On February 3, coal prices at the Chinese port of Qinhuangdao were down RMB 10/mt ($1.46/mt) or 1-2 percent compared with the previous week, marking the first decline since July 2009. On the date in question at Qinhuangdao, the FOBT prices of Shanxi premium blend coal with heating value of 5,500 kCal/kg were in the range of RMB 790-800/mt ($116-117/mt), while those of Datong blend coal (4,500 kCal/kg) stood at RMB 700-710/mt ($102.5-104/mt), both down by RMB 10/mt week on week. Over the past seven months, coal prices at Qinhuangdao have soared by more than 40 percent.
According to industry expert Li Chaolin, the decrease in coal prices at Qinhuangdao, which is the barometer for the domestic coal market, represents a change in the current market situation which has seen coal prices climbing up continuously during the winter, both as a result of the strong demand caused by the severe weather conditions and due to the supply tightness resulting from transportation difficulties.