China’s benchmark power coal price stays flat
China’s benchmark power coal price stayed unchanged week-on-week due to rising coal stock in major ports.
The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China’s major ports, stood the same as a week ago at 570 yuan (around 90 U.S. dollars) per tonne, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.
The price was 603 yuan in the same period of 2017.
Analysts say the steady supply and piling coal stock should be attributed to the flat price.
The coal inventories have reached 21 million tonnes at three main ports for coal transportation, including Qinghuangdao and Tangshan, and 14 million tonnes in six large coastal coal-fired power plants, sufficient to meet the consumption demand for the whole month.
The power coal price has remained lackluster since February as upward temperatures have curbed coal use.
China is in the middle of capacity cutting in its glutted coal sectors, with plans to reduce 150 million tonnes of capacity this year.