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Friday, 17 July 09
CHINA COAL-SPOT PRICES EDGE LOWER, SUPPLY APLENTY


China Mining reported that, spot prices in China's top coal shipping port Qinhuangdao edged lower from a week earlier, as supply grew, offsetting the potential tightness caused by rising power demand.

Thermal coal with calorific value of 5,800 kcal/kg was quoted at 600 to 610 yuan a tonne, unchanged from a week earlier. Prices of coal with calorific value of 5,500 kcal/kg fell 10 yuan, or 2 percent, to 545 to 565 yuan, according to the Qinhuangdao Seaborne Coal Market.

"The prices edged lower because supply is relatively abundant," said Zhan Lingyan, an analyst with Shenyin & Wanguo Securities.

China's June coal output rose 12.3 percent to a record high of 279.09 million tonnes, up 15.9 percent from a year earlier, the National Bureau of Statistics said on Friday.

"Small coal mines in Shanxi were returning to production, in addition to fast growth in coal production in Inner Mongolia and Shaanxi," said Zhan.

China's power output in June increased 5.2 percent from a month earlier, the first increase in a non-holiday month since October 2008 as hotter weather and a reviving economy drove up demand.

Source: China Mining



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