In December, coal prices at the Chinese port of Qinhuangdao registered a month-on-month increase for the fourth straight month, reaching peak levels for 2009. Meanwhile, coal inventory at Qinhuangdao has continued to decline, with total inventory amounting to 5.054 million mt by the end of business on December 28, down by 29.4 percent compared with the beginning of December.
According to observers, weather has been the main factor boosting up coal prices at Qinhuangdao in recent days, with the freezing weather conditions resulting in increased coal consumption for heating and power generation. However, since downstream demand for coal for electricity generation has already reached maximum levels, coal prices are expected to gradually lose their upward momentum, and are expected to see a correction after a certain period of stable movement.