Spot thermal coal price at Qinhuangdao port rebounded for 4th consecutive week, upside room limited – research

 

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The price of FOB 5,500 kcal/kg thermal coal at China’s Qinghuangdao port rebounded by 7.5% this week from the previous week to 935 yuan per tonne, rising for the fourth consecutive week, amid the country’s safety inspection, restocking for winter season and the pickup in industrial activities, though the price slid 33.6% from the same period last year, Daiwa Securities said in a note. 

The blended thermal coal price at Qinhuangdao port rebounded 0.4% this week from the previous week to 737 yuan per tonne, while the Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in northern China’s major ports, was steady at 715 yuan per tonne.

However, the upside room for spot coal prices is limited due to the decline in temperature in north and east of China and ample inventories, the broker said. 

The broker issues a Neutral rating for the coal sector and it favors China Shenhua with Outperform rating.