China Coal-Prices rise on demand, market seen in balance

SHANGHAI, Sept 15 - Spot thermal prices in China's top coal shipping port Qinhuangdao climbed from a week earlier, after prices stagnated for more than a month, as demand rose on the back of a recovering economy and was aided by hot weather in southern China, industry officials said on Tuesday.

Prices of coal with calorific value of 5,800 kcal/kg (NAR) rose 5 yuan from a week earlier, or about 0.8 percent, to 605 to 620 yuan ($88.6 - $90.8) a tonne, according to the Qinhuangdao Seaborne Coal Market (www.cqcoal.com).

Coal with calorific value of 5,500 kcal/kg was quoted in the range of 575 yuan to 590 yuan, up about 2 percent on the week.

"Demand from energy-intensive industries is coming back. In addition, the weather is still hot," said a power company executive based in the southern province of Guangdong.

China's power generation rose 9.3 percent from a year earlier to a record high in August, its fastest growth in 15 months, with the world's third-largest economy on course for recovery. [ID:nPEK374735]

The fatal mine blast in the central province of Henan last week that prompted the government to crack down on illegal small mines has had limited impact on the seaborne coal market, industry officials said.

"The thermal coal market is generally in balance," said a Beijing-based trader, "Henan's coal doesn't reach the coast and therefore has little impact." ($1=6.828 Yuan)