Weekly China coal market news summary (Feb 13-Feb 17)

2017-02-17 15:19:00 General,  Price,  Import & Export,  Production & Sales sxcoal.com

China may resume 276-working day rule at coal mines

China may ask coal mines presently operating 330 days annually to produce on a 276-working day basis from mid-March, when the winter heating ends in northern China, in order to prevent the reemergence of excess capacity, market sources said.


The 276-working day rule may last till the end of August, disclosed sources. The plan has been submitted to the National Development and Reform Commission and is still under discussion, one source said.


China to control IPO, refinancing of coal, steel cos, CSRC

China Securities Regulatory Commission (CSRC) announced lately to strictly control IPO (Initial Public Offerings) and refinancing of domestic coal and steel producers, in order to prevent companies from expanding production capacity.


It was expected to guarantee the implementation of the nation's capacity cut policy in both coal and steel industries, and put the two pillar industries onto a more sustainable and healthy track.


In 2016, the financing (cash) amount by IPO and refinancing totaled 1.33 trillion yuan, a year-on-year increase of 59%, with financing amount by IPO hitting a five-year high, showed data from the CSRC.


Shenhua Group mulls large-scale regrouping to enhance efficiency

Shenhua Group, China's largest coal producer, which has launched a series of acquisitions, is mulling larger-scale regroupings to enhance efficiency and competitiveness, according to one insider of the group.


The move was in line with efforts of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), which ordered central government owned enterprises to quicken regrouping steps this year, in order to accelerate consolidation of coal, steel and power businesses, said a source on February 9.


Shanxi state-run miners stop hiring new mining staff in 5 yrs

State-run coal producers in coal-rich Shanxi province will not recruit new mining staff in the next five years, Vice Governor Wang Yixin said at a work meeting lately.


In the next five years, the state-owned coal enterprises will instead adjust employed workers allocation to meet the demand. The move was expected to curb staff surplus, remove company burdens and bring new vitality.


Meanwhile, Shanxi will also encourage the third party labor services during the period to alleviate personnel burden, Wang said.


Shandong to cut 2.8 Mtpa steel capacity in 2017

Eastern China's Shandong plans to cut 2.8 Mtpa of crude steel production capacity in 2017, the provincial Development and Reform Commission said lately.


All the capacity will be eliminated from Jinan Iron & Steel Group, a listed arm of Shandong Iron & Steel Group. Jinan Iron & Steel will stop steel production in Jinan by end-2017.


Shandong to control raw coal output within 130 mln T in 2017

Shandong will control raw coal output in the province within 130 million tonnes in 2017, and expects production of its mines located in other provinces to exceed 120 million tonnes, said officials at a coal work meeting held on February 15.


Last year, the province produced 128.61 million tonnes of raw coal, falling 11.31% from 2015, due to the government-led capacity cut campaign, showed data from the Shandong Administration of Coal Mine Safety.


Zibo slashes 2.93 Mtpa coal capacity last yr

Zibo city in Shandong province slashed 2.93 million tonnes per annum (Mtpa) of coal capacity by closing 10 coal mines in 2016, according to officials at a work meeting held days earlier.


It completed 188% of the de-capacity target, which initially required shutdown of seven outdated coal mines, officials said.


Henan to ban burning of "San Mei" in 2017

Henan province will vigorously ban sales and burning of "San Mei" – a coal variety typically used to heat families, hotels or restaurants or to be burned by industrial boilers – by end-October this year, said local officials.


The move may alleviate air pollution, as "San Mei" is considered one main culprit for the recent smog engulfing large parts of China.


Anhui aims for 132.74 Mtpa coal capacity by 2020

Eastern China's Anhui province aims to reduce coal production capacity to 132.74 Mtpa by 2020, with 37 mines to be in operation, according to a draft plan for coal industry development over 2016-2020.


By 2020, combined coal capacity of large and super-large mines will reach 130.55 Mtpa or 98.4% of the province's total capacity. Coal output will be capped at 130 million tonnes, and 97% of the raw coal produced will be washed by 2020.


