(Updates with analyst comment in third paragraph.)
Jan. 5 (Bloomberg) -- China’s benchmark thermal coal price at Qinhuangdao port fell for a fifth straight week as warm weather and the Chinese Lunar New Year reduced demand.
Coal with an energy value of 5,500 kilocalories per kilogram declined as much as 1.8 percent from a week ago to a range of 790 yuan to 800 yuan ($125.40 to $126.90) a metric ton, according to data published today by the China Coal Transport and Distribution Association.
Qinhuangdao coal rates may stabilize by the Lunar New Year holiday, which starts the week of Jan. 22, and may rebound when industrial activity resumes and power plants replenish their stockpiles, Li Xuegang, an analyst with the association, said by phone from Qinhuangdao.
The nation’s Bohai-Rim Steam-Coal Price Index, which tracks power-station coal prices at six ports including Qinhuangdao, fell 1.4 percent to 797 yuan a ton from a week earlier, the association said.
Factories and construction projects in the nation slow or halt operations this month as workers head to their hometowns to celebrate the festival. It curbs electricity consumption, two- thirds of which is fired by coal in China. Spot prices at northern China ports have been capped by the National Development and Reform Commission at 800 yuan a ton since the start of the year.
--Editor: Mike Anderson, Christian Schmollinger.
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