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Qinhuangdao coal prices slide by 18% in a week

By Si Tingting (China Daily)
Updated: 2008-11-28 10:09

Coal prices at Qinhuangdao port, China's largest coal port, witnessed the sharpest fall in the year in the past week, with steam coal over 5,500 kilocalories dropping to 570 yuan per ton on Thursday, or 18 percent lower than that of seven days ago according to statistics provided by Qinghuangdao Port Group.

The dramatic coal price slide in China is largely due to the global economic downturn and dwindling domestic demand.

"We are still not sure how serious the coal demand contraction will be next year, but it will be our top concern," an unnamed source with China National Coal Association said to China Business News.

"Coal miners in China have agreed unanimously that they will prohibit selling below cost and will only make delivery upon purchase contract and full payment," the source said.