Guizhou coal production capacity at 170 Mtpa by end-2016

Southwestern China's Guizhou province had 571 coal mines by the end of 2016, with capacity of 170 million tonnes per annum (Mtpa), said the provincial Energy Administration days earlier.


Guiyang city in the province had 19 coal mines by end-2016, with capacity of 2.73 Mtpa, while Liupanshui and Zunyi cities had 128 and 64 coal mines, with capacity of 59.03 Mtpa and 15.03 Mtpa, respectively.


Jiangsu to shed 6.5 Mtpa steel capacity in 2017

Jiangsu province in eastern China planned to shed 6.5 million tonnes per annum (Mtpa) of crude steel capacity in 2017, said Zhao Zhiming, vice director of the provincial Development and Reform Commission.


The province will eliminate steelmaking capacity by 11.7 Mtpa over 2017-2018, said officials on January 17.


China's coal-related statistics

China's relevant authorities have released coal-related statistical data for September and January-September, which are as follows:


Raw coal output

Jiangsu Eastern China's Jiangsu province produced 13.46 million tonnes of raw coal in 2016, falling 29.46% year on year. In December, the province's coal output dropped 30.01% from a year ago to 1.03 million tonnes.


Shaanxi Shaanxi province produced 34.12 million tonnes of raw coal in January, dropping 6.31% from the year-ago level and plummeting 54.07% from December.


Of this, coal mines owned by the central and provincial governments produced 6.76 million and 9.69 million tonnes of raw coal in January, decreasing 7.67% and falling 11.61% from the year prior, respectively. Coal output of the mines owned by municipal and prefecture governments stood at 17.67 million tonnes, falling 2.56% year on year.


Shandong Shandong province in eastern China produced 9.7 million tonnes of raw coal in January, slumping 30.17% year on year and down 5.98% from last December. Last year, the province produced 128.61 million tonnes of raw coal, falling 11.31% from 2015, due to the government-led capacity cut campaign.


Shuozhou Shuozhou city in coal-rich Shanxi province produced 12.2 million tonnes of raw coal in December, falling 20.92% year on year but up 3.35% from November. The city's raw coal output stood at 152.87 million tonnes in 2016, dropping 16% from the year-ago level.


China Shenhua China Shenhua Energy Co., Ltd sold 33.1 million tonnes of coal in January, gaining 59.9% year on year but down 4.6% month on month. Coal sales in January was impacted by annual contract talks and weak demand, said the statement.


The company produced 25.5 million tonnes of commercial coal in January, rising 3.2% on the year and up 0.8% on the month.


China Coal Energy China Coal Energy Co., Ltd produced 6.9 million tonnes of commercial coal in January, sliding 5.7% from the preceding year but rising 4.1% from last December. Its commercial coal sales slumped 31.3% year on year and 42.3% on the month to 6.63 million tonnes in January.


Ganqimaodu coal imports Ganqimaodu border crossing in northern China's Inner Mongolia autonomous region imported 2.07 million tonnes of coal from neighboring Mongolia as of February 10 this year, up 323.42% from a year prior.


PPI China's Producer Price Index (PPI), which measures inflation at wholesale level, rose 6.9% year on year and 0.8% month on month in January.


In January, prices of coal mining and washing industry increased 1.7% from last December and 38.4% from the year-ago level; prices of oil and natural gas mining industry gained 10.4% from the previous month and 58.5% from the year prior.


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

Editors Recommendations

1 Indonesian thermal coal trades slide; miners uphold prices 2017-03-24

Chinese traders and utilities slowed buying of Indonesian thermal coal recently, but Indonesian miners were still optimistic about the future market and even planned to uphold price till May, sources

2 China thermal coal market temporarily stable 2017-03-24

China's thermal coal market was roughly stable for the time being, with bullish and bearish factors interweaving, sources said. Offer prices for 0.8% sulfur 5,500 Kcal/kg and 5,000 Kcal/k

3 Shale gas technology to reduce pollution problem in China 2017-03-24

China is banking on the shale gas technology in North America to extract methanol and clean its pollution by putting it in use for refinery chemicals, clean energy and thermal fuels, China Daily repor

4 China Coal Daily Track (Mar 24) 2017-03-24

Thermal coal Domestic marketThe ongoing safety inspection curbed the pace of production resumption at China's thermal coal mines. Coal sales remained active thanks to stable utility buyin

5 Thermal coal prices buoyant at S. China ports 2017-03-24

Robust demand kept prices of thermal coal buoyant at southern China ports, but traders seemed a bit cautious with more care on the price trend at production areas. Utilities have maintain

6 Shanxi renewable energy power output exceeds 50 TWh 2017-03-24

Shanxi's renewable energy power output has reached 53.8 TWh by end-February since its first wind power plant was put into operation in July 2008, indicating that its renewable energy development has e

7 Xinjiang new energy develops fast last yr 2017-03-24

The development of new energy sources grew faster in Northwestern China's Xinjiang Uygur autonomous region compared to other areas of the country, sources learned from the Xinjiang branch of State Gri

8 China import thermal coal prices may remain stable in Apr, sources 2017-03-23

China's imported thermal coal prices may remain stable in April, supported by increasing shipping rate and a lack of supply, market sources said. Indonesian 3,800 Kcal/kg NAR coal was off

9 Chinese utilities expect thermal coal prices to fall 2017-03-23

Most utilities in China expected thermal coal prices to decline on increasing supply and thus slowed down their buying activities, sources said. Despite sliding coal stocks, coastal utili

10 Ningxia govt may not to intervene in contract coal prices 2017-03-23

The regional government of Ningxia in northwestern China may not directly intervene in coal prices, in the wake of the local thermal power companies' request to lower price to ease their operating dif

Most Read Articles

1 China cracks down on low-quality coal imports, report 2017-03-16

China is ramping up controls on imports of low-quality coal due to concerns about smog and overcapacity in the world's top coal consumer, as traders report some cargoes have been delayed by customs ch

2 China updates coal mines capacity, calling for no beyond-capacity production 2017-03-15

China's coal mines should not produce beyond capacity, the National Energy Administration (NEA) said, while giving updates on the approved production capacity of coal mines. In a document

3 Shanxi cracks down on beyond-capacity production at coal mines 2017-03-14

The provincial government of coal-rich Shanxi issued an emergency notice on March 12, starting immediate inspection aimed at cracking down on beyond-capacity production at province-wide coal mines, lo

4 China Feb power consumption up 17.2pct on yr, NEA 2017-03-17

China consumed 448.8 TWh of electricity in February, increasing 17.2% year on year, showed data from the National Energy Administration (NEA) on March 15. Over January-February, China's t

5 China's thermal coal regains robust upward momentum 2017-03-15

China's thermal coal market has regained robust upward momentum lately, after months of declines starting from last November when China moved to boost thermal coal production to ensure supply for wint

6 China Jan-Feb raw coal output down 1.7pct on yr 2017-03-14

China's raw coal output stood at 506.78 million tonnesover January-February this year, decreasing 1.7% year on year, showed data from the National Bureau of Statistics (NBS) on March 14.

7 Glencore hires Morgan Stanley banker targeting investments 2017-03-14

Glencore has hired a senior banker from Morgan Stanley, as the mining giant looks at investments and acquisitions again after two years of belt tightening due to low commodities prices, Reuters re

8 Weekly global coal market news summary (Mar 13-Mar 17) 2017-03-17

India looks to Australian coking coal for steel and power industries As highly dependent on imports for this crucial raw material needed for steel and power generation, India has decided to tack

9 China to reduce asset-liability ratio to 60pct in steel sector 2017-03-13

China plans to reduce asset-liability ratio to below 60% in steel sector in the next three to five years, said the China Iron and Steel Association (CISA) lately. In 2016, the average ass

10 Weekly China coal market news summary (Mar 13-Mar 17) 2017-03-17

China's coal supply tightness to ease amid production resumption Supply tightness is expected to ease in China's domestic coal market, as opencast mines in Inner Mongolia's Ordos release output