BEIJING, Sept. 30 -- The Coal inventory at the port of Qinhuangdao has declined for six weeks on consolidation of small coalmines in Shanxi province and recovering power consumption. Up until Sept. 28, coal inventories at Qinhuangdao stood at 4.2184 million tons, 200,000 tons less than the previous week.
The economic revival has brought rising coal demand, which has made inroads into the national coal inventory.
By the end of August, China's total coal inventory at major ports dropped by 1.35 million tons month on month to 13.67 million tons, and was 5.96 million tons less than the beginning of 2009.
Li Zhaolin, a coal expert, believes that a large number of small coalmines in major coal production regions have been closed or have suspended production for safety reasons, and the run-up to China's National Holidays has also put pressure on supplies, which has led to tight power-coal supplies.
The deputy manager with the sales company the Shanxi Jincheng Coal Industry Group said that the coal inventories of power plants are all declining, although the average coal inventory is sufficient for 15-20 days. However at a few power plants, coal inventories are sufficient for less than a week, and need to be replenished.
On September 28, the quotation for Tatong coal at Qinhuangdao stood at 630 to 640 yuan/ton, and the price floor was 5 yuan/ton higher than last week.
Li Zhaolin predicted an inevitable slight rise of coal prices around China's national holiday.