China coking coal market further declines amid downstream output curbs

sxcoal.com Price,  Production & Sales,  Coking Coal 2017-11-03 15:30:00

Prices of coking coal, one key ingredient for steel production, further decreased in China's major production areas, as miners tried to boost sales amid weak buying from coke and steel plants that have curtailed output under stricter environmental policies.


One large Shandong-based miner adjusted down coking coal prices by 50 yuan/t on November 1, partly in response to downstream buyers' price cut appeals. It also offered larger discounts for those purchase more.


While no price cuts have been announced by other miners, industry insiders expected prices to further decline, as steel mills and coke plants have been restricting output under tougher environmental protection measures.


The Chinese government has ordered coke firms and steel mills to cut production in a move to tackle hazardous smog during the winter heating season.


One producer source in Feicheng, also in Shandong province, said that they wanted to uphold coking coal prices for a while, despite high inventory pressures and tepid demand. "We plan to cut prices when coking plants consume most of their stocks," he said.


The source put the ex-washplant price of coking coal with 0.8% sulfur, 8.5% ash, 38.5 VM and 80-85 GRI to 1,210 yuan/t, on bank's draft with VAT.


Demand for washed coal has been limited in Shanxi, the nation's top producer of the material, as coke firms were ordered to slash production as air quality worsened with the start of winter heating.


In Linfen, one major coking coal production area in Shanxi, some coke firms have halted production on November 1, local sources told sxcoal.com.


One Puxian-based miner source said their mine has just resumed production after passing check of local safety watchdog, without much output or new orders.  


"The price of primary coking coal has dropped sharply, so will 1/3 coking coal," the source said. The price of washed coking coal with 0.9% sulfur, 10.5% ash, 38% VM and GRI 85-98 was 1,420 yuan/t, ex-washplant with VAT. 


One Changzhi-based mine source, who held a wait-and-see attitude toward the market, said they haven't cut coking coal prices as their stocks are not so high, although some local mines did cut prices.


(Writing by Zoey Yan  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 Could cold snap prop up China thermal coal prices? 2018-12-10

A new wave of cold snap gripping most areas in China may partly bolster thermal coal market at a time when the January-November imports of the power-generating ingredient surpassed the total import in

2 Coal trades lack strength at N China ports, yet bullish sentiment simmering 2018-12-10

Thermal coal trades remained thin at northern Chinese ports last week, partly as prices have been falling close to traders' breakeven point, but most of them expected the market to improve later.

3 China's import thermal coal trades stagnate amid wait-and-see mood 2018-12-10

China's import thermal coal trades remained stagnant amid strong wait-and-see sentiment among both end users and traders. The latest coal import seminar convened by Chinese authorities also failed to

4 China Coal Daily Track (Dec 10) 2018-12-10

Thermal coal Domestic market Production area In Shaanxi, coal prices were in temporary stabilization but some miners reported sale pressures. In Ordos, Inner Mong

5 Tangshan port Jan-Nov cargo handling exceeds 570 Mt 2018-12-10

Tangshan port, located in southeastern coastal region of Tangshan city of Hebei province, registered total cargo handling of 572.32 million tonnes over January-November this year, up by 8.86% from a y

6 China PPI rises 2.7% in Nov 2018-12-10

China's producer price index (PPI), which measures costs for goods at the factory gate, rose 2.7% year on year in November, the National Bureau of Statistics (NBS) said on December 9. The

7 Weekly global coal market news summary (Dec 3- Dec 7) 2018-12-07

Indonesia's Dec HBA thermal coal price dips for 4th mth to $92.51/t Indonesia's Ministry of Energy and Mineral Resources has set its December thermal coal reference price, also known as Harga

8 Cold front hitting China's south & east – but coal traders may love it 2018-12-07

A strong cold front not only brings the first snowfall of this year to some northern cities, it also causes sharp temperature drop in the south. The National Meteorological

9 Shanghai steel rebar futures set for best week in 5 mths on glut concerns 2018-12-07

China's steel rebar dropped nearly 2% on December 7, but is poised for its best week in nearly five months, reflecting persistent concerns over surplus supply amid high utilisation rates at steel mill

10 Chinese coal importers avoid taking position amid policy uncertainty 2018-12-07

Chinese thermal coal traders are shy of taking positions in the seaborne import market, as the country's import policy remains up in the air. Considering the policy risk, one Beijing-base

Most Read Articles

1 Cold front hitting China's south & east – but coal traders may love it 2018-12-07

A strong cold front not only brings the first snowfall of this year to some northern cities, it also causes sharp temperature drop in the south. The National Meteorological

2 China coking coal rallies to 15-month high amid tighter supply 2018-12-07

Chinese coking coal futures jumped to their highest in nearly 15 months on December 7, supported by tighter supply amid safety checks at coal mines, while coke surged nearly 6% to a five-week high.

3 Weekly global coal market news summary (Dec 3- Dec 7) 2018-12-07

Indonesia's Dec HBA thermal coal price dips for 4th mth to $92.51/t Indonesia's Ministry of Energy and Mineral Resources has set its December thermal coal reference price, also known as Harga

4 Tangshan grapples with emissions discharged by steel mills 2018-12-07

Sintering machines and pelletizing devices equipped in steel mills in Tangshan city in northern China's Hebei province will be asked to suspend production for rectification till December 31, if they f

5 Shanghai steel rebar futures set for best week in 5 mths on glut concerns 2018-12-07

China's steel rebar dropped nearly 2% on December 7, but is poised for its best week in nearly five months, reflecting persistent concerns over surplus supply amid high utilisation rates at steel mill

6 Shanxi approves trial run of 6 coal mines with 16.4 Mtpa capacity 2018-12-07

Shanxi Energy Administration has approved 2 mines' requests of expanding previous planed trail run period and 4's proposals of starting trail run since November. The 6 coal mines with combined designe

7 A review of 1st Coking Coal Market Analysis & Blending Technology Application Summit 2018-12-03

The 1st Coking Coal Market Analysis & Blending Technology Application Summit co-hosted by Shandong Coking Industry Association and Fenwei Energy Information Services Co., Ltd. wrapped up successfu

8 China Coke Market Analysis and Forecast (Dec 2018) 2018-12-06

Despite strong support from coking coal prices, China's metallurgical coke market was badly hammered in November by steel price nosedive. In November, the market has experienced

9 China Nov coal import extends decline for 4th mth; down 17% on mth 2018-12-08

China imported 19.15 million tonnes of coal in November this year, down 17% from the previous month, showed the latest data released by the General Administration of Customs on December 8.

10 China spot thermal coal market may trend down further 2018-12-04

China's spot thermal coal market is forecast to further trend down in the high demand winter season, but the downside space could be limited, as downstream utilities have low demand for spot coal afte