China's coal market shows rebound last week

By Tri Subhki R

After a quite long sluggish growth, China's coal market showed a rebound last week. China's coal demand is expected to rise further as ports and end-users will increase their coal stockpiles, according to JYD Coal report.

China's coal market is still oversupplied. However, six major Chinese coal-fired power plants have kept a modest growth due to stable daily coal consumptions along with the dropping temperature. So, it is expected that those power plants would start a new round of coal stock-building for November.

The steam coal price with calorific value (CV) of 5,500 kcal/kg is CNY535 a ton. In Fangchenggang Port, price of imported coal from Indonesia with CV 3,800 kcal/kg was CNY410 a ton on Oct. 25, or higher than CNY400 a ton a week earlier.

In the same port, coal of other imported coal from Indonesia with higher CV also gained. The coal price of CV 4,700 kcal/kg rose to CNY520 a ton on Oct. 25 from CNY510 a ton last week. The coal price of CV 5,500 kcal/kg gained by CNY30 a ton in a week, from CNY590 a ton on October 18 to CNY630 a ton on October 25.

On the other hand, Chinese coking coal market showed a stable growth last week. Price of imported coking coal from Australia slightly decreased as Chinese steelmakers are in wait-and-see position amid tight capital and supply expansion.

JYD, as a commodity e-commerce platform, requires some steam coal supplies from Australia and Indonesia. JYD needs Indonesian steam coal with NAR 5,000 kcal/kg and 100,000 tons of volume monthly.

Editing by Johannes Simbolon