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Coal prices tumble as supplies pile up

Source:Global Times Published: 2012-7-9 23:00:03

The price of 5,500-kilocalorie thermal coal in the Bohai Economic Rim - the manufacturing and industrial zone between Tianjin and Beijing - has fallen for the ninth straight week to a record low of 676 yuan ($106) per ton as of June 4. Due to sluggish demand and growing stockpiles, the price of 5,500-kilocalorie thermal coal will probably drop further to 600 yuan per ton, said Zhang Zhibin, a coal analyst.

Demand for coal will remain weak due to overcapacity in downstream industries, such as the steel sector, explained Zhang. On July 1, coal stocks in Qinhuangdao, one of China's major coal ports, reached 8.57 million tons, above the normal level of 5 million tons.

 

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