China's benchmark power coal price remained flat during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China’s major ports, stood at 533 yuan (about 75.47 U.S. dollars) per tonne Wednesday, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.
A number of factors led to the flat coal price, analysts said.
Due to the dual effects from the Dragon Boat Festival holiday and month-end, the remaining quota of each mine was limited, which restricted the release of coal production. The coal price in the regional market has been relatively strong.
On the other hand, the inventory of northern transit ports has gradually accumulated. The freight volume of the Datong-Qinhuangdao Railway Line has been maintained at more than 1.35 million tonnes for several days, and the cargo supply structure of ports along the line has improved at the same period.
Because the plum rain season has come early with great intensity, the hydropower has been better consumed, and the thermal power has started peak shaving process. Affected by the substitution effect of hydropower, the tight balance of supply and demand makes the coal price rise sluggish.
Released every Wednesday, the BSPI is a leading indicator of China’s coal prices.
Source:Xinhua
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