Freight rates for shipping coal from northern China's Qinhuangdao Port to the country's southern ports of Shanghai, Zhangjiagang and Guangzhou stabilized after rising for two weeks, Qinhuangdao Port said Wednesday.
The rates stabilized after power plants halted their purchasing activities and amid an oversupply of coastal freight vessels, Qinhuangdao Port said in the statement.
In the week ended July 31, the freight rate for vessels with a capacity to carry 20,000-30,000 mt of coal from Qinhuangdao to Shanghai rose Yuan 0.9/mt week on week to an average Yuan 31.2 ($4.74)/mt.
The rate for vessels with a capacity to carry 20,000-30,000 mt of coal between Qinhuangdao and Zhangjiagang also edged up Yuan 0.9/mt to Yuan 33.4/mt.
While the rate for vessels with a capacity to carry 50,000-60,000 mt of coal between Qinhuangdao and Guangzhou slipped Yuan 0.6/mt week on week to Yuan 37.3/mt.
Meanwhile, Qinhuangdao Port said Wednesday its weekly reference FOB price was Yuan 620-630/mt, equivalent to $97.34-98.91/mt, or $83.20-84.54/mt excluding 17% VAT, for 5,500 kcal/kg NAR thermal coal, down Yuan 5/mt week on week.
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