China’s coal price kept stable on ample supply during Lunar New Year

Feb11, 2011

China's coal price remained stable under ample supply during the Chinese Lunar Spring Festival in Feb 2-8 despite international coal price hike.

By Feb 2, China's benchmark power coal price stood unchanged for two consecutive weeks at 774 yuan/t.

Meanwhile, coal stocks at Qinhuangdao Port, a major coal transit and trading center in north China, stayed high, reaching 7.726 8 million tonnes by Feb 7.

At the same time, daily coal output of major coal producers in Shanxi has approximated to 1 million tonnes by Feb 7, which guaranteed stable coal supply to domestic market. Insiders believe that China's steam coal price is unlikely to jump under the government's price control.

Besides, international coal price is staying range bound at a high level after reaching the peak, which lessened the pressure to drive up domestic coal price.

Currently, steam coal price at New Castle Port in Australia stands at US$ 125 a tonne, down US$2 per tonne from the price on Feb 4.

Li Zhaolin, a coal expert in China, noted that China's coal price will keep stable in general in 2011, with rise estimated at 3 percent over 2010.

(sourced:Xinhua)