China thermal coal prices continue to tick up at N. ports Price 2017-12-01 17:09:00

Spot thermal coal prices continued to move up at China's northern ports, underpinned mainly by a lack of supply resulting from tight rail wagons.

"Coal prices are climbing rapidly at northern coastal market, as spot cargoes remain in severe shortage currently," said a Hebei-based trader, adding offer prices of 5,000 Kcal/kg NAR coal rose to 605-610 yuan/t FOB.

An Inner Mongolia-based trader also reported a supply crunch at Jingtang port, bolstering offer prices for 5,000 Kcal/kg and Shaanxi 5,800 Kcal/kg NAR coals up to 610 yuan/t and 730 yuan/t FOB.

"I prefer to suspend purchases for the time being, considering the spot market remains in volatility now," he noted.

Coal stocks were less than 1 million tonnes at Coal Wharfs 36-40 of Jingtang port, according to a second trader from Hebei. And, 70% of the stocks had already been booked, leaving small amount of spot coal at the port, he added.

"Coal inflows via rail wagons are actually at normal levels, yet more coal is being shipped out of the port," he pointed out.

Offer price for Inner Mongolian 5,500 Kcal/kg NAR coal climbed above 690 yuan/t FOB, while that of 5,000 Kcal/kg NAR coal generally at 610 yuan/t or even higher at 615 yuan/t FOB for some premium material, said a second trader from Inner Mongolia.

He voiced optimism about the future market, expecting 5,500 Kcal/kg NAR coal price to exceed 700 yuan/t FOB.

Regarding the shortfall at northern ports, a central China-based trader disclosed that railways have been basically running full capacity this year, and the diesel truck ban at Bohai-rim ports since end-September brings more pressure on rail transport.

"It is also the reason for the divided price trends at production regions and coastal market now," he noted.

A Tianjin-based trader said coal prices were stable at production bases. When it came to the red-hot coastal market, he noted the uptick may last for two weeks owing to severely tight rail capacity.

"Prices are still on the decline now in Inner Mongolia, though some rises are also seen at some mines, with mine-mouth prices of 5,500 Kcal/kg NAR coal at 360-370 yuan/t," said a port-based trader.

A Shanxi-based trader reported a roughly stable market at ports along the Yangtze River, with slight pickups observed.

"Previous downturn forced many traders to cut price of 5,500 Kcal/kg NAR coal to 750 yuan/t from 800 yuan/t FOB, which attracted mane utilities to restock," he noted.

The 5,500 Kcal/kg NAR coal was offered at 770 yuan/t FOB at ports along the Yangtze River, and it could be concluded at 765 yuan/t FOB, according to the trader.

On December 1, the Fenwei CCI Thermal index for domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was assessed at 689 yuan/t FOB with 17% VAT, rising 1 yuan/t day on day and up 15 yuan/t week on week.

The Fenwei CCI Thermal index showed domestic 5,000 Kcal/kg NAR coal increased 2 yuan/t from a day ago to 610 yuan/t FOB with VAT on the same day, which was up 21 yuan/t from the week-ago level.  

(Writing by Jessie Jia   Editing by Harry Huo)
For any questions, please contact us by or +86-351-7219322.

Editors Recommendations

1 China's steel prices expected to rebound amid output curbs stretch 2018-03-20

China's steel prices are expected to bounce back in the short run, as some regions have extended output curbs and demand for the material may rebound. Major steel cities including Handan

2 China's raw coal output up in 2017, first pickup since 2014 2018-03-20

China's raw coal output picked up to 3.52 billion tonnes in 2017, a 3.3% increase from a year ago, rising for the first time since 2014, thanks to robust demand and high-quality capacity building an

3 Weekly China met. coke market analysis and forecast 2018-03-20

Coke prices went down by 50 yuan/t in most parts of eastern China's Shandong, some areas in Hebei and other regions last week. For most market players, the price drop seemed out of expectation but w

4 China's steel price drop show signs of slowdown but still under pressure 2018-03-19

China's spot steel products market posted a slowdown in price drops last week, but was still under pressure as steel stocks remained high in the consuming side. As the previ

