<article><p class="lead">Typhoon Hagupit has disrupted coal handling at Chinese ports and raised freight costs for coal vessels, although the impact on utilities has been minimal because of high stocks at coastal power plants.</p><p>Typhoon Hagupit made landfall in south China on 4 August and moved northeast along the coast.</p><p>Freight rates for 50,000-60,000t vessels transporting coal from the key coal-handling port of Qinhuangdao in north China to south China's Guangzhou port reached 34.60 yuan/t ($5/t) yesterday, the highest since 28 May, according to Shanghai shipping exchange data. </p><p>Freight rates for 40,000-50,000t coal vessels transporting coal from Qinhuangdao to east China's Shanghai port registered a smaller rise to Yn19/t yesterday, the highest since 21 July.</p><p>Coal offtake from Qinhuangdao port dropped to a two-and-a-half-month low of 363,000t on 4 August, according to data released by coal industry association the CCTD. </p><p>Separately, heavy rainfall that began in the major coal-producing province of Shaanxi earlier this week has disrupted operations at open-cast mines and coal transportation logistics. The rain is forecast to last until tomorrow, which may continue to curb coal supply from the province.</p><p>Heavy rains are also hitting major coal-producing Shanxi province, although the impact on local coal production is not likely to be as severe as in Shaanxi as mines in Shanxi are mostly underground. </p><p>Higher freight costs and a reduction in domestic coal supply caused by the typhoon have had little impact on utilities because of high stocks. Inventories at major Zhejiang-based utility Zhejiang Power reached 4.6mn t on 2 August, the highest since 9 April, the CCTD said. </p><p>Domestic coal prices continued to edge lower today on sluggish demand. Bids for NAR 5,500 kcal/kg coal were at around Yn560-562/t fob ports in north China today while offers were at about Yn565/t fob. <i>Argus</i> last assessed prices of Chinese domestic NAR 5,500 kcal/kg coal at Yn570.92/t fob Qinhuangdao on 31 August.</p></article>
