Thermal Coal Price Continues Rise

The average price of thermal coal at Qinhuangdao port is currently 815 yuan ($125) a ton, 5 percent higher than the price in the first quarter this year. The figure is the highest price for two and a half years, according to the China Coal Transportation and Distribution Association.

China’s coal imports for the first quarter are estimated to be 32.32 million tons, a decline of roughly 40 percent year-on-year, according to the China National Coal Association (CNCA).

The number of high-energy-consuming companies is growing, but the construction of power plants and grids lags behind relatively. Thus, many companies still depend heavily on coal for their energy, which is another contributory factor in price increases.

The total coal reserve at power plants was 50.7 million tons at the end of March, a decline of 9.6 percent compared with the beginning of the year, according to the CNCA. The decline implies an unintended exploitation of reserves due to pricing imbalances and the growth of energy consumption.

Source: China Daily