China's coking coal market remained tepid recently amid weakened demand from coking and steel industries, which were both ordered to cut production in a bid to improve air quality in the typical high-polluted winter.
Large coal mines in Shanxi province were expected to hold the prices steady in this month with not much sales pressure in general as they had basically fulfilled their annual sales targets for 2017. Small miners, however, were still anxious of the sparse demand, especially when seeing some coals overstocked and unsalable.
A coal miner in Handan, Hebei also reduced mine-mouth offer prices for local market, with price of coking coal down 60 yuan/t and that of lean coal down 50 yuan/t.
In addition, the mine provided volume-based discounts to boost coking coal sales. "We give a 10 yuan discount for every purchase of 10,000 tonnes to a ceiling of 30,000 tonnes," he said. "Counting the discounts in, we cut our prices by 90 yuan/t."
A coal miner in Shanxi said they lowered 20 yuan/t for their primary coking coal with 0.7% sulfur, 10% ash and GRI 80 to 1,430 yuan/t, mine-mouth basis with VAT.
"We were yet to cut production for now as our stocks are not that large after we sold a good few of them prior to the national congress," he said. "But for later this month, I don't know."
(Writing by Alex Guo Editing by Tammy Yang)
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