China's coastal coal freight market has plunged into recession as demand remained weak, forcing transporters to cut prices. The China Costal Bulk Freight Index (composite index) fell 1 percent to 826.80 during the period from September 3 to 11. Meanwhile, the China Costal Bulk Freight Index (coal) declined 1.3 percent to 820.62, according to the Shanghai Shipping Exchange (SSE).
Residential power consumption dropped substantially in September and industrial power consumption remained sluggish. The majority of power plants kept half of their facilities idle to cope with weak electricity demand. Statistics showed that the six biggest power plants in China's costal areas used 527,000 tonnes of coal in September 11.
Their coal stocks rose to 13.8 million tonnes on September 11, enough for 26 days of power generation. In addition, coal prices continued to fall, enhancing the market's wait-to-see attitude. The demand for coastal coal transport decreased further. The SSE estimated that coastal coal freight will not rebound in the near future and coal shipping costs will continue to decline.
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