Thursday 26 July 2012

Coal freight rates from Qinhuangdao to S China ports rise for second week

Huaihua, Hunan (Platts)--25Jul2012
Freight rates for shipping coal from northern China's Qinhuangdao Port to the country's southern ports of Shanghai, Zhangjiagang and Guangzhou continued to edge up for the second week in a row, according to a statement Wednesday by by Qinhuangdao Port.

In the week ended July 25, the freight rate for vessels with a capacity to carry 20,000-30,000 mt of coal from Qinhuangdao to Shanghai rose Yuan 1.30/mt week on week to an average Yuan 30.30($4.74)/mt; the rate between Qinhuangdao and Zhangjiagang rose Yuan 2.50/mt to Yuan 32.50/mt; while the rate between Qinhuangdao and Guangzhou was up Yuan 2/mt to Yuan 60/mt.

The Qinhuangdao Port attributed the rising freight rates to recent restocking activity by power plants in the country.

Coal stocks at Qinhuangdao Port stood at 8.41 million mt Wednesday, slightly down from 8.47 million mt a week ago, according to port data. Coal stocks at the port have been falling weekly since hitting a record high of 9.47 million mt on June 13, with market sources attributing the downward trend to production cuts in coal mining provinces such as Henan, Shanxi, and Shaanxi, in addition to power plants' restocking activity.

Meanwhile, Qinhuangdao Port said Wednesday its weekly reference FOB price was Yuan 625-635/mt, equivalent to $97.73-99.29/mt or $83.53-84.86/mt excluding 17% VAT, for 5,500 kcal/kg NAR thermal coal, similar to a week ago. The price is well below the Yuan 800/mt FOB (including 17% VAT) cap set by the central government for 5,500 kcal/kg spot thermal coal at northern Chinese ports, effective from January 1.

--Reggie Le,
--Edited by Deepa Vijiyasingam

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