Thermal coal supply remains short at N. China ports; shipment delays Price,  Thermal Coal 2018-01-02 17:09:00

Supply of spot thermal coal was still in tightness at northern China ports, causing loading delays and buoying prices of the power generation material.

Low availability of spot coal at northern ports was partly due to tight rail capacity, said a Hebei-based trader. Offer prices were heard at 710 yuan/t and 640-645 yuan/t FOB with VAT for 5,500 Kcal/kg and 5,000 Kcal/kg NAR coal, he noted.

One Inner Mongolia-based trader confirmed shortness of rail wagons and said it may not be eased soon. He added the future market would largely depend on the extent of utility restocking.

Prevailing offer prices for 5,500 Kcal/kg NAR coal ranged from 710 yuan/t to 715 yuan/t FOB with VAT, he added.

Limited rail wagons were allocated to deliver coal from mines to Qinhuangdao port these days, said a Liaoning-based trader, noting half of anchoring vessels were waiting to load coal produced by the country's second largest coal miner – China National Coal Group.

"Impacted by wagon shortage, we just delivered two-train coal to Caofeidian last month, and now stocks are less than 2 million tonnes at the port," said a Shanxi-based trader. He assumed domestic prices may extend uptrend into mid-January, before a possible retreat resulting from concentrated import coal arrivals.

Trade price for 0.3% sulfur Shaanxi 5,500 Kcal/kg NAR coal, previously heard at 708 yuan/t, has climbed above 711 yuan/t, yet no spot material was available, he added.

Currently traders had few spot coal for sale at Caofeidian port, said a Tianjin-based trader, highlighting tightness of supply in the spot market.

Market players expected more rail wagons to be allocated this month to boost supply to northern ports, the trader said.

"Utilities still suffer low coal stocks and may continue to replenish stocks, so spot prices will remain firm in January," he pointed out.

One Jiangxi-based trader said he hasn't bought any spot coal but took some term contract material. "Coal handling is heavily disrupted at Bohai-rim ports; it seems weird utilities don't rush to grab spot cargoes, maybe awaiting term contract or import coal."

"As we settle accounts at the year end, we have done little trades," said another Inner Mongolia-based trader. Many utilities were waiting for coal loadings at northern ports, which may send price higher from current 710 yuan/t for 5,500 Kcal/kg NAR material.

"In March, most traders could embrace some turnaround, before that the market may not be very upbeat, said another Tianjin-based trader.

The trader, who offered single-mine Shanxi 0.8% sulfur 5,500 Kcal/kg and 5,000 Kcal/kg NAR coal at 710 yuan/t and 639 yuan/t, noted increased buying interest in 5,000 Kcal/kg and 4,200 Kcal/kg NAR coals.

On January 2, the Fenwei CCI Thermal index for domestic 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was assessed at 709 yuan/t FOB with 17% VAT, rising 1 yuan/t day on day and up 4 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 638 yuan/t FOB with VAT on the same day, which was up 6 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.

Share this article
Connect with us

Editors Recommendations

1 Weekly China coal market news summary (Jun 11 – Jun 15) 2018-06-15

China to launch broader environmental inspections this month China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next yea

2 China May coal imports dip 1.28% YoY from Newcastle terminals 2018-06-15

China imported 985,600 tonnes of coal from Australian Newcastle terminals (Carrington and Kooragang) in May, dipping 1.28% from a year ago and slumping 34.09% from a month before, showed data from the

3 China Coal Daily Track (Jun 15) 2018-06-15

Thermal coal Domestic market Thermal coal prices edged up in Shaanxi amid low stocks and robust sales. Prices continued climbing in Ordos of Inner Mongolia thanks to limited output at

4 China's coal import policy remains unclear, foreign prices stay firm 2018-06-15

China is yet to reveal any official statement on relaxing coal import curbs at coastal ports, although some sources said restrictions had already been eased at some ports, traders said. A

5 China's spot thermal coal offers weaken on slid purchase 2018-06-15

Offer prices of spot thermal coal fell back at northern China ports, frustrated mainly by decreased buying appetite from power plants amid strong wait-and-see sentiment. "Prices dropped q

6 China Shenhua May polythene sales surge 57.5pct YoY 2018-06-15

China Shenhua Energy Co., Ltd, one world-class coal-based integrated energy company, sold 32,600 tonnes of polythene (PE) in May, an 57.5% increase on the year, said the company in a statement late Ju

7 China Shenhua May commercial coal output 2.5% YoY 2018-06-15

China Shenhua Energy Co., Ltd, a listed arm of China Energy Investment Corporation, produced 24.7 million tonnes of commercial coal in May, edging up 2.5% year on year and 2.92% month on month, the co

8 China's Tianjin set to switch vehicle fuel to ethanol gasoline from Oct 2018-06-15

Northern China's metropolis Tianjin is set to introduce ethanol gasoline to replace the regular one and complete the entire switch before October, said the municipal governmental in a plan on June

9 Asian coal, gas markets roar into top gear 2018-06-15

Thermal coal and gas prices have coursed into a bull run, propelled by particularly strong demand across Asia, where electricity consumption is surging thanks to healthy economic growth just as season

10 China steel output jumps to record despite smog campaign 2018-06-14

China's steel output surged to a record in May as mills ramped up production to chase fat profit margins, with a strong outlook for demand likely to keep mills running at nearly full capacity for the

Most Read Articles

1 China to launch broader environmental inspections this month 2018-06-11

China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next year, the Ministry of Ecology and Environment (MEE) said in a statement on

2 China's major coal miners vow to ensure supply and stabilize prices 2018-06-12

While CHN Energy announced late last week to lower their June contract coal price within the "yellow range" below 600 yuan/t, more major miners have promised to lower prices to ensure adequate supply

3 Major Chinese miners work to stabilize thermal coal prices 2018-06-11

Some leading miners in China made price adjustments in response to government's call for stabilizing thermal coal price and supply, sources said. China Energy Investment Cor

4 CHN Energy reduces contract coal prices within 600 yuan/t, sources 2018-06-11

China Energy Investment Group, also known as CHN Energy, announced to control its monthly contract prices of thermal coal, media reported late June 8, in a way to cool down the overheated coal market.

5 China's steel mills utilisation rate falls for 3rd week on environmental checks 2018-06-12

Utilisation rate at steel blast furnaces across China fell for a third consecutive week last week as of June 8, data showed, as environmental inspections continued to weigh on operation at steel mills

6 Weekly China met. coke market analysis and forecast 2018-06-12

Coke producers in China's main production areas of Shanxi, Shandong and Hebei adjusted up their selling prices again by 100 yuan/t from June 8, the first rise this month and the seventh in a row si

7 Plan to merge pipeline assets of three energy giants on track in China 2018-06-13

China is pushing ahead with a plan to combine oil and gas pipeline assets of three State-owned energy giants into a new company, Bloomberg reported. The specific reform plan is

8 China proceeds development of coal-to-oil conversion 2018-06-15

China is developing new energy sources by converting coal into diesel. The world's first coal to diesel conversion production line, in China's Inner Mongolia autonomous region, produced 8

9 China's 20 large steel makers launch maintenance to improve environment 2018-06-14

A total 20 Chinese large steel makers have launched maintenances since June 11, said the Ministry of Ecology and Environment days earlier, in a move to strengthen environmental inspections at key poll

10 China's raw coal output rises to a new high in May 2018-06-14

China's raw coal production registered a new high in May since this year, according to official data, as miners churned