China-funded coal stocks weaken in administrative power

Chinese coal stocks followed the big city this morning, with China Shenhua (01088-HK) and 01898-HK, which fell nearly 1% for a half-day, and the earlier signing of a key coal contract and a 4% per cent rise in the price of Yanzhou coal (01171-HK) spit nearly 3%. Or the electricity coal negotiations have not been helped drag. As the government may intervene in the coal negotiations and direct the price of electricity coal to rise slightly, China's national Development and Reform Commission said it would never intervene in the coal negotiations, saying that under the current market conditions, the possibility of government guided prices is getting smaller, according to domestic media.　　Instead, local companies negotiate pricing, thereby reducing bargaining chips for coal companies.　　There are market comments that the coal and electricity parties, such as the market price to sign a final agreement; In view of the recent rise in coal stocks, and Shanxi part through the security of the small coal mine will be again and again production, supply increased price pressure, so that the bargaining balance to the power enterprises tilt. According to data released by China Coal Transportation Association, as of Monday, the coal stocks of Qinhuangdao port, the main coal transport ports, still hold at 5.12 million tonnes, but the benchmark spot coal price has slipped by 10 yuan. Coal inventories are expected to rise as traders hoard coal in the port to await a recovery in coal demand.