According to the data issued by the authorities at Qinhuangdao port in the northeastern Chinese province of Hebei, coal inventory at the port stood at 8.38 million mt on March 16. In the port in question, Datong quality mix coal (6,000C/kg) is being traded at a minimum of RMB 720/mt ($106/mt), deals for Shanxi quality mix coal (5,500C/kg) are being concluded at RMB 670/mt ($98/mt), while Shanxi quality mix coal (5,000C/kg) is being traded at RMB 560/mt ($82/mt), down RMB 120-140/mt or 20 percent compared with the peak level in January.
Meanwhile, some key domestic coal producers have started to cut the price of coal for power generation in the main markets such as Qinhuangdao, Tianjin and Tangshan. This is the first time for the coal producers to lower their prices since the upward trend which started in September 2009.