China Coal-Prices climb again, Indonesian imports boosted

Tue Apr 26, 2011 7:31am GMT
 

 * Qinhuangdao prices rise to top 815 yuan, port stocks drop
 * Higher prices help clinch import deals, strong Indonesian
prices
 * Inflation concerns cloud bullish sentiment
 By Fayen Wong	
 SHANGHAI, April 26 (Reuters) - Power demand from factories
and increased construction activity pushed up China's thermal
coal prices for the fourth straight week, with growing warnings
of a summer fuel shortage boosting daily prices to a five-month
high of 815 yuan ($124.85).	
 Average weekly prices of coal with a heating value of 5,500
kcal/kg NAR climbed to 795-800 yuan a tonne on April 25, while
6,000 kcal/kg coal steadied at 845 yuan, according to industry
data website SXCOAL (www.sxcoal.com).	
 But in a sign of robust domestic demand, the daily price of
5,500 kcal/kg coal has already risen to 815 yuan.	
 "Power consumption is rising faster than expected, so
utilities are burning more coal and replenishing more stocks,"
said a producer source in Hangzhou.	
 "But output from mines are growing slower than demand. There
is a lag time for supply to respond to demand because of
bottlenecks at the railways, so I do believe we will see a fuel
supply shortage this year."	
 The head of the National Energy Administration has warned
this week that China must be prepared to cope with power
shortfalls during the high energy-consuming summer month as
other agencies cautioned about a fuel supply shortage.
[ID:nL3E7FP2VT]	
 Output growth is also slowed by consolidation efforts in
other major coal-producing provinces such as Inner Mongolia and
Shaanxi as the local governments proceed to close off small and
unsafe mines through mergers. 	
 Stocks at top coal port Qinhuangdao fell for the 8th week by
5.5 percent to 5.63 million tonnes.	
 	
 MORE IMPORT DEALS	
 Fast-rising domestic prices have also helped overseas
traders clinch more deals over the past week.	
 Demand for Indonesian sub-bituminous coal remains strong and
deals for 5,500 kcal/kg NAR coal were said to have been sold at
around $112 CFR, industry sources said. Including VAT taxes,
such Indonesian imports would hover at $131 a tonne on a landed
basis, cheaper than domestic supplies which is standing at a
minimum of $133.40.	
 Excluding freight, such rates indicates an FOB price of
around $102 a tonne, which represents a premium of around $1 a
tonne to McCloskey's sub-bituminous index on Friday, after
making changes to heating value.	
 Still, some Chinese buyers remain cautious on the outlook of
the domestic market, saying that price gains in the coming weeks
may slow and be rangebound if utilities have secured a sizeable
amount of summer stocks.	
 "Possible government controls are still weighing high on
sentiment. Inflation is still a very big issue within China and
the general sentiment is that Beijing wouldn't tolerate
excessive increase in coal prices," said a Beijing trader.	
             	
 Weekly Qinhuangdao prices for (Yuan)       PORT STOCKS	
 >6,000 kcal/kg     >5,500 Kcal/KG    (Mln Tonnes)  WEEK TO	
 835-845            790-800            5.626      Apr  25	
 835-845            785-795            5.957      Apr  18	
 835-845            780-790            6.399      Apr  11    
   	
 825-835            770-780            6.877      Apr  04    
   	
 820-830            770-780            7.412      Mar  29	
 820-830            765-775            7.735      Mar  21	
 825-835            770-780            7.835      Mar  14	
 820-830            765-775            8.398      Mar  07	
 825-835            770-780            8.472      Mar  02	
 825-835            770-780            7.533      Feb  21	
 825-835            775-785            7.284      Feb  14	
 825-835            775-785            7.426      Feb  07  	
 825-835            775-785            6.859      Jan  31  	
 825-835            775-785            7.071      Jan  24  	
 835-845            780-790            7.210      Jan  17  	
 835-845            780-790            6.954      Jan  10  	
 835-845            780-790            7.049      Jan  04  	
 835-845            780-790            7.104      Dec  30  	
 835-845            780-790            7.590      Dec  24  	
 840-850            790-800            7.006      Dec  20  	
 845-855            795-805            6.711      Dec  13  	
 845-855            795-805            6.663      Dec  06  	
 860-870            805-815            5.789      Nov  29  	
 850-860            795-805            6.170      Nov  22  	
 840-850            790-800            6.197      Nov  15  	
 840-850            790-800            6.387      Nov  08  	
 825-835            765-775            6.805      Nov  01  	
($1 = 6.526 Chinese yuan)	
	

	
	
 (Editing by Jacqueline Wong)	
 	
 

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