Key mines at Changzhi, Shanxi province lowered PCI prices by 70-100 yuan/t, after which Sima mine's washed rail coal prices stood at 1,230 yuan/t; while other local coal mines reduced PCI coal prices by 80 yuan/t, making a total 130 yuan/t cut since late October to 930 yuan/t.
Mixed coal prices in Zhangcun mine dropped by 70 yuan/t and decreased by 60 yuan/t in other coal mines.
Key mines at Changzhi and its vicinity areas had high PCI stocks and faced downstream users' price cut request.
Moreover, affected by pessimistic sentiment, key mines had difficulties selling PCI coals.
A large number of washing plants halted production amid environmental inspection and their outbound shipments bore pressure.
Steel enterprises were reluctant to purchase PCI coals and consumed stocks. Owing to the environmental campaign to halve production, most of them wished that PCI coal prices could fall down further. PCI storage in steel mills was enough for 13 days of use.
Coke prices edged down by 100 yuan/t last week and pessimistic sentiment in the market remained unchanged.
The PCI coal market may further go downward in the short run amid steel mills' slack demand caused by the implementation of production curb.
As of November 10, the Fenwei CCI Met index assessed Changzhi PCI coal with 11.5% ash, 12% VM and 0.5% sulphur at 1,030 yuan/t, free-on-rail basis, VAT-included, unchanged from last week.
On the same day, Fenwei assessed Jincheng PCI coal with 11% ash, 10% VM and 0.5% sulphur at 990 yuan/t, free-on-rail basis, VAT-included, down 20 yuan/t from the week prior.
Yangquan PCI coal with 11.5% ash, 10% VM and 0.8% sulphur was assessed at 980 yuan/t, free-on-rail basis, VAT-included, stable from the previous week.
(Writing by William Gao Editing by Jessie Jia)
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