According to the data released by China Coal Transportation and Distribution, the significant surge of coal demand and inventories promoted benchmark spot price of coal to peak highest level since 14 months at Qinhuangdao port.

Analysts said that the coal whether swept most regions of China this week, which will drive coal price to hike further. In according with the data, till January 11, the benchmark price of Datong high quality of coal was 840-845 yuan per ton, up about 2% from last week and Shanxi high quality increased 4% to 800-810 yuan per ton.

At the same time, the coal inventory also boosted nearly 9% to 5.84mln tons at Qinhuangdao port.

Wang Shuai, analyst of Orient Securities said that the both increases of coal price and inventory show that coal traders are stockpiling as they thought the coal whether and strong recovery of China will push coal price up.

Wang also disclosed that the forecast that cold weather will come this week may increase coal demand, which provided much impetus for traders to stock, therefore, the coal will be shorter and price may hike further.