Prices of steam coal over 5,500 kilocalories fell to RMB 570 per ton on Thursday at China's largest coal port, Qinhuangdao port, representing a sharp decrease of 18% from a week ago, according to statistics from Qinhuangdao Port Group.
The slide in coal prices is mainly attributed to the weakening electricity demand from domestic steel makers and power plants triggered by the global economic slowdown, sourced reported, citing an industry insider.
It is estimated that China's coal stockpile will add around 30 million to 50 million tons by the end of this year, and an over-capacity of the nation's coal production industry is expected to be seen in the coming two year.
"We are still not sure how serious the coal demand contraction will be next year, but it will be our top concern,” sources reported, citing an unnamed source with China National Coal Association as saying.
The slide in coal prices is mainly attributed to the weakening electricity demand from domestic steel makers and power plants triggered by the global economic slowdown, sourced reported, citing an industry insider.
It is estimated that China's coal stockpile will add around 30 million to 50 million tons by the end of this year, and an over-capacity of the nation's coal production industry is expected to be seen in the coming two year.
"We are still not sure how serious the coal demand contraction will be next year, but it will be our top concern,” sources reported, citing an unnamed source with China National Coal Association as saying.