Average coal sales price in central China's Hunan province further slid 8.7% from the previous week to 827.39 yuan/t during the week of July 21-27, said the provincial commerce department.
The average sales price of anthracite coal tumbled by 11.4% to 852.5 yuan/t, and that of bituminous coal fell 7.3% week on week to 814.84 yuan/t.
The frequent issuance of regulative policies from the National Development and Reform Commission helped cool down coal market in Hunan. The economic planner said China has stepped up the construction of coal reserve capacity, aiming to build about 600 million tonnes of coal reserves nationwide, equivalent to 15% of its annual coal consumption.
The department expected local coal demand from industrial sector would decline due to capacity restrictions in steel, chemical and chemical fertilizers industries, but coal demand in residential segment would keep strong in the summer, with the maximum load of power grids refreshing records.
On the other hand, coal supply is likely to grow mildly on the policies to guarantee coal supply and accelerated release of advanced coal capacity in the future.
As coal supply-demand fundamentals are expected to improve, coal price will keep running high next week, the department forecast.
(Writing by Shengnan Liu Editing by Tammy Yang)
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