Coal prices remained stable on the whole in northern China's Henan province, except Henan Energy and Chemical Industry Group that announced to cut coal prices by 10 yuan/t on October 1.
Zhengzhou Coal Industry Group and Shenhuo Group kept their coal prices unchanged despite downward trend observed in other major production bases in China.
"We have noticed the downtrend in the recent coal market but we haven't received relevant notification yet, so our thermal coal prices are kept at 600 yuan/t or so," said Chen Xiaoyan, chairman secretary of Zhengzhou Coal Industry Group .
At the meantime, the chairman secretary of Shenhuo Group said, "our group, mainly selling coking coal, maintain our leading products at 1100 yuan/t and high-end products at 1300 yuan/t, though coking coal prices dropped at some certain regions.."
An anonymous senior executive from one coal company in Henan considered this price- cutting trend as "more symbolic than practical effect".
"Coal demand is expected to pick up amid the coming winter heating season, which could be supportive to coal prices in the short term," said the source.
Meanwhile, with intensified safety inspection at coal mines and control on initiating explosive devices, coal mining will be restricted and coal output slips," he mentioned. "It should also be noted that coal demand is declining given production curbs in steel and some certain industries, and as a consequence, coal price may remain in a reasonable scale."
In fact, coal price stayed high this year, which supported most coal companies to has finished profit turnaround from losses.
For instance, Zhengzhou Coal and Electric Co., Ltd realized 0.4 billion yuan ($62 million) of net profit for the first six months of 2017; likewise, Dayou Energy Group gained 0.3 billion yuan of net profit during the same period; their net profit from third quarter of 2017 might also be expanding as well.
(Writing by William Gao Editing by Tammy Yang)
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