5 China's longest on-building coal special railway starts rail laying 2018-03-19

Starting from coal-rich Inner Mongolia in the north and ending in southern consuming area Jiangxi, China's longest on-building coal-dedicated railway started rail laying on March 17, marking the part

6 Weekly China coal market news summary (Mar12 - Mar 16) 2018-03-19

China overcapacity campaign faces its toughest challenge this year China's effort to cut overcapacity in steel and coal is expected to face its most difficult challenge this year, although th

7 Weekly global coal market news summary (Mar12 - Mar 16) 2018-03-19

India to raise coal supply to power plants by railways As power plants face coal shortages, Coal Minister Piyush Goyal has asked Railways to increase coal loading to up to 500 rakes per day

8 China Shenhua Feb commercial coal output down 10.4% YoY 2018-03-19

China Shenhua Energy Co., Ltd, the listed arm of newly-merged China Energy Investment Corporation, produced 22.4 million tonnes of commercial coal in February, dropping 10.4% year on year and 8.9% fro

9 Kazakhstan Jan coal output down 4.9% on yr 2018-03-16

Kazakhstan saw its coal production total 9.73 million tonnes in January, down 4.9% on the year and 7.7% on the month, showed data from the country's Committee of Statistics under the Ministry of Nat

10 The US Jan coal output down 7.7% on yr 2018-03-16

The US produced 63.11 million short tons (57.25 million tonnes) of coal in January, down 7.7% or 5.27 million short tons from a year ago yet up 0.95% from a month ago, showed data from Energy Inform

Most Read Articles

1 China overcapacity campaign faces its toughest challenge this year 2018-03-12

China's effort to cut overcapacity in steel and coal is expected to face its most difficult challenge this year, although the target may look small compared with the previous two years, analysts said.

2 China's coal capital to add 5.55 Mtpa coal capacity in 2018 2018-03-12

Six coal mines with combined production capacity of 5.55 Mtpa will go into operation in Taiyuan, capital city of coal-rich Shanxi province, this year, said the municipal government. This

3 Indian state ports' Feb coal imports down 18.45pct MoM 2018-03-12

India's 12 major government-owned ports imported 12.39 million tonnes of coal in February, down 18.45% from January but up 5.18% year on year, according to latest data released by the India Ports As

4 Indonesia to lose $630 mln in revenue from coal price cap 2018-03-15

Indonesia's decision to impose a price cap on domestic coal prices will lower state revenue by up to 9 trillion rupiah ($630 million) this year, a senior finance ministry official said on March 13.

5 India's coal-fired power generation growth declines in Apr-Feb 2018-03-16

Coal-fired power generation has registered a 4.37% growth during the April-February fiscal 2017-18, compared with 5.47% in the previous corresponding period. Analysts, however, are predicting an incre

6 What does Trump's 25% tariff mean to China's steel exports? 2018-03-14

On March 24, the US will impose 25% tariff on steel imports and 10% on aluminum, following President Donald Trump singed the order on March 9 (GMT +8). The tariff policy has put the globa

7 China steel exports may fall further in 2018: top executive 2018-03-12

Chinese exports of steel products may continue to fall this year due to strong domestic demand and reductions in capacity due to environmental commitments, the chairman of state-owned mill Fujian Sang

8 Yancoal to produce 70 Mt of raw coal in 2018 2018-03-14

China's Yancoal Australia Ltd, the largest pure-coal producer in Australia, is expected to produce at least 70 million tonnes of raw coal in 2018, according to Xinhua. The annual raw prod

9 Indonesian steps up for Rio Tinto coal, bids ready 2018-03-14

Indonesian coal giant Adaro Energy is a latecomer to the auction for Rio Tinto's $2.5 billion-plus Queensland coal portfolio. It is understood that Adaro will bid for the whole portfolio

10 Teck Resources cuts sales volume forecast for steelmaking coal 2018-03-12

Canadian miner Teck Resources Ltd on March 9 cut its current-quarter forecast for steelmaking coal sales volumes. Teck said it now expects sales volumes of steelmaking coal to be about 6