Thermal coal prices at major ports around Bohai Sea edged down further in the week ending November 30, marking its third consecutive week of declines, market sources said.
The latest Bohai-Rim Steam-Coal Price Index, or BSPI, indicates that the average price of thermal coal with calorific value of 5500 Kcal/kg dropped to CNY 847 per tonne, down CNY 3 per tonne from a week earlier when the price was down CNY 2 per tonne.
At Qinhuangdao port, the price of 4500 kilocalories per kilogram, 5000 kilocalories per kilogram, 5500 kilocalories per kilogram and 5800 kilocalories per kilogram thermal coal came to CNY 635-645, CNY 735-745, CNY 840-850 and CNY 895-905 per tonner respectively, decreasing CNY 5 per tonne as compared to the previous week.
The continuous fall in thermal coal price was mainly attributed to the high levels of inventory at power plants and main ports despite of the favorable factors that may somewhat stimulate the market demand, such as increasing coal consumption in winter season.
The thermal coal market was hurt again by rumors that the National Development and Reform Commission would put a cap on spot coal prices. It was reported that the NDRC ordered, in a statement released recently that benchmark spot prices with a heating value of 5,500 kilocalories per kilogram to be capped at CNY 800 per tonne.
China steel information centre and industry database