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Thursday, 13 August 09
CHINA COAL-PRICES UNCHANGED, BUT LIKELY TO MOVE HIGHER


Alibaba reported that, Spot coal prices in China's top coal port Qinhuangdao were unchanged from a week earlier, but are still looking bullish in the short term on rising demand, analysts said on Thursday.

Coal with calorific value of 5,800 kcal/kg (NAR) was quoted in the range of 600 to 610 yuan ($87.8 - $89.2) a tonne. Prices of coal with calorific value of 5,500 kcal/kg were trading at 555 to 570 yuan a tonne, according to the Qinhuangdao Seaborne Coal Market. (
www.cqcoal.com)

"In the next month or two, thermal coal prices are likely to rise, because it's hard for supply to catch up with fast-growing demand," said Henry Liu, an analyst with Macquarie.

"In addition, there are still uncertainties around small mines -- some of them are back in production, but how much capacity has returned is unknown."

China's coal output in July surged 14.8 percent on the year to 257.8 million tonnes, the National Bureau of Statistics said.

Coal stockpiles in Qinhuangdao fell 4 percent from a week earlier to 4.9 million tonnes by Wednesday, analysts said.
Source: Alibaba



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