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Coal inventories in China hit new highs

Steel News - Published on Tue, 26 Jun 2012

Coal inventories of various large ports and major power plants reached historical levels in mid June, reports China Radio.

According to Wang Lubiao, Vice General Manger at Qinhuangdao Port, the port has maintained inventory of 9.4 million tonnes of coal since June, approaching the historical high of 9.42 million tonnes. A majority of coal storage yards have been closed due to extreme pressures.

Qinhuangdao Coal Exchange market, a barometer of the energy market, has exhibited extreme quiet. One coal dealer said that he has not done business for more than half a month.

It was reported that the weak market in coal emerged in early May and became more apparent in June.

On June 20, Bohai Rim Thermal Coal Price Index showed that thermal coal with over 21,000Btu was sold for CNY 729 per tonne, the largest weekly drop since the index began.

An Zhiyuan, a coal sector analyst, said that the coal market is currently a strong buyer\'s market with apparent excess supply.

The six largest power generation groups monitored by An had high inventory levels of coal while daily consumption of the resources has not risen significantly.

During the first four months, China imported 86.55 million tonnes of coal, an increase of 69.9% from a year ago.


Posted By : admin on Tue, 26 Jun 2012
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