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Thursday, 04 June 09
CHINA QINHUANGDAO COAL STOCK JUMPS BY 36.2% MOM - STEELGURU


SteelGuru reported that, Sources indicated that, coal stock at Qinhuangdao port, China's major coal port has reached 4.88 million tonnes increasing by 36.2%, or 1.29 million tonnes compared with May 1st. In the face of the rebounding coal stockpiles, some industry insiders expressed that this would exert pressure to coal price, and also some analysts believe that it can be regarded as a reflection of the traders' positive attitude.

China's Guangzhou port has witnessed the same trend, with coal stock rebounding to current 2.53 million tonnes from 2.2 million tonnes in early May by 15%.

An expert from China Coal Industry Association said "What makes a difference from in March and April is that coal stock is also increasing in power enterprises, instead of merely keeping stable. Journalists got to know that by May 31st coal stock at China's locally served power enterprises had stayed at 32.32 million tonnes, enough for 18 days' operation. This quantity was 1.57 million tonnes more than on May 17th and 4.18 million tonnes more than in March 30th.

An expert said "In short term, coal market will still be in a state of oversupply, so it does have pressure to coal price. However, no signs point to coal price drop at Qinhuangdao port so far and till yesterday high grade mixed coal with 6,000 calorie per kilogram at the port had prevailed at CNY 620 per tonne to CNY 640 per tonne.”

An analyst from a security company said that growing coal stock indicate traders' confidence has recovered to some point. At present the stocking time remains at 8 days which is a normal level compared with 7 to 11 days in history. He further pointed out that a rip might show up in coal supply and demand in the near future.

Source:http://www.steelguru.com/news/index/2009/06/04/OTcwNTk%3D/China_Qinhuangdao_coal_stock_jumps_by_36.2%2525MoM.html



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