Shanghai Securities News reported that the Newcastle port of Australia saw steam coal price edging down by 4.9% WoW to USD 123.29 per tonne last week. In the meantime, drops of power coal price were also spotted in east China. Domestic and international coal prices are expected to be feeling the impact of the coming low season and Japan’s earthquake as well.
Mr Li Chaolin a senior coal expert said “The earthquake and the tsunami would lead coal demand to drop in short term. He explained Japan coal imports will decline as the Sendai port one of Japan main coal ports had been ravaged.”
Relevant statistics about three power plants of China Huaneng Group show, power coal prices had dropped in south China after keeping flat for two weeks. Besides, some regions in China had seen coking coal prices dropping too.
In Taiyuan, Shanxi, second grade metcoke price went down by CNY 20 per ton from a week ago. At Tianjin port, first grade metcoke dropped by CNY 50 per ton. They had been declining for two straight weeks.
Some analysts pointed that that coal price would be heading to a downward path as temperature continues rising, yet some others said, coal demand would recover gradually as infrastructure constructions begin after the NPC and CPPCC.
According to some analysts China witnessing an accelerating progress of industrialization and urbanization. In addition to the large-scale projects, the construction of affordable houses will also help shore up coal demand. However, the growth rate in coal demand is expected to fall.
(Source: www.steelguru.com )