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China's benchmark power coal price edges down

Source: Xinhua| 2018-07-21 21:02:00|Editor: ZX
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BEIJING, July 21 (Xinhua) -- China's benchmark power coal price decreased slightly from a week ago due to government efforts to ensure sufficient supply and a slowing coal consumption.

The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China's major ports, stood at 569 yuan (around 84 U.S. dollars) per tonne in the past week, slightly down from 570 yuan a week ago, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.

Analysts said the price would likely start a losing streak after staying flat for weeks.

The government pro-supply measures have effectively reined in the rising momentum of coal prices during this year's peak season when high temperatures usually lead to a surge in power demand.

Meanwhile, coal use growth in downstream sectors has begun to soften. The stocks increased in coastal coal-fired power plants, reaching 15.43 million tonnes on July 12, the highest in nearly five years.

The benchmark price was 2.23 percent lower than that in the same period of 2017.

China is in the middle of capacity cutting in its overloaded coal sectors, with plans to reduce 150 million tonnes of capacity this year.

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