Bloomberg reported that China benchmark thermal-coal price fell for the first time in three months dropping from a three year high as utilities finished building stockpiles for winter.
According to the China Coal Transport and Distribution Association coal with an energy value of 5,500 kilocalories per kilogram at Qinhuangdao port slid 0.6% to a range of CNY 845 to CNY 855 per tonne recently from a week earlier. That’s the first decline since August 14.
The National Development and Reform Commission said last month that Chinese utilities typically start to buy the fuel they need for winter heating demand in September and complete stockpiling by November. The nation largest power stations held 70.9 million tons of inventories as of October 18 the equivalent of 20 days of consumption.
Mr David Fang a director at the association said “Stockpiles at power stations are very high and there’s no reason why they need more than what they already have now. Prices will go even lower from here, at least until another round of stockpiling during the coldest periods early next year.”
According to the data inventories at Qinhuangdao which ships half of China seaborne coal supplies mined from inland regions fell 2.5% to 5.89 million tonnes as of yesterday from a week earlier.
(Sourced from Bloomberg)