative growth for the first time, and the average coal price pointed to the downside for the first time of the year, too.

Statistics of Ministry of Industry and Information Technology of the People's Republic of China show that in October, China's power output dipped 4% YoY. Large amount of coal stock is now piled up in power plants a sharp contrast to the picture in earlier this summer, when power was in serious shortage due to insufficient coal supply.

A trader in Guangdong province said that power coal plants have sufficient coal stock, so much that they can make it in January 2009. Coal in power plants in coastal cities such as Guangdong, Guangxi and Jiangsu, have already reached a saturation point. Analysts also express that although coal is in tight supply in China's interior area, next year's coal price is predicted to be declining further.