Coal prices rally at Qinhuangdao Port

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Shanghai.  May  8.  INTERFAX-CHINA  - The price of 6,000-kilocalorie per
kilogram  (kcal/kg)  Datong premium coal rebounded by RMB 20 ($2.93) per
ton over  the  first week of May to RMB 640 ($93.70) per ton on May 7 at
Qinhuangdao  Port,  China's largest coal trans-shipment port, China Coal
Resource Net reported.
A drop in  coal stockpiles and an increase in power consumption over the
last two  weeks  in April helped alleviate market concerns that had kept
prices down  over  the  same  period,  Chen  Liang,  a coal analyst with
Everbright Securities, told Interfax.
Coal prices  had grown sharply over the first two weeks in April only to
plateau in the latter half of the month on concerns of weak demand.
At the end  of  April,  coal  stockpiles  fell  to  3.89 million tons at
Qinhuangdao,   their  lowest  level  since  November  2006.  Reports  of
satisfactory  sales  statistics regarding the real estate and automotive
industries  and  rising  steel  and  coke prices also contributed to the
increase in coal prices.
Chen also noted that Shenhua Group Corp., China's largest coal producer,
raised its  May  spot  coal  prices by between RMB 10 ($1.46) and RMB 15
($2.20)  per  ton. Rival Datong Coal Mine Group may also raise spot coal
prices by around RMB 15 ($2.20) per ton.
"The adjustment  of  spot  coal  prices was made on the basis of April's
coal market  and  will  in turn influence the spot market price in May,"
Chen said.