Figures released by the China Coal Transportation and Development Association report that coal prices at Qinhuangdao Port, China's largest coal trans-shipment port, continued to decline from February 16th to February 23rd while stockpiles grew.
Average prices dropped between CNY 5 and 10 per ton over the period and the port's stockpiles increased from 7.38 million tons on February 14th to 7.60 million tonnes on February 21st. Stockpile volume is more than 2 million tonnes higher than it was on February 1st.
Mr Li Ming a CCTDA coal analyst, wrote in a research report on February 23rd that growing stockpiles is attributable to weak downstream demand. Meanwhile, coal stockpiles at key power plants grew to 36.30 million tons on February 10th which is enough to operate on for 21 days, or two days more than there was at the end of January. The situation indicates that thermal coal prices might continue to drop in the coming weeks.
Coking coal prices, however, have rebounded due to relatively short supplies. In addition, a coalmine explosion that occurred at a coking coal mine in Shanxi Province on February 22nd could further limit supplies.
Source: Steel Guru
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