China's benchmark power coal price rebounds
BEIJING - China's benchmark power coal price rebounded on Wednesday after falling for ten consecutive weeks, a signal that a periodic upward trajectory may begin amid expected power use increases in summer.
The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China's major ports published weekly, grew 0.36 percent from a week ago to 564 yuan ($83.02) per ton, according to Qinhuangdao Ocean Shipping Coal Trading Market Co Ltd.
The price hike ended a losing streak over the past two-plus months, when coal demand in downstream thermal power plants continued to shrink.
Analysts believe the prices will be propped up in the coming months as the country's electricity consumption braces for its seasonal peak.
Despite previous drops, the coal price was still about 40 percent higher than a year ago, partly due to the country's capacity cuts in the glutted coal and steel sectors, among others.
The National Development and Reform Commission in May announced detailed plans to continue downsizing saturated heavy industries, with 150 million tons of coal capacity to be phased out this year. As of the end of April, about 69 million tons of coal capacity had been cut, accounting for 46 percent of the goal.
