According to industry portal China Coal Resource the price of thermal coal produced in the northern areas of coal-rich Shanxi province rose slightly this week after keeping steady for 2 weeks.

Presently, the mine-mouth price for thermal coal with heating value of 6000 kilocalories per kilogram and 5500 kilocalories per kilogram in Datong was CNY 665 per tonne and CNY 625 per tonne respectively, inclusive of VAT both up CNY 10 per tonne from a week ago. Meanwhile, that of 4800 kilocalories per kilogram and 5500 kilocalories per kilogram in Shuozhou rose CNY 5 per t to CNY 410 per tonne and CNY 525per tonne.

According to analyst of CCR the price rise was mainly attributed to the maintenance of Daqin railway and the suspension of coal mines in Shuozhou where a fatal accident happened in mid-September. The maintenance of Daqin railway started on September 21 has reduced 150,000 tonnes of coal haulage to Qinhuangdao port each day on average.

Additionally, the shutdown of coal mines in Shuozhou area is estimated to last for more than 20 days as Shanxi is holding the Expo Central China 2011 during September 26-28 and China will celebrate the National Day on October 1.