China's large coal producers reduce Feb seaborne coal prices by 7-20 yuan/t

2017-02-10 09:44:00 Company,  Price,  Ports,  Ocean-carriage,  Thermal Coal sxcoal.com


China's coal giants Shenhua Group and China National Coal Group reduced prices of seaborne thermal coal for February loading by 7-20 yuan/t, according to market sources.


The two groups were said to offer 5,500 Kcal/kg NAR coal at 569 yuan/t including VAT for customers with annual contracts, down 7 yuan/t month on month; while the same material is offered at 610 yuan/t for those with monthly contracts, down 20 yuan/t from January.


China's thermal coal prices may face further downturn as production resumes at mines after the Spring Festival holidays.


One domestic trader said current price of 5,500 Kcal/kg NAR coal with 0.8% sulphur stood at 590 yuan/t with VAT, FOB basis, while traders were still inactive to purchase. He predicted the domestic coastal coal market to go down and prices to drop, adding activeness of the market may improve after the Lantern Festival on February 11.


One trader at producing base expected coal prices at ports to further fall slowly in the near term, given sliding coal prices at production areas.


Mongolian 5,500 Kcal/kg NAR coal was concluded at 600 yuan/t recently, inclusive of VAT, on FOB basis; that with 0.8% sulphur was offered at 595 yuan/t, and 5,000 Kcal/kg NAR coal at 535 yuan/t, according to the second trader.


On February 9, the Fenwei CCI Thermal Index assessed domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port at 592 yuan/t FOB with 17% VAT, falling 6 yuan/t from post-holiday February 3 and 15 yuan/t from a month ago.


On the same day, the price of domestic 5,000 Kcal/kg NAR coal was assessed at 530 yuan/t, FOB basis with 17% VAT, down 6 yuan/t from February 3 and 10 yuan/t month on month.


Meanwhile, stockpiles dropped notably at ports due to the Spring Festival holidays. As of February 9, coal stocks at Qinhuangdao port fell 760,000 tonnes or 12.82% from the beginning of the month to 5.17 million tonnes.


By contrast, power plants had relatively high coal inventory and were not willing to restock after the seven-day holiday. This may get worse with the approaching of slack season of coal consumption during which daily consumption could be limited.


On February 9, coal stocks at China's six key power plants totaled 11.9 million tonnes, a rise of 986,000 tonnes from the beginning of February; their daily consumption averaged 462,000 tonnes, rising 35,000 tonnes from eight days ago.


At coal producing bases including Inner Mongolia and Shaanxi, coal transport was interrupted by heavy snow these days, which impacted on outbound coal sales.  


Most coal miners held coal prices firm at the pre-holiday level in Mongolia, with some producers adjusting down prices slightly.


In Shaanxi's Yulin city, large miners reduced coal prices at Yuyang district after the holiday, indicating miners' bearish sentiment about the near future market; while coal producers expected coal prices to remain stable as a whole with small drops at Shenmu district.



(Writing by Evie Feng   Editing by Jessie Jia)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Editors Recommendations

1 Policy-related risks looming over Chinese thermal coal import 2017-05-22

Traders in China may face risks in importing and reselling imported thermal coal into the country, as yet-to-be-unveiled stricter restriction measures are believed to hit imports of low-quality coal.

2 China's Apr coking coal exports may rise as global steel makers seek substitute 2017-05-22

China's coking coal exports will probably increase in April, as major steel importers worldwide have to seek substitute amid a supply shortage of Australian coking coal, experts predicted.

3 China to further speed up reduction of coal consumption 2017-05-22

China will speed up utilization of industrial waste heat and shallow geothermal energy to replace coal consumption in the future, authorities said in a recent summit. "By 2020, China will

4 Fujian Zhangzhou port Jan-Apr coal imports up 18.67% on yr 2017-05-22

China's southeastern coastal province of Fujian imported 347,700 tonnes of coal via its Zhangzhou port over January-April, increasing 18.67% on the year, showed the latest data from Zhangzhou Entry-Ex

5 China to close only offshore coal mine amid capacity cuts 2017-05-22

China will close its only offshore coal mine in October, which has been in operation for more than 30 years, as the government toughens its efforts to phase out excess production capacity.

6 Weekly global coal market news summary (May 12-May 19) 2017-05-19

Global coal market seen in 16 Mt oversupply in 2017 The global coal market is forecast to hit an oversupply of 16 million tonnes this year as production increase, Reuters reported on May 14,

7 China Coal Daily Track (May 19) 2017-05-19

Thermal coal Domestic market Thermal coal miners in northern Shanxi suffered weakening sales amid environmental check, and some of them reduced coal prices by 10-20 yuan/t under mounting i

8 China's NDRC vows to kick low-quality steel out of market 2017-05-19

China's top economic planner, the National Development and Reform Commission (NDRC), pledged to eliminate low-quality steel and optimize steel industry structure. The central government s

9 Taiyuan coal-fired boilers clean-out battle kicks off 2017-05-19

Capital city Taiyuan of northern China's Shanxi province pledged to dismantle 638 coal-burned boilers within a limit time, announced the municipal government in a statement recently. The

10 Prices on decline at thermal market in S. China 2017-05-19

Prices of thermal coal further edged down at southern China ports, as no signs of improvement were seen in demand. Trades remained flat and dropping prices at production bases and norther

Most Read Articles

1 Global coal market seen in 16 Mt oversupply in 2017 2017-05-15

The global coal market is forecast to hit an oversupply of 16 million tonnes this year as production increase, Reuters reported on May 14, citing Noble Resources chief coal analyst. "Thos

2 Indonesia coal production seen to increase 5% this year and next 2017-05-15

Indonesia, the world's top thermal coal exporter, could increase production of the fuel used in power stations by 5% in 2017 and 2018, Reuters reported on May 14, citing the country's leading coal

3 China determined to push capacity-cut drive 2017-05-15

China is determined to gain some ground on its key battlefield - addressing industrial overcapacity, Xinhua reported. The phasing out of sub-standard production capacity will continue, es

4 Hebei admits more lapses in pollution, overcapacity fight 2017-05-16

China's Hebei province is not properly enforcing policies to cut pollution or reduce chronic overcapacity in major industrial sectors like steel and coal, Reuters reported, citing the environmental bu

5 Adani to begin producing coal from Australian project in FY21 2017-05-16

Indian conglomerate Adani Group plans to begin extracting coal from the $16.5 billion Carmichael project in Australia in 2020-21, PTI reported on May 14, citing ChairmanGautam Adani.

6 China, India surpass U.S. as most attractive renewables markets 2017-05-16

China and India have surpassed the United States to become the two most attractive countries for renewable energy investment, Reuters reported on May 16, citing a report by UK accountancy firm Ernst &

7 Beijing-Tianjin-Hebei area to totally ban coal burning 2017-05-17

Beijing-Tianjin-Hebei area, China's major high-tech and heavy industrial base, will speed up achieving "zero" coal-burning in this place, announced the Ministry of Environmental Protection (MEP) in a

8 India's coal output expects to boom temporarily 2017-05-17

A report by the Indian government indicates the country will double its coal output to 1.5 billion tonnes by 2020, Power Engineering reported on May 16. As the world's third largest coal

9 Colombia coal output up 3 pct in Q1 2017-05-17

Colombia's coal output increased 3% to 22.2 million tonnes in the first quarter of this year, compared with the same period in 2016, the National Mining Agency said in a statement on May 16.

10 China, India dominate coal ownership as some shun climate risks 2017-05-17

Investors in China and India increasingly dominate ownership of coal reserves amid campaigns for divestment in many rich nations to limit the risks from climate change, Reuters reported, citing a stud