China Coal-Spot prices up, plant stocks sufficent

SHANGHAI, Nov 19 - Spot coal prices in Qinhuangdao, China's top coal shipping port, continued climbing this week, as a cold spell aroused concerns over coal supply, but so far most power plants are sufficiently stocked, industry officials and analysts said on Thursday.

Early and heavy snow in northern and central China, including the top coal producing province Shanxi, in the last 10 days disrupted road transportation and slowed the flow of coal, prompting fears of a repeat of severe coal and power shortages in central China in early 2008.

"All 541 power plants connected to the State Grid have reasonable coal stock levels. None has coal stocks lower than alarming levels," said an official of the State Grid, adding that "alarming levels" vary from 3 to 15 days at different plants, depending on their locations and distance from the coal source.

"The influence from the cold spell is almost over," he said.

Average coal stocks at power plants connected to major grids, were enough for 14 days of use, an official with the China Electricity Council said.

But in the eastern province of Anhui, some power plants' coal stocks dropped to a dangerous level just enough for 2 days of use earlier this week, the Anhui Economy and Technology Commission said on its website (www.ahec.gov.cn).

Coal used in Anhui, however, mainly comes from its own coal mines.

QINHUANGDAO PRICES UP, STOCKS DOWN

Coal stockpiles in Qinhuangdao fell nearly 11 percent from a week earlier to 7.6 million tonnes, still higher than the usual levels of 5 to 6 million tonnes, as outflow of coal quickened after foggy and windy weather eased, analysts said.

"The foggy weather around northern ports did cause coal stocks in eastern China's power plants to fall, but since they had just stocked up sufficient coal for the winter, the impact wasn't serious," said the State Grid official.

"And now since the fog has lifted, their coal stocks are being replenished as shipping recovered."

Coal with calorific value of 5,800 kcal/kg (NAR) rose 1 percent from a week earlier to 680 to 700 yuan ($99.6 to $102.5) a tonne, nearly one-year high, 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 640 to 660 yuan a tonne, up nearly 2 percent from a week earlier, the website also said.

"Coal prices are likely to be stable in the near term, as downstream stockpiles are decent," said Lu Ping, an analyst at China Merchants Securities. ($1=6.826 Yuan)