Qinghuangdao Port, China's largestcoal trans-shipment  port,  saw  a  drop in coal prices over the week of July 21  to  July  25  for  the  first  time  since the middle of April,according   to   statistics  from  the  China  Coal  Transportation  andDevelopment Association (CCTD).

    Average  prices of 6,000-Kcal Datang premium blend coal decreased by RMB60 ($8.82)  per ton to RMB 1,005 ($147.79) per ton on average, while the average  price  of  5,500-Kcal  Shanxi  premium  blend dropped by RMB 65($9.56) per ton to RMB 930 ($136.76).

    Between  the middle of February and the middle of April, China's thermal coal prices  experienced  a slight decrease. The average price of 6,000-Kcal Datang  premium  blend  coal decreased by RMB 27.5 ($4.04) from RMB667.5 ($98.16) on Feb. 11 to RMB 640 ($94.12) on April 14.

    Li Chaolin, an analyst with CCTD, told Interfax that the decline in coalprices indicates  that  the  policy released by the National Developmentand Reform Commission (NDRC) has been effective.

    On July  24,  the  NDRC froze spot coal prices at major ports, including Qinghuangdao  Port,  Tianjin  Port and Tangshan Port, and said that coalprices at those ports should not exceed levels recorded on June 19 untilfurther notice.

    On June  19,  coal  with a heat value of 5,500 kilocalories per kilogramwas selling for RMB 860 ($124.64) per ton, RMB 840 ($121.74) per ton and RMB 850   ($123.19)  per  ton  at  Qinghuangdao,  Tianjin  and  Tangshanrespectively.

    Li said  that  maximum  coal  prices at Qinghuangdao port were basically stable from  July  21  to  July  25,  while  minimum  prices  plummeted, indicating  that  traders  were  reacting in different ways to the pricefreeze policy.  The  future  trend  for  spot  coal  prices is currentlyunclear, Li said.

    "The NDRC  hopes  to  see  no  further  rise  in  coal prices, but it is difficult  for  it  to  monitor the prices of all coal transactions," Lisaid.

    Another  coal  industry  analyst,  who  wished to remain anonymous, told Interfax  that  even if the government effectively controls coal prices,prices will probably not fall below that of June 19.

    The table  below  specifies  coal  prices  on  July  21  and  July 28 at Qinghuangdao Port.

    Spot coal prices at Qinghuangdao Port, July 21 and July 28

Region        Coal type   Heat value   Price type   Price per    Price per
                           (Kcal/KG)               tonon July   tonon July
                                                       21           28
Qinhuangdao    Datong        6,000        FOB      RMB 1050 -    RMB 940 -
Port, Hebei    premium                              RMB 1080     RMB 1070
                blend                              ($154.41 -   ($138.24 -
                                                    $158.82)     $157.35)
Qinhuangdao    Shanxi        5,500        FOB       RMB 980 -    RMB 860 -
Port, Hebei    premium                              RMB 1010     RMB 1000
                blend                              ($144.12 -   ($126.47 -
                                                    $148.53)     $147.06)
Qinhuangdao    General       4,000        FOB       RMB 670 -    RMB 590 -
Port, Hebei     blend                                RMB 700      RMB 700
                                                    ($98.53 -    ($86.76 -
                                                    $102.94)     $102.94)
Qinhuangdao Shanxi blend     5,000        FOB       RMB 870 -    RMB 780 -
Port, Hebei                                          RMB 900      RMB 900
                                                   ($127.94 -   ($116.03 -
                                                    $132.35)     $132.35)
Qinhuangdao    General       4,500        FOB       RMB 770 -    RMB 700 -
Port, Hebei     blend                               RMB  800      RMB 800
                                                   ($113.24 -   ($102.94 -
                                                    $117.65)     $117.65)
Source: China Coal Trade & Development Association
Key: FOB = Free on Board