Weather tightens coal supply in China

The demand for coal has been sharply rising in China due to heavy snow and continued low temperatures in many parts of the country. In some cities, coal reserves have already dropped below warning levels.

The port city of Qinhuangdao is a major transport and trade hub for coal. Market indices here show that coal prices have surged by more than 1 percent over the last week. Transport fares are also rising. The average fare to transport coal from Qianghuangdao to Shanghai has risen by nearly 13 percent. Industry insiders say the price hike is likely to continue.

In the port city of Zhenhai, in east China's Zhejiang province, coal reserves have dropped below the 10-day 600-thousand ton warning level. Thanks to recent favorable weather conditions in north China where coal is shipped from, the port city has received 3 ships of coal, adding nearly 70-thousand tons to its reserves.