Shi Ying, deputy director of China Coal Transportation and Distribution Association stated that the inventory of coal in China continued to see a rising trend amid the slack demand from downstream users. Since buyers have been more willing to conclude purchases for coal in the increasing channel instead of the decreasing momentum, defaults increased in the medium and long-term coal contract.
Wang Maosheng, deputy director of Energy Bureau of Shanxi province said that the increasing imports of coal and relatively high inventory level on power plants’ side exerted a negative impact on coal prices, even peak coal consumption in summer will not provide solid support to coal prices. It is expected that coal prices will likely bear downward pressure in the coming period.