China Coal-Prices higher as port stocks hit 11-mth high

SHANGHAI, Nov 3 - Spot thermal coal prices in China's top coal shipping port Qinhuangdao edged up 1 percent from a week earlier, as stocks at the port mounted to their highest level in nearly 11 months before inching lower.

Coal stockpiles in Qinhuangdao shot up 39 percent from a week earlier to 7.8 million tonnes on Tuesday, after hitting 7.9 million tonnes on Monday, the highest since early December last year, analysts said.

The foggy weather at the port has prevented loading of the hydrocarbon, contributing to the rapidly increasing stocks, analysts said.

Meanwhile, the coal transportation capacity of Daqin Railway, which links the port with Shanxi's Datong, a key coal producing area, has returned to normal operations after maintainance.

But the high stockpiles have so far failed to weigh down prices.

"We are entering the high consumption season, and it's really hard to say whether such high stocks would pressure prices," said Lu Ping, an analyst at China Merchants Securities.

Prices for coal with calorific value of 5,800 kcal/kg (NAR) gained 1 percent on the week to 660 to 680 yuan ($96.7 - $99.6) a tonne, at their highest in nearly a year, according to the Qinhuangdao Seaborne Coal Market (www.cqcoal.com).

Coal with calorific value of 5,500 kcal (NAR) edged up 5 yuan to 630 to 640 yuan a tonne. ($1=6.826 Yuan)