China’s benchmark power coal price inched down on Wednesday due to falling power demand after staying flat for two weeks.
The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China’s major ports published weekly, went down 0.17 percent from a week ago to 582 yuan (around 87 U.S. dollars) per tonne, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.
The price had been on a periodic gaining streak since mid-June until shrinking consumer electricity use and rising coal stockpiles began to reverse the trend. A drop in logistics costs also contributed to the price decline.
But the coal price was still 25 percent higher than a year ago partly due to the country’s capacity cuts in coal and steel sectors.
China aims to phase out 150 million tonnes of coal capacity this year. As of the end of June, around 111 million tonnes had been cut, 74 percent of the target.