Restructuring fuels rise in coal stockpiles, cuts prices
March 6, 2014 Category Automotive Metals & Minerals, Minerals
China’s drive to transform its economy, which includes reducing the role of energy-intensive industries and cutting steel capacity, is driving up coal inventories at key ports as demand across a variety of sectors weakens. Inventories at Qinhuangdao in Hebei province, the largest coal port in China, exceeded what is widely viewed as the warning line of 8 million metric tons on February 6, which was a 10-month high, according to the China Coal Transportation and Distribution Association. The rising stockpiles indicate that downstream users at steel mills, cement factories and coal-fired power plants are reluctant to purchase fuel because of weak market conditions. Xing Lei, Professor at the Institute of China Coal Economy at the Central University of Finance and Economics, said the coal market will be weak all year as policymakers pursue a slower-growing but “more stable” economy. Xing said inventories at Qinhuangdao usually hover around 6 million tons, but the figure has been rising in the past few months. Inventories are also rising at the other three major coal ports in North China-Caofeidian and Jingtang (both in Hebei province) and the municipality of Tianjin. Coal producers have cut prices in an attempt to attract buyers. According to the China National Coal Association, the industry suffered a total loss of CNY40.55 billion for the first 11 months of 2013.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world