China Coal-Spot prices seen rising on seasonal demand

SHANGHAI, June 4 - Spot coal prices at China's top coal port remained unchanged for a fourth straight week, but analysts expect prices to climb as demand grows in summer.

At Qinhuangdao port, coal with calorific value of 5,800 kcal/kg was quoted in the range of 620 and 640 yuan ($90.8-$93.7) a tonne, unchanged from a week earlier. And prices of coal with calorific value of 5,500 kcal/kg were 580 yuan and 595 yuan.

Coal inflow into the port has grown after the end of annual maintenance of the main railway linking the port with Shanxi, China's top coal producing province, pushing stockpiles at the port up nearly 35 percent from a month earlier, analysts said.

Qinhuangdao coal stocks had risen to 5.2 million tonnes on Wednesday, they said.

"Prices are likely to rise due to the approach of the peak demand season, despite that transportation to Qinhuangdao has improved," said Chen Liang, an analyst with Everbright Securities, adding that ex-mine prices were already rising.

China's power production has been been declining for seven months straight, due to lacklustre industrial activity, which consumes three quarters of China's electric power.

In May, China's power production fell 3.54 percent from a year earlier, flat against April's decline of 3.55 percent, the official Xinhua news agency said.