China Jan power coal price index down for 1st time in 8 mths

2017-02-16 10:46:00 Price sxcoal.com

China's monthly power coal price index fell for the first time since last May to 528.54 yuan/t in January, said the country's top economic planner on February 13.


The power coal price index, which assesses domestic 5,000 Kcal/kg NAR coal on a delivered basis to power plants, was 1.2% lower than the month prior but up 61.8% over the previous year.


Regional sub-indices showed that power coal prices in Guangxi, Jiangxi and Hunan were relatively high, at 740.85 yuan/t, 703.05 yuan/t and 692.1 yuan/t, respectively.


Industrial factories started to suspend operation in the latter half of January to celebrate the Spring Festival, denting coal demand and weighing on prices of the fossil fuel.


The Fenwei CCI Thermal Index assessed domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port at 603 yuan/t FOB with 17% VAT on January 25, down 14 yuan/t from end-December; the price of domestic 5,000 Kcal/kg NAR coal was assessed at 538 yuan/t, inclusive of VAT, down 12 yuan/t from end-December.


To avoid drastic price fluctuation, government authorities signed a memorandum on January 11, according to which certain measures would be taken to adjust market supply and demand to stabilize prices.


On January 22, leading coal miners, power firms and railway bureaus signed tripartite agreement on contract coal transport for 2017, which was expected to better push the implementation of annual supply contracts.


China will continue to press ahead with its coal de-capacity move, and the government has lowered total coal capacity cut target to 800 Mtpa from the previous 1 billion tonnes per annum over 2016-2020, according to an article by Premier Li Keqiang published on Bloomberg Businessweek at the end of January.


Chinese government will put its work focus on "securing supply and stabilizing prices" this year, by adopting bunches of policies like adjusting coal mine working days between 276 and 330.


As the country progresses in capacity cut move, coal prices will be less likely to fall to very low levels and may stay within a rational level. That could signal an end to the favorable profit China's power firms had enjoyed when coal prices were low. Actually, the top five power firms have turned into loss from profit since last September owing to price resurgence.


This year, Chinese coal miners could expect to earn money while power firms may suffer losses, industry insiders said.



(Writing by Jessie Jia   Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Editors Recommendations

1 Weekly global coal market news summary (Nov 13-Nov 17) 2017-11-17

At least 15 states join global alliance to phase out coal by 2030 At least 15 countries have joined an international alliance to phase out coal from power generation before 2030, Reuters repo

2 China thermal coal supply to be sufficient in 2018, Fenwei 2017-11-17

China's thermal coal supply is assessed to remain generally adequate in 2018, as domestic advanced production capacity will be unleashed further, said Sarah Liu, vice president of Fenwei Energy Inform

3 China effective thermal coal capacity to rise 2pct in 2018, Fenwei 2017-11-17

China's effective thermal coal capacity is expected to rise 2% year on year to 3.07 billion tonnes in 2018, said Gao Yingjie, vice-general manager with Project Department of Fenwei Energy Information

4 China coal supply roughly in balance with demand, CNCA 2017-11-17

China's coal supply-demand relation is expected to stay in a basic balance, yet uncertainties including some periodic and structural supply tightness still remain, said Zhang Hong, deputy secretary ge

5 China coal market supply loosen and prices stabilize, NDRC official 2017-11-17

Prices of thermal coal are stabilizing toward a more reasonable level, as supply has loosened up since October, thanks to various measures taken by the government and efforts made by relevant parties,

6 China's NDRC maps out pricings for 2018 coal term contracts 2017-11-17

China's National Development and Reform Commission (NDRC) recently made clear of three pricing mechanisms for mid- and long-term contracts of power coal, in a bid to ensure supply and stabilize prices

7 Producers' low stock helps buffer price slump in China coke market 2017-11-17

After several price slumps since late September, Chinese coke producers finally can take a breath as the market starts to show a sign of strengthening after their stocks fall to low levels amid produc

8 China six coastal power cos' coal stocks remain high 2017-11-17

Combined coal stocks held by China's six leading power generators in southern and eastern coastal areas have been above 12 million tonnes for over two weeks, indicating measures taken by the govern

9 Price cuts extend in China's key coal production regions 2017-11-17

Under massive pressure Chinese miners reduced thermal coal prices in "the Three West Regions" including Shanxi, Shaanxi and Inner Mongolia, as utility buying interest saw little improvement.

10 China Shenhua Oct commercial coal output down 6.3 pct YoY 2017-11-17

China Shenhua Energy Co., Ltd, the listed arm of coal giant Shenhua Group, produced 23.8 million tonnes of commercial coal in October this year, rising 0.4% from the month-ago level but down 6.3% year

Most Read Articles

1 Inner Mongolia steel products prices edge down in Oct 2017-11-08

Northern China's Inner Mongolia witnessed its steel products prices slightly go downward month on month in October, showed data from the regional development and reform commission. But th

2 Tianjin closes over 9,000 polluting cos 2017-11-06

Tianjin in North China has closed 9,081 heavily-polluting companies this year, Xinhua reported, citing the municipal environmental protection bureau. The companies are among nearly 19,000

3 China DCE iron ore futures hits 2-wk top following steel rising 2017-11-06

Chinese iron ore futures climbed to their strongest level in almost two weeks on November 6, tracking firmer steel prices after China's top steel producing province Hebei beat its annual overcapacity

4 China's Shanxi reduces reliance on coal 2017-11-07

Shanxi, China's major coal-producing province, is trying to develop emerging industries such as mobile phone manufacturing to reduce its reliance on coal and transform its economy, Xinhua reported.

5 Is China's spot coal market rising up again? 2017-11-09

Coal prices rose silently last weekend in Yulin, Shaanxi province. On November 4, premium mixed coal prices were adjusted up by 10 yuan/t at Hanglaiwan mine; Shenshupan mine's slack coal prices also r

6 Yankuang 3Qs profit up 6.7 times 2017-11-07

Shandong-based coal giant Yankuang Group, parent of Yanzhou Coal Mining, Co., Ltd., earned a profit of 2.03 billion yuan ($306 million) in the first three quarters this year, up 6.7 times year on year

7 Weekly global coal market news summary (Nov 6-Nov 10) 2017-11-10

Mitsubishi, Sumitomo raise profit forecasts on strong coal prices Japanese trading houses Mitsubishi Corp and Sumitomo Corp on November 6 lifted their net profit estimates for the current financ

8 Hebei overshoots this yr's industrial capacity cut target 2017-11-06

Northern China's Hebei province has already met this year's industrial capacity reduction target, cutting over 46.2 million tonnes of iron and steel capacity, 10.5 million tonnes of coal and 8.08 mill

9 China coking coal market remains tepid on waning demand 2017-11-07

China's coking coal market remained tepid recently amid weakened demand from coking and steel industries, which were both ordered to cut production in a bid to improve air quality in the typical high-

10 Inner Mongolia thermal coal price ratchets up in Oct 2017-11-06

Thermal coal prices rose slightly in northern China's Inner Mongolia last month, the fourth consecutive monthly increase since July, said the regional development and reform commission recently.