China’s benchmark power coal price edges up
China’s benchmark power coal price rose slightly during the past week as destocking at ports and power plants helped inflate coal prices.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China’s major ports, reached 577 yuan (about 81.5 U.S. dollars) per tonne Wednesday, a rise of 1 yuan week on week, according to Qinhuangdao Ocean Shipping Coal Trading Market Co.
As of Wednesday, total inventories of ports around the Bohai Sea have dropped to less than 25 million tonnes, down 1.5 million tonnes from the high in the middle of this month. Analysts said the increasing demands of terminal consumers also buoyed the market, leading to the brief price rise.
The expectation of tightened supply from a coal-producing area in Inner Mongolia has also contributed to the rising coal prices, analysts said.
Released by the Qinhuangdao Ocean Shipping Coal Trading Market Co. every Wednesday, the BSPI is a leading indicator of China’s coal prices.