Thu Apr 21, 2011 7:24am GMT
* Qinhuangdao prices rise to 4-mth high, port stocks drop
* Warnings of coal shortage help boost domestic prices
* March coal imports at 9.05 million tonnes
By Fayen Wong
SHANGHAI, April 21 (Reuters) - Expectations that China would boost its coal imports over the summer months rose when its
domestic thermal coal prices climbed further to scale a four-month high and port stocks dropped again to a five-month
low this week.
Coal with a heating value of 5,500 kcal/kg rose for the third week up to 785-795 yuan ($121.83) a tonne on Thursday,
while 6,000 kcal/kg NAR coal steadied at 845 yuan, according to industry data website SXCOAL (www.sxcoal.com).
On other price monitors such as the Bohai-Rim price index, the price of 5,500 kcal/kg NAR coal has risen 1.9 percent from a
week ago to hit 799 yuan this week, a sign that the price advantage for imports could be even wider.
"Demand has picked up a lot since power plants are restocking in advance," said a Guangzhou-based trader.
"Just look at the falling port stocks. It's definitely bullish for prices."
Stocks at top coal port Qinhuangdao posted its 7th straight week of declines, with stocks falling another 7 percent to 5.96
million tonnes, bringing total declines since the start of the month to 19.6 percent.
Analysts said Beijing's decision to build an emergency stockpile of 5 million tonnes of steam coal by end-May also
added to expectations that spot supplies would tighten.
China Shenhua Energy Co Ltd , the country's largest coal producer, said on Thursday it had been told by its
state-own parent that it needs to help build 1.7 million tonnes of coal inventory as part of the government's planned emergency
stock this year.
Domestic coal prices were also boosted by warnings that a growing list of regions were facing coal shortages and that the
government may start rationing power this month because of tight coal supplies and hydropower generation.
China has warned that power shortages this summer could be the worst for years, with power generation and transmission
systems unable to cope with rising demand. The east, north and south of China are likely to be hit the hardest.
The latest gain in prices could buoy utilities' and traders'import appetite, should the price discount widen.
However, some overseas traders said Indonesian sub-bituminous coal prices were also swiftly rising on strong
demand, with a major supplier having sold 12 shipments into China at around $92 a tonne for 5,000 kcal/kg NAR coal.
Weekly Qinhuangdao prices for (Yuan) PORT STOCKS
>6,000 kcal/kg >5,500 Kcal/KG (Mln Tonnes) WEEK TO
835-845 785-795 5.957 Apr 18
835-845 780-790 6.399 Apr 11
825-835 770-780 6.877 Apr 04
820-830 770-780 7.412 Mar 29
820-830 765-775 7.735 Mar 21
825-835 770-780 7.835 Mar 14
820-830 765-775 8.398 Mar 07
825-835 770-780 8.472 Mar 02
825-835 770-780 7.533 Feb 21
825-835 775-785 7.284 Feb 14
825-835 775-785 7.426 Feb 07
825-835 775-785 6.859 Jan 31
825-835 775-785 7.071 Jan 24
835-845 780-790 7.210 Jan 17
835-845 780-790 6.954 Jan 10
835-845 780-790 7.049 Jan 04
835-845 780-790 7.104 Dec 30
835-845 780-790 7.590 Dec 24
840-850 790-800 7.006 Dec 20
845-855 795-805 6.711 Dec 13
845-855 795-805 6.663 Dec 06
860-870 805-815 5.789 Nov 29
850-860 795-805 6.170 Nov 22
840-850 790-800 6.197 Nov 15
840-850 790-800 6.387 Nov 08
825-835 765-775 6.805 Nov 01
($1 = 6.526 Chinese yuan)
(Editing by Jacqueline Wong,Thomson Reuters)
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