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China’s benchmark power coal price stays flat

China’s benchmark power coal price remained unchanged during the past week in part due to increasing coal imports and shrinking consumption in coal-fired power plants.

The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China’s major ports, stood at 569 yuan (around 82.71 U.S. dollars) per tonne, the same as a week ago, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.

The index was 2.9 percent lower than at the same period in 2017. Power coal prices have largely remained stable with slight fluctuations.

Coal imports remain at a high level, up 13.5 percent year-on-year to 28.68 million tonnes in August. As the peak season passed, daily coal consumption averaged 635,000 tonnes in six major coastal power stations, markedly down from 706,000 tonnes a year ago.

China is in the middle of capacity cutting in its overloaded coal sectors, with plans to reduce a further 150 million tonnes of capacity this year.

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