Coal market off despite cold weather

China's coal market continued to cool despite plummetting temperatures and increased demand as the winter heating season looms in northern China.

The Bohai-Rim Steam-Coal Price Index, a gauge of coal prices in northern China's major ports that is published every week, closed at 585 yuan ($89.05) per metric ton, declining by 1 yuan from the level a week earlier. Transaction volumes in the Bohai-Rim steam coal market have been slowing since the end of September after several coal producers reduced sale prices, according to a note issued by the China Coal Transport Association.

Shenhua Group and China National Coal Group cut coal prices by 10 yuan per ton of coal in the northern port market on Sept 28. They were subsequently joined by 24 major local coal companies such as Datong Coal Mine Group.