China's benchmark power coal price remains flat

China's benchmark power coal price remained flat during the past week.

The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China's major ports, stood at 550 yuan (about 78.59 U.S. dollars) per tonne Wednesday, according to Qinhuangdao Ocean Shipping Coal Trading Market Co. Ltd.

Analysts said that at present, the over-expected increase in imported coal has supplemented the inventory of downstream firms. In addition, residential electricity demand was relatively insufficient, which made coal demand lower than expected.

Multiple factors restricted the production capacity of main producing areas. Coal prices, however, have shown signs of stopping falling in some production areas, supporting the prices in the coastal coal market.

In 2019, the mid-term and long-term agreements on coal were fulfilled well, effectively ensuring the stability of coal supply and having obvious effect on stabilizing prices in the spot market, according to analysts.

Released every Wednesday, the BSPI is a leading indicator of China's coal prices.