[Ferro-Alloys.com]Coal prices were slightly higher at Qinhuangdao Port, China's largest coal trans-shipment port, from Sept. 28 to Oct. 11, according to China Coal Transportation and Development Association (CCTDA) statistics released on Friday.

 

Domestic coal demand has recovered slightly in recent weeks thanks to seasonal gains as winter approaches, supporting local coal prices, CCTDA coal expert Qu Juan wrote in a research note on Friday. Hydropower output will also decline in the coming months, as the rainy season comes to an end in key hydropower generating regions, boosting activity at thermal power plants.

 

The long term outlook for coal prices remains bleak, however, amid an economic slowdown. The International Monetary Fund and World Bank this week both cut their forecasts for China GDP growth in 2012. Surging imports of the fuel coupled with weak coking coal demand from metal smelters will put pressure on prices in the medium term, wrote Qu.

 

Coal stockpiles at Qinhuangdao Port dropped to 5.83 million tons on Oct. 9 from 6.82 million tons on Sept. 9, according to CCTDA statistics, as domestic thermal power plants built up stockpiles in preparation for winter, when demand for heating is at its peak.