Hydropower generation grew 36 percent in May year-on-year, according to a National Development and Reform Commission statement last Wednesday.
"There is plenty of rain in the southern and eastern China, which helped hydropower generation increase," said Chen Lihui, a representative of a coal trading company in Hebei province. "The thermal coal market now has low prices, but no buyers."
Meanwhile, coal inventories at Qinhuangdao have reached 9.33 million tons, the highest level since November 2008. Any coal inventory above 8 million tons at the port is considered to be oversupply.