With coal inventory rising in the Chinese market, average estimated inventories of the country's main power generation stations are sufficient to sustain 16 days of operations. In this context, domestic power generation stations are unwilling to conclude purchases of coal at the present time, thus preventing further upward movement of steam coal prices.
With sales prices of steel and coke products continuing to trend down in the Chinese domestic market, coal prices followed suit during the past week.
At Qinhuangdao port, coal prices have registered slight decreases. In the midwestern coal mining regions, prices are now at relatively stable levels. However, with inventory increasing, China's coal mining regions have started to feel some pressure from the downward price trend. Nevertheless, as the summer season approaches, coal prices are not expected to indicate any large decreases during this traditionally strong period for coal consumption.