Coal prices at Qinhuangdao port rose by the largest amount since December 28 amid increasing demand for coal and a dry spell in China’s southwest, Bloomberg reported. Coal with an energy value of 5,500 kilocalories per kilogram increased in price by 2.8% from a week earlier, hitting US$105.4-106.9 per metric ton on Wednesday, according to data released by the China Coal Transport and Distribution Association. Demand for coal has increased as China, the world’s second-biggest electricity producer, has turned to coal-fired power plants during a six-month drought in the southwest that has reduced hydropower capacity. Over the past two months, Qinhuangdao’s coal inventories have fallen 43% to 4.62 million metric tons, according to statistics from Shanghai Steelhome Information.
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