China’s benchmark power coal price dropped slightly during the past week.
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China’s major ports, stood at 555 yuan (about 79 U.S. dollars) per tonne Wednesday, a drop of three yuan week on week, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.
Analysts said that in early March, the balance between supply and demand was broken in the domestic coal market, resulting in a drop in coal prices. With the global outbreak of COVID-19, the global economy had suffered a severe setback. Pessimism over the coal market had been heightened by the downturn in the energy industry.
Coal inventories at ports had risen sharply, strengthening buyers’ bargaining power. Given lower logistics costs, coal traders tended to clear coal stocks, which also led to falling coal prices, according to analysts.