China's coal is expected to see buyer market as weak demand from downstream industries leads torising inventory in main ports, according to experts.

    The coal stock at Qinghuangdao port, China's major coal port, amounted to the year's record of 8.28 million tons last Friday, with 7.873 million tons at domestic trade port, and 0.407 million tons at foreign trade port.

    Coal inventory keeps growing momentum in South China's major power plants and ports, reaching the record high by last Friday.

    "The weak demand from power plants leads to constant rise of coal stock at Qinghuangdao port," said Li Xuegang, General Manager of Qinghuangdao Coal Exchange Center.

    The coal inventory at Qinghuangdao port started to grow ten days after the government ordered capping on coal price, with 20,000 tons added everyday. The coal stock reached 6.8 million tons on the first day of August, compared to 6 million tons in July.

    According to the source, coal stock keeps high level at a number of Chinese ports and power plants.

    "For coastal regions with convenient transportation, like EastChina Shandong Province, coal stock has been kept for about 20 days,"said Li Chaolin, an expert with China Coal Transportation and Sale Society.

    "The increasing coal inventory may press down coal price," ananalyst holds.

    Since early September, coal price at Qinghuangdao port has dropped, with common mix (4,500 kcal/kg) down from 700-750 yuan/ton in a week before to 590-640 yuan/ton.

    The sliding output of downstream industries and increasing output of large coal enterprises are shifting the relation between coal supply and demand, said Sun Haibo, an analyst with United Securities.

    In short term, some small coal mines are expected to resume production after Olympics and thus add coal supply.

    But Wang Shuai, the top analyst of Orient Security, holds the conservative view that the current stock rise is partly due to the soft demand in transition period between autumn and winter.

    "The overall coal demand links to the macro economy, and the stable economic growth serves to maintain coal price," added Wang.