Coal stockpiles at China’s power plants at four-year high, spot coal prices trend lower – industry body
COMMODITIES DATA
Coal stockpiles at China’s power plants at four-year high, spot coal prices trend lower – industry body
COMMODITIES DATA

Coal stockpiles at China’s power plants at four-year high, spot coal prices trend lower – industry body

 

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China’s thermal coal market prices have recently seen the longest and most substantial pullback this year and power plants’ purchasing prices of coal at northern ports have been trending lower since March to 1,067 yuan per tonne on June 2, compared to this year’s peak of 1,226 yuan per tonne in January, according to the China Electricity Council. 

On the one hand, power companies had increased coal procurement in advance supported by long-term coal purchase agreements and strong coal imports, pushing coal inventories at power plants to the highest in nearly four years and leading to weak demand in spot coal market, and on the other hand, coal consumption in other industries including chemical, metallurgical and building materials remains weak, it said. 

As of June 4, the total coal inventory at China’s power plants stood at 113 million tonnes, rising by 21.35 million tonnes from a year earlier and marking the highest in nearly four years, even higher than the peak levels in winter heating season in the recent two years, sufficient for 25.6 days’ consumption, it said.