Steam coal prices expected to drop in China as winter ends

According to the data issued by the China National Coal Association (CNCA), as of March 10 the spot price of steam coal at China's Qinhuangdao Port is standing at RMB 820-830/mt ($125-126/mt), including 17 percent VAT. At the same time, Australian steam coal offers for the Chinese market are now priced at RMB 930/mt ($142/mt) CFR southern ports, while ex-Russia steam coal offers are at RMB 938/mt ($143/mt) CFR southern ports. Both are much higher than domestic sales prices.
 
With the peak winter season for coal consumption coming to an end, inventories of steam coal have recently surged up at Qinhuangdao port. In this context, steam coal prices in China are expected to slip down in the coming period.