In Qinghuangdao Port, coal stockpiles have accumulated like small hills. And they are growing, with large trucks continuing their transport of tons of coals.
This is in stark contrast to several months ago, when there was a shortage of coal supplies. During the snowstorms at the beginning of the year, and in June and July, there was only enough coal in Qinghuangdao to last for a few days before it was shipped away. But now, there are 8 million tons of coal.
And at the same time, coal prices are dropping.
Wang Kai, Market Manager of Qinhuangdao Coal Transaction Market said "Since August, coal prices have continued to fall. For example, a certain kind of coal was sold at 1,030 yuan per ton. Its price has now dropped to 860 or 870 yuan per ton."
It's not just Qinghuangdao that has seen an excess supply of coal. Some ports in the north and south are all experiencing the same situation. Most power plants have coal stocks that can last more than 20 days. Normally, they have coal stocks that can last 15 days.
In addition, there have been decreases or only slight increases in electricity demand from Shanghai, Beijing, Tianjin, Shandong, Jiangsu and Zhejiang.
Some analysts say small and medium exporters in the south have been forced to stop or reduce operations due to the global financial uncertainty. And this has contributed to the fall in electricity demand. As a result, power plants, the major consumers of coal, have had to slash their coal demands.
(CCTV October 21, 2008)
