1st LD-Writethru: China's benchmark power coal price edges up
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E-mail Xinhua, July 8, 2020
SHIJIAZHUANG, July 8 (Xinhua) -- China's benchmark power coal price rose slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China's major ports, stood at 545 yuan (about 77.67 U.S. dollars) per tonne Wednesday, a rise of 12 yuan week on week, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.
Analysts said that a number of factors contributed to the coal price rise.
Firstly, the increment of coal supply and demand was unbalanced. Affected by local policies, it was difficult to increase the supply of coal in main producing areas substantially.
Secondly, influenced by the uncertainty of hydropower, thermal power plants entering deep peak shaving needed to keep coal storage at relatively high levels. The stock in the northern port, which was a reserve source reservoir, however, was at a medium-and-low level. The increase in demand and the slight shortage of backup supply have given coal prices a driving force to rise.
Also, the coal price of long-term contracts rose sharply, pushing up port trading prices further up.
Released by the company every Wednesday, the BSPI is a leading indicator of China's coal prices. Enditem
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