Coal news and updates

 

The price of the 5,500kcal steam coal in the Bohai Rim rose by 11 yuan to 576 yuan/ton in the week through November 26 2013, according to figures from Cqcoal.com. It was the 7th straight week that of price gain since October 16, and price has risen 8.7%, or 46 yuan, accumulatively. 

Restocking by independent power producers has kept the momentum in Chinese domestic coal prices strong over the past two months. Spot coal prices have risen to 590 yuan/ton from 515 yuan/ton at the end of September. The benchmark 5,500kcal coal of 540 yuan/ton is even higher than Barclay's bullish estimate of 525 yuan/ton. Barclays forecast higher coal prices in Q4 2013 and in early 2014 as a result of stronger demand from the power, steel and cement sectors and accelerated coal production cuts. 

China said it will close down all coal mines with an annual capacity of 90,000 tons. This will eliminate 10% of the nation's total coal capacity, CICC estimated. The government will adjust tariffs to encourage imports of high quality coal and discourage imports and use of low quality coal. 

 

Source: www.thechinaperspective.com