Ann: KRL Signs Chinese Offtake Partner , page-31

not really hawk,
wonder if this is relivant to coal sold by krl.
off to check the quality of krl,s coal now


Wednesday, April 7, 2010
China Coal-Prices unchanged; eyes on China drought

SHANGHAI, April 7 - Spot coal prices in China's top coal port Qinhuangdao stayed unchanged from a week earlier, while market players monitored the severe drought in the southwest, which may further raise coaldemand in southern China.

Traders and analysts were also keeping an eye on developments in a few high-profile coal mine accidents in the past week, for clues on whether supply would be curbed by tighter government regulation. [ID:nTOE635047][ID:nTOE63008L]

The prices of coal with calorific value of 5,800 kcal/kg (NAR) was unchanged from a week earlier at 725 yuan($106.2) to 735 yuan ($107.7) a tonne, said the Qinhuangdao Seaborne Coal Market (www.cqcoal.com).

Coal with calorific value of 5,500 kcal/kg (NAR) was quoted at 675 yuan to 685 yuan a tonne, it also said.

"We've noticed lately there's been an increasing number of coal vessels heading down to eastern and southern China from Qinhuangdao, as thermal coal demand in Guangdong has gone up due to a lack of hydropower supply from southwestern provinces," said Judy Zhu, an analyst at Standard Chartered.

Zhu expected Qinhuangdao prices to resume their ascent if the drought, which has already cut down power supply in provinces of Guangdong and Hubei, does not ease.[ID:nTOE63300W]

Coal stocks in Qinhuangdao fell 5 percent from a week earlier to 7.6 million tonnes on Tuesday, the lowest since end of February, according to port data published on sxcoal.com, an industry data website.

Despite the drought, demand for imported coal has yet to pick up, traders said.

"We expect demand for imported coal to heat up again soon, but right now there's hardly any support from the drought or mine accidents," said a Guangdong-based trader.

"After all, it's the low season and power plants had quite high stockpiles."

Coal stocks at China's key power plants stood at 42.56 million tonnes on April 4, sufficient for 12 days of use, down 2 percent from a week earlier, from according to data published on sxcoal.com. ($1=6.825 Yuan)