N. China ports coal prices drop fast on weak demand and rising supply

sxcoal.com Price,  Thermal Coal 2017-11-01 17:03:00

Spot prices of thermal coal traded at northern China's Bohai-rim ports dropped notably in recent days, due to a lack of buying interest from utilities and growing supply as more mines are resuming at production areas.  

Panic selling by some traders also helped driving down prices, reinforcing bearish sentiment toward the near future market.

"Purchases remained sparse at northern ports," said a trader at Caofeidian port. "Most utilities were just waiting for new monthly pricing of the nation's top coal producers.

Shanxi 5,500 Kcal/kg NAR coal with 0.8% sulfur, though offered at 715 yuan/t FOB, was also tradable at about 710 yuan/t FOB, he said. "Prices are likely to further fall back slowly in the short run."

A trader at Qinhuangdao port also confirmed the disparity between demand and supply. "Low buying interest caused by reduced coal burn at power plants was a major factor behind the rapid price slump recently, though bearish sentiment also played a part," he said.

Shanxi 5,500 Kcal/kg NAR coal with 0.8% sulfur was offered at 715 yuan/t FOB, while Inner Mongolia same-CV fuel was offered at 710 yuan/t FOB, compared with bids of 700-710 yuan/t FOB, according to the trader.

"Some utilities made inquiries for Shanxi 5,000 Kcal/kg NAR coal at 610 yuan/t, lower than offer prices ranging 615-620 yuan/t FOB," said the trader.

Despite the tightened supply caused by Daqin railway overhaul, spot coal prices will continue to go down in the short run before stabilizing in mid or late-November, he remarked.

Utilities got more inactive in a downside market, pointed out a Hebei-based trader, not mention the great contraction in their coal burns.

Coal prices have also declined 10-15 yuan/t at major production areas, coastal market prices may further move downward in the near future, he added.

A trader said he sold Inner Mongolian 5,500 Kcal/kg NAR coal at 690-700 yuan/t FOB, and 5,000 Kcal/kg NAR coal at 610 yuan/t at Qinhuangdao port, compared with 615 yuan/t FOB for the same-CV material traded at Jingtang port.

A Tianjin-based trader predicted prices of 5,500 Kcal/kg NAR coal traded at northern ports may soon fall below 700 yuan/t FOB, as offer price of 715 yuan/t FOB was barely accepted by buyers now.

Offer price for Shanxi 5,500 Kcal/kg NAR coal was 710 yuan/t FOB, while that for some Inner Mongolian same-CV cargoes was 700 yuan/t FOB, according to a coal mine source.

On November 1, the Fenwei CCI index for domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was assessed at 705 yuan/t FOB with 17% VAT, falling 3 yuan/t day on day.

On the same day, the Fenwei CCI index for domestic 5,000 Kcal/kg NAR coal traded at Qinhuangdao port was assessed at 606 yuan/t, FOB basis with 17% VAT, down 4 yuan/t from a day ago and down 22 yuan/t week on week.

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

Share this article
Connect with us

Editors Recommendations

1 Australian miner New Hope says coal prices to push higher 2018-09-18

Australian miner New Hope Corp on September 18 said thermal coal prices would push higher in coming months, extending a rise that helped boost its profits in the last financial year. The

2 Dozens of miners raised coal prices by 5-15 yuan/t in Shaanxi's Yulin 2018-09-18

Dozens of miners were synchronously raising coal prices in Yulin city since September 16, northwestern China's Shaanxi province, backed by robust pre-winter restocking in Northeastern China.

