Qinhuangdao port coal price rises to the highest level in 2009
Thursday, 24 Sep 2009
It is reported that coal price at Qinhuangdao port has been rising for two consecutive weeks at a time when the National Day holiday is coming. At the port, high grade mixed coal with 6,000 calorie/kg is offered at CNY 640 per tonne highest since the year.
Experts said that this is due to the safety check in small coal mines, which leads on a drop in supply. In addition, several large coal enterprises such as Shenhua Group and Datong Coal Mine Group have raised coal price which strengthens the market. Still, how long can the uptrend last remains to be seen.
They said "Between September 7th and 21st prices of all varieties of coal kept rising, marking a combined pick up of CNY 15 per tonne to CNY 30 per tonne and the highest level since the year." Journalist also noted that on September 21st high grade mixed coal with 5,500 calorie per kilogram from Shanxi reached CNY 595 per tonne to CNY 610 per tonne, common mixed coal with 5,000 calorie per kilogram CNY 520 per tonne to CNY 535 per tonne, mixed coal with 4,500 calorie per kilogram from Shanxi CNY 455 per tonne to CNY 475 per tonne and that with 4,000 calorie per kilogram reached CNY 400 per tonne to CNY 415 per tonne.”
Each type of coal witnessed a CNY 10 per tonne to CNY 20 per tonne rise from last week. Statistics show that compared with on September 7th the above varieties of coal, CNY 30 per tonne up by 5%, CNY 25 per tonne up by 4.4%, CNY 15 per tonne up by 3%, CNY 25 per tonne and up by 5.8% and CNY 25 per tonne up by 6.7% respectively.
Mr Wangshuai a chief analyst of the coal industry from Orient Securities Company Ltd said "This is reasonable at such a special period as National Day, when some small coal mines are forced to close down in the safety check. Another important reason out that Datong Coal Mine Group has raised the price of coal to be shipped by CNY 30 per tonne to CNY 605 per tonne. It remains to be seen how long the uptrend will last."
Journalists notice that it seems to be long before small coals mines see substantial recover in production. In addition, stock volume at Qinhuangdao port also remains low. These both contribute to the uptrend of recent coal price. By September 21st coal stock at Qinhuangdao port remained at 4.4 million tonnes. Since September 12th, coal stock at the port has always remained at between 4.4 million tonnes to 4.5 million tonnes.
Mr Li Chaolin expert of the coal market said "If such low level of coal stock can sustain itself around October the coal market will probably pick up. He said that and then if the market is carried on by the winter season, when coal demand will be strong, coal market of the year will be better than expected.
