BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Coal

High stockpiles at Chinese power plants to put pressure on thermal coal prices: Citi

Commodities | Metals | Steel

Will China's steel production, capacity additions result in another export flood?

Coal

Platts Global Coal Alert

Oil | Refined Products | Fuel Oil | Shipping | Dry Freight | Marine Fuels | Tankers

Mediterranean Bunker Fuel Conference, 8th Annual

Oil

Refinery news round-up: Turnarounds, new launches in focus in Asia-Pacific

High stockpiles at Chinese power plants to put pressure on thermal coal prices: Citi

Singapore — China's thermal coal demand has been on the rise in the lead up to the summer peak season, but high inventories at power plants could continue to put pressure on thermal coal prices in the coming weeks, Citi analysts said in a note Thursday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The country generated a total 544 TWh of electricity in April, which is an increase of 3.8% year on year. However, this was down 4.5% from March when China generated around 569.8 TWh, according to data by China's National Bureau of Statistics released Wednesday.

"The weakness in power demand echoes tepid industrial production, which may come to an end if policy stimulus accelerates," according to the research note.

The NBS data showed that thermal power generation in April decreased 0.2% year on year. Power generation from renewable energy showed strong performance in April with hydro generation up 18.2%, while nuclear and solar energy jumped 28.8% and 13.4%, respectively.

Renewable energy including hydro, nuclear, wind and solar power accounts for 25.4% of power generation for the period of January to April, up 1.8 percentage points year on year, the data showed.

"Coal demand, despite being relatively flat year on year, has been rising heading to the summer peak season," the note said.

It added that coal inventories at power plants remain ample and could continue to put pressure on thermal coal prices in the coming weeks.

Daily power consumption in China has been on the rise in recent days from around 550,000 mt last week to around 619,000 mt Thursday due to warmer weather.

Stockpiles at major power utilities were reported to be around 16.32 million mt, enough to last for around 26 days of burn, according to China-based market sources.

S&P Global Platts assessed the most liquid Indonesian 4,200 kcal/kg NAR grade of coal at $39.10/mt FOB Kalimantan on Wednesday, down from $39.45/mt FOB on May 2.

The weakening of demand comes as the Chinese Yuan softens against the US dollar amid the ongoing US-China trade dispute.

April raw coal output growth slowed to only 0.1% year on year, with weaker growth compared with March, as intense mining safety checks likely weighed on domestic production, Citi noted.

-- Hui Min Lee, hui.min.lee@spglobal.com

-- Edited by Norazlina Jumaat, newsdesk@spglobal.com