China's benchmark power coal price edges down

BEIJING: China's benchmark power coal price went down slightly during the past week as stable supply eased panic buying. The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China's major ports published weekly, slipped 0.17 percent from a week ago to 577 yuan ($90) per ton, according to Qinhuangdao Ocean Shipping Coal Trading Market Co Ltd.

The index was 2 percent lower than the same period last year. The coal price had been rising since the end of November due to seasonal demand until government policies to ensure supply reined in the gaining streak. Coal stock at Qinhuangdao port has remained above 7 million tons for 12 straight days. The approaching Spring Festival holiday has also curbed coal deals by factories that are scheduled to suspend production, analysts said.

China is in the middle of capacity cuts in coal and steel sectors. Last year's annual targets to slash steel capacity by around 50 million tons and coal by at least 150 million tons were fulfilled in August and October, respectively.

East China's Shandong province saw reduced coal consumption in 2017 as it slashed production in energy-consuming industries and promoted the use of new energy.

Coal consumption dropped by 6.6 percent year-on-year in 2017, which was the biggest margin in 10 years, said Wei Huaxiang, deputy secretary-general of the Shandong provincial government. The provincial government drew up a plan to replace coal use with new energy sources. Electricity generated by new energy reached 34.5 billion kilowatt hours last year, up 29.7 percent year-on-year.