Coal prices at the northeastern Chinese port of Qinhuangdao have halted their four-month sideways trend and started to increase. On October 13, prices of the mainstream coal categories at the port indicated an increase of RMB 5/mt ($0.75/mt) week on week. As a result, some insiders are expecting a good sales season in the coming period; however, most analysts say that oversupply still exists in the domestic coal industry and so the extent of any increase is likely to be limited.
On October 13, prices of mainstream coal categories at Qinhuangdao port were as follows: 5,500 Kcal/kg thermal was priced at RMB 715-725/mt ($107.52-109.02/mt), up from RMB 710-720/mt in the previous week; and 5,000 Kcal/kg thermal coal was priced at RMB 615-625/mt ($91.73-93.98/mt), marking an increase from RMB 610-620/mt the week before.
On the other hand, prices of 5,800 Kcal/kg thermal coal and 4,500 Kcal/kg thermal coal remained unchanged, at RMB 755-765/mt ($113.53-115.04/mt) and RMB 540-550/mt ($81.2-82.71/mt) respectively.
On October 13, coal inventory at Qinhuangdao port totaled 6.4364 million mt, down 1.3636 mt or 17.5 percent week on week.
US$1 = RMB 6.65