- Qinhuangdao spot coal price for 5,800kcal and 5,500kcal both rose by 10 yuan to 580 yuan/ton and 530 yuan/ton respectively in the week through October 14, BNP said in its China Coal & Power report. It was the first week on week price increase since April 22 after having fallen sharply since July, when the large domestic coal suppliers began cutting prices. The Bohai Bay coal index fell by 1 yuan to 530 yuan/ton. More coal suppliers are expected to resume operations on coal price recovery.
- China plans to shut down over 2,000 small coalmines by the end of 2015 to eliminate inefficient operations, according to the central government's website. Small coalmines are those producing less than 90,000 tons of coal per year.
- Excess inventory levels in China mean the recent coal price recovery is unlikely to last and a flat cost curve offers little support to pricing in the medium term, Citi argued in its China Coal report. It estimated inventories at Chinese coal producers have risen by over 20% since 2012 to 25 days, 10 days more than the normal level.
- China is plans to remove coal export duties in 2014 after imposing strict controls on coal exports for almost a decade, the 21st Century Business Herald reported, citing a person familiar with the matter. The export duty was first introduced to alleviate domestic coal supply shortage, but an ongoing downturn in the coal market downturn has made such controls not as necessary as before.
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