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China's coal price likely to rise on seasonal factor despite government's capping on power coal price
(Asia pulse)
Updated: 2008-09-01 09:14
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    China's coal price this week has obviously stopped falling starting from July, and it is still likely to rise with the coming of the winter, when the heating supply will fire bigger demand for coal again, according to an analyst.


    The coal price fell in July and early August, the first fall since April's rise, and it is regarded as the impact of the government's temporary price interference measures taken in June.


    The coal price in Qinghuangdao, China's major coal port, halted diving this week (Aug.25-Aug.29), with Datong quality mix (6,000kcal/kg) at 940-1,010 yuan/ton, and Shanxi quality mix (5,500 kcal/kg) at 860-930 yuan/ton, showed the statistics of China Coal Trade and Development Association (CCTDA).


    The coal stock at Qinghuangdao port and Guangzhou port has reached7.17 million tons and 2.13 million tons respectively, much more thanthat a year earlier. The rising stock may be attributed to seasonal reduction in coal demand, said Liang Dunshi, Deputy Secretary ofCCTDA.


    Meanwhile, some of power plants are still running with tight coal inventory.


    As winter is approaching, the rising demand for heating coal will push coal price higher, according to a market analyst.


    But Guo Dunshi, analyst with Great Wall Securities held adifferent opinion. He believed that the growth of coal output in winter will relieve tight supply, and the coal price is expected to be stable.

 
 

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