China’s Coal Prices to Rise in May on Low Stockpiles, Group Says

Power-station coal prices in China may rise in May before stabilizing, as inventories at ports remain low, China Coal Transport and Distribution Association said.

The increase in domestic prices will slow as port stockpiles gradually increase, aided by government orders to boost coal supplies and resumption of normal rail transport capacity on the Daqin line after maintenance in April, the association said in the report published on its website today.

Rising coal prices in China have deterred purchases by utilities and coupled with higher-than-expected industrial activity, have caused power shortages in some regions. Prices at Qinhuangdao port, a Chinese benchmark, rose to the highest in more than two years. Stockpiles there fell to the lowest in a year this week, according to data from the association May 3.

Coal imports will increase in May as buyers turn to global supplies in the face of high domestic prices, China Coal Transport said.

To contact the reporter on this story: Baizhen Chua in Beijing at bchua14@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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