Chinese Coal Drops to Lowest Level Since October 2009

Bloomberg reported that spot coal with an energy value of 5,500 kilocalories per kilogram fell to 600 to 615 yuan per metric ton, its lowest level since October 2009, at the port of Qinhuangdao, as per data from the China Coal Transport and Distribution Association. A contraction in manufacturing is responsible for the decline.

As quoted in the market news:

‘The low coal price is mainly because of sluggish domestic demand, especially from the heavy industrial sectors,’ said David Fang, a Beijing-based director at the China Coal Transport and Distribution Association. ‘Sufficient rainfall in southern China is squeezing China’s demand for burning thermal coal. The price will stay at a low level throughout this quarter.’

Click here to read the full Bloomberg report.