By the end of the week prices for thermal coal have risen to a six-year maximum. The incredible heat afflicting most of the Celestial Empire has become their reason. Exactly high temperatures caused the increased demand for this type of energy.
The authoritative agency Bloomberg informs that the thermal coal price in the port of Newcastle has grown to the level of 112.05 US dollars per ton. Thus, the price of this energy resource has increased by 24% since the recently recorded low in the mid-spring.
For the first time in five years the coal market has moved from the drop to the growth. We recall that the continuing fall in prices for this fossil fuel has resulted in the closure of many mines and a loss of jobs by a great amount of workers.
In the Chinese port of Qinhuangdao, spot coal has risen in price by about 18% since April. At the beginning of the week, its value rose to a maximum from the early spring – to the level of 667 yuan (about 104 US dollars) per ton. Official Beijing plans to lower the price by Monday to the mark of 570 yuan per ton.
Everyone knows that the Chinese authorities are eager to transfer their production facilities to more environmentally-friendly options. But this process cannot be objectively fast; therefore coal remains one of the main sources of thermal and electric energy in China.
Changeable weather has exhausted the national reserves of energy. In May, the daily consumption of coal by the six largest generating companies was the highest since January – 722 thousand tons. As a result, China has increased coal import in January-May by 8.2%, to 120.7 million tons. In April, coal supplies to China from Australia reached historic highs.
In May, the total volume of coal imports to China increased by 0.2% compared to the previous month- to the level of 22.3 million tons.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade