Freight rates for shipping coal from northern China's QHD 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 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 QHD to Shanghai rose Yuan 1.30/mt week on week to an average Yuan 30.30($4.74)/mt; the rate between QHD and Zhangjiagang rose Yuan 2.50/mt to Yuan 32.50/mt; while the rate between QHD and Guangzhou was up Yuan 2/mt to Yuan 60/mt.
The QHD Port attributed the rising freight rates to recent restocking activity by power plants in the country.
Coal stocks at QHD 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 of9.47 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, QHD 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.