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 CNY 676 ($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 CNY 600/t, 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 mt, above the normal level of 5mt