China's thermal coal prices were flat this week as power stations, already stuffed with summer stocks, paused their buying spree, but anticipation of another round of summer restocking later this month kept prices elevated. Average weekly prices of coal with a heating value of 5,500 kcal/kg NAR steadied at 843 yuan ($130.38) a tonne, while 5,800 kcal/kg coal was also unchanged at 900 yuan, according to industry data website SXCOAL (www.sxcoal.com).
The stockpile at Qinhuangdao port, which ships half of the nation's sea-borne coal, rose 13 percent to 7.95 million tonnes. "Power plants have stockpiles lasting around 2-3 weeks but we still have close to two months of hot summer weather, so there should be one more round of buying," said a Chinese trader. "The rail bottleneck is also keeping southern supplies at a tight balance, so that's also supporting prices. But I think prices have already peaked (and) will probably start falling by early August."