https://www.miningweekly.com
Coal|Energy|Industrial|Logistics|Ports|Power|SECURITY|Solar|Power Generation|Power-generation
Coal|Energy|Industrial|Logistics|Ports|Power|SECURITY|Solar|Power Generation|Power-generation
coal|energy|industrial|logistics|ports|power|security|solar|power-generation|power-generation-industry-term

China thermal coal hits one-year low on slow industrial recovery

15th February 2023

By: Bloomberg

  

Font size: - +

China’s thermal coal price plunged to the lowest in a year, weighed down by high inventories amid weak demand and Beijing’s focus on energy security.

The Chinese benchmark power-station coal price fell to a one-year low of 1 000 yuan ($147) per ton this week, dropping below government-set caps, consultant Fengkuang Coal Logistics said in a note. The current rate is about 40% lower than a record high four months ago, according to data compiled by the China Coal Resource.

The drop below key levels, which has deepened after the Lunar New Year holidays, reflects bearish sentiment as China’s economic recovery hasn’t been as strong as expected after the country’s exit from Covid Zero. Industrial activity has picked up, but not fast enough to absorb rising stockpiles.

Inventories have topped out at some of China’s busiest ports as the government expands coal production to prevent a repeat of energy shortages. Some port operators have asked sellers to offer more discounted sales, speeding up the price declines, said local trading platform ocoal.com. Traders are looking at 900 yuan as the new supportive point in the oversupplied market, it said.

China, the world biggest energy consumer, has been pushing local coal production to a record even as massive investment in renewables means clean power will dominate generation capacity. Beijing said earlier this month that it planned to subsidize more coal mines built near giant renewable bases, to serve as backup facilities in the energy transition as intermittent solar and wind power ramps up.

The outlook for thermal coal prices will likely depend on the pace of economic recovery. While many analysts remain bearish, there are signs industrial production is strengthening. The China Electricity Council said in a Monday report that coal power generation rose 28% for the week ended February 9 from a year earlier. Compared with a week earlier, power plants on average are consuming 18% more coal daily.

Edited by Bloomberg

Comments

Showroom

Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 
Yale Lifting Solutions
Yale Lifting Solutions

Yale Lifting Solutions is a leading supplier of lifting and material handling equipment in Southern Africa. Yale offers a wide range of quality...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.224 0.259s - 90pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: