Qinhuangdao coal may extend fall from record as summer ends

Coal at Qinhuangdao, China's largest port for the fuel, has fallen from a record and may extend declines as utilities cut purchases at the end of summer.

The price for immediate delivery, excluding shipping costs, fell 2.06 yuan (27 cents) to 562.20 yuan a metric ton, for the two weeks ended Aug. 24, according to McCloskey Group. Prices have risen almost threefold in the past five years and reached a record 564.20 yuan in the two weeks ended Aug. 10.

"Looking at past years, prices in August and September will fall because of the end of the summer season," said Michael Wang, a Shanghai-based coal analyst with KGI Securities Ltd. "Prices will pick up again in October ahead of winter."

China, the world's biggest coal producer and consumer, burns the fuel to generate 78 percent of its power. Prices rose to a record earlier this month because of increased use of air- conditioners and exports to Japan. An earthquake led Tokyo Electric Power Co. to boost use of coal-fired generators to cover for output lost after the closure of a nuclear plant.

China's coal imports surged 50 percent to 30.96 million tons in the first seven months while exports fell 21 percent to 28.86 million tons, according to customs data on Aug. 15.

The nation became a net coal importer for the first time in January as power demand increased in the world's fastest-growing major economy, ending its self-sufficiency and contributing to higher international prices.