Datong-Qinhuangdao Railway, a major coal transport route from West to East China, is going to start a 20-day maintenance from October 8 until October 27.
The railway maintenance is estimated to reduce coal delivery by 160,000 tonnes/day, less than the 200,000 tonnes/day in previous year. Currently, coal stocks at Qinhuangdao port stands at 6.07 million tonnes, and is expected to drop 1 million tonnes or so during the railway maintenance.
As coal stock at coal companies remain high due to sluggish downstream demand despite sales promotion offered by large coal companies, the decreased coal supply caused by the railway maintenance would hardly shore up coal prices. Before the stock piling for winter heating, coal prices in China are not likely to rebound, insiders say.
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