Chinese Coal Buyer Restocking Ahead of Winters

* Chinese Coal demand continue to improve ahead of restocking in winter
* Demand pushed up Coal prices in China
* China’s Coal import increased by 17.3% Y-o-Y in first 10 Months

China’s Coal inventory fell to 17.9 days on 25 Nov, 2013 from 18.7 days on 18 Nov, 2013 in 6 coastal independent power producers. Qinhuangdao Coal inventory dropped by 13.4 per cent W-o-W to 4.8 MnT. It is to be noted that since October 2011 Qinhuangdao inventory has dropped to the lowest level.

At Qinhuangdao Coal price of 5,500 NAR Kcal/kg increased by 4 per cent W-o-W (CNY 20/MT) to CNY 590/MT on 25 Nov, 2013.

Owing to the winter restocking and supply delays it is noted Qinhuangdao Coal stocks fell. However domestic Coal miners are expecting Coal prices to go up in January as small mines take time to restart production. So the miners with and intention to gain the advantage of increase in the prices they are keeping supplies limited. In addition, the annual Coal contract discussion is scheduled on 15 Dec, 2013

“Coal imports of China increased by 17.3 per cent Y-o-Y to 263 MnT in the first 10 months of 2013 as per the Chinese custom figures. However Domestic Coal production fell during the same period”, the National Development and Reform Commission said, without giving exact numbers to media.

15 Chinese Coal producers are planning to set up a bank to serve the Coal industry, the Securities Daily reported. The bank will use Coal reserves as guarantee for depositors.
With the consequent 6th straight week of price gain, 5,500 NAR kcal/kg steam Coal in the Bohai Rim averaged CNY 565/MT between 13 Nov-19 Nov, 2013, which is up by CNY 11/MT from the previous 7days period.