Coal prices continue to slide at Qinhuangdao Port

Technorati Tags: Baltic Dry Index,Baltic Dry Indices,Ship Chartering,Shipchartering,Voyage Fixtures,Time Charter Fixtures,Panamax,Capesize,Handymax,Handysize,Supramax,Dry Cargo Fixtures,Bulk Cargo Fixtures,Baltic Exchange,Freight Review,Maritime Baltic Index,TNT Freight Review,China Coal Prices,Qinhuangdao Coal Price

Shanghai. February 24. INTERFAX-CHINA - Coal prices at Qinhuangdao Port,
China's largest coal trans-shipment port, continued to decline from Feb.
16 to Feb.   23,   while   stockpiles  grew,  according  to  China  Coal
Transportation and Development Association (CCTDA) statistics.
Average  prices dropped between RMB 5 ($0.73) and RMB 10 ($1.46) per ton
over the  period  and  the port's stockpiles increased from 7.38 million
tons on  Feb.  14  to  7.60 million tons on Feb. 21. Stockpile volume is
more than 2 million tons higher than it was on Feb. 1.
Growing stockpiles is attributable to weak downstream demand, Li Ming, a
CCTDA coal  analyst,  wrote  in a research report on Feb. 23. Meanwhile,
coal stockpiles  at  key power plants grew to 36.30 million tons on Feb.
10, which  is  enough  to  operate on for 21 days, or two days more than
there was  at  the  end of January. The situation indicates that thermal
coal prices might continue to drop in the coming weeks.
Coking coal  prices,  however,  have  rebounded  due to relatively short
supplies.  In  addition,  a coalmine explosion that occurred at a coking
coal mine in Shanxi Province on Feb. 22 could further limit supplies.
The table  below  specifies  coal  prices  on  Feb.  16  and  Feb. 23 at
Qinhuangdao Port.
Spot coal prices at Qinhuangdao Port, Feb. 16 and Feb. 23, 2009
Coal type          Heat value         FOB price on Feb   FOB price on Feb
                   (Kcal/kg)          16 (RMB, ton)      23 (RMB, ton)
Datong premium     6,000              590 - 600 ($86.26  585 - 600 ($86.26
blend                                 - $87.72)          - $87.72)
Shanxi premium     5,500              565 - 575 ($82.60  555 - 565 ($81.14
blend                                 - $84.06)          - $82.60)
Shanxi blend       5,000              475 - 485 ($69.44  465 - 475 ($67.98
                                      - $70.91)          - $69.44)
General blend      4,500              400 - 420 ($58.48  400 - 420 ($58.48
                                      - $61.40)          - $61.40)
General blend      4,000              350 - 365 ($51.17  340 - 355 ($49.71
                                      - $53.36)          - $51.90)

Source: China Coal Trade and Development Association 
Note: FOB = free on board
-TW