China Coal Prices

Chinese coal prices are now close to their bottom after a long decline brought about by slowing demand and excess supply, an executive with a leading Chinese coal firm said.”I think prices are bottoming out and are unlikely to fall a lot more given the sector-wide losses and rising costs,” said Gong Qingchao, head of sales and executive director with the China Coal Group, China’s second-biggest state coal producer.Speaking at an industry conference, Gong said about a third of China’s coal miners were making losses in 2013, and a further fall in prices this year has meant that an estimated 80 percent of the total are in the red.Tumbling prices, caused by weaker demand due to slowing growth in China and a flood of cheaper imports, have forced many smaller miners out of business, while a slew of majors, including Shenhua Energy and Yanzhou Coal , reported losses for their 2013 results.This week, the benchmark Bohai Bay Steam Coal Index price rose 1 yuan to 531 per tonne after falling for 11 consecutive weeks.

Source: Reuters

Elle T. // SMC Editor

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