A report claimed that China's benchmark power coal price had been stagnant in recent months. The said unchanged movement of coal prices was due to the lack of coal demand for coal in China. It was also revealed that multiple economic factors have caused a restriction in the production capacity of coal in the country.
The Bohai-Rim Seal-Coal Price Index (BSPI) that shows the current price of the commodity coal in the stock market has been stagnant at 550 yuan or about 78.59 USD per ton. These values were taken from last Wednesday's report posted by Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd. Moreover, it was also highlighted that the BSPI is the most relevant indicator of China's coal prices in the trading market today.
Analysts claimed that the over-expected increase of imported coal into China was backed by the inventory of downstream firms. Moreover, economic factors such as insufficient residential electricity demand caused a decline in coal market demand.
The report also indicated that other economic factors in China's economy caused the decline of the production of coal in the country. The said ecoomic factors urged the industry to abide by production capacity restrictions resulting in the stopping of the falling of coal prices in some production areas.
The prices of coal in the market n the coastal coal market was also reported to be stagnant or remained flat for the last quarter of this year. During the mid-term of 2019, long-term agreements on coal have labeled a success which the report claimed to have initially ensured the stability of coal import supply. Moreover, the report also revealed that the healthy coal activity within the market was expected to stabilize its prices, the analysts claimed.
In other news, Xinhua reported that Qinhauangdao Port Co Ltd, the coal trading market, has a present trade value of 3.23 Chinese yuan with a range of 3.20 to 3.24. Within the 52-week range, it had 2.95 up to 5.45 forecast value. Moreover, the report also showed that the change in the price is 0.02 or a 0.62 percent increase from its previous value.
The report also indicated that during August of this year, the Qinhuangdao Port's H1 net profit was also down by 24.99 percent. As of December 19, 2019, the said trading value of coal imports to China yielded 5, 070, 251 of volume in the market. However, Qinhuangdao Port's nine-month net profit had been down by 8.6 percent since October.