3 Guangdong ports halt coal operation during typhoon hit 2018-09-18

Ports in all major areas of Southern China's Guangdong have also been temporarily suspended during the super typhoon "Mangkhut" arrival. The No. 22 typhoon of this year made landfall on t

4 China Coal Daily Track (Sep 18) 2018-09-18

Thermal coal Domestic market Thermal coal prices edged down 10-20 yuan/t in Yuyang district of Yulin city, Shaanxi province, due to fewer trucks coming to mines for loading; prices wer

5 China Coal Energy Aug PE output inches up but sales down 2018-09-18

China Coal Energy Co., Ltd., one listed arm of China National Coal Group, produced 67,000 tonnes of polyethylene (PE) in August, up 6.3% year on year, said the company in a statement on September 14.

6 China Coal Energy Aug coal output edges up on yr to 6.54 Mt 2018-09-18

China Coal Energy Co., Ltd., one listed subsidiary of China National Coal Group, produced 6.54 million tonnes of coal in August, edging up 0.8% from a year ago, said the company in a report on S

7 Indonesian coal price remains steady, trades sparse 2018-09-18

Indonesian thermal coal prices held steady at the beginning of this week, with offers of low-CV coals to Chinese buyers almost unchanged from late last week. The market looked quite lukew

8 QHD coal stocks rise amid restrictions on outbound shipment 2018-09-18

Coal stocks at China's leading transfer port of Qinhuangdao edged higher, as outbound shipment has been limited by local government authorities for environmental purpose, traders said. Da

9 Weekly China met. coke market analysis and forecast 2018-09-18

With some coke producers starting to accept the drop of purchase price for metallurgical coke proposed by steel mills in Hebei and Shandong last week, the feast for Chinese coke market came to an en

10 Weekly China thermal coal market analysis and forecast 2018-09-18

Spot prices of thermal coal were generally on a gentle upward track at northern China ports in the week ending September 17, supported by resilient purchase by some industrial plants and higher delive

Most Read Articles

1 High cost props up coal prices at N Chinese ports 2018-09-11

Chinese thermal coal market gained strength at the beginning of this week from stiff prices at production areas, which, plus transport fees, pushed coal prices up at northern ports. The m

2 China import thermal coal prices steadily rise to track domestic upturn 2018-09-10

Prices of import thermal coal offered to Chinese buyers continued to inch up late last week, aligning with recent upturns in China's domestic market. The uptick seen in Indonesian coal wa

3 China import thermal coal market still lacks upbeat momentum 2018-09-11

Not many deals were concluded for import thermal coal at the beginning of this week, said market sources in China, on a lack of support from the demand side. "Recent import market just sh

4 Chinese thermal coal stays range-bound; demand bounces back 2018-09-10

Chinese spot thermal coal market has moved in a narrowed range for nearly two weeks, with both sellers and buyers keeping the price wrestling but failing to tip the balance. By September

5 Rising demand paints a rosy picture for China's thermal coal market 2018-09-11

Coal miners in main-producing areas of China are optimistic about thermal coal market in the future, as demand continues to increase. Currently, lump coal prices kept climbing up in Ordos

6 More Mongolian coking coals flow into China, helping ease supply tightness 2018-09-12

Tightness of coking coal supply in China, caused mainly by strengthened environment-related production restrictions, is expected to get eased moderately with increased arrivals of Mongolian coal follo

7 China's Aug coal imports rise 13.49% on yr 2018-09-10

China's coal imports climbed by 13.49% from a year earlier to 28.68 million tonnes in August, showed data from the General Administration of Customs (GAC) on September 8. The impo

8 China Aug coal exports skyrocket 710% on yr 2018-09-10

China's coal exports reached 486,000 tonnes in August, surging 710% on the year and 14.35% on the month, showed data released by the General Administration of Customs on September 8.

9 China mulls flexible output curbs in heavy industries this winter, sources 2018-09-13

China is considering allowing its northern provinces to decide individual output cuts by heavy industries including steel to rein in emissions during the winter, sources said. This

10 Weekly China met. coke market analysis and forecast 2018-09-11

The sixth price hike of 100 yuan/t proposed by leading coke producers in Hebei, Shanxi and Shandong has been accepted by many steel mills in Hebei and Shandong, taking the total increase to 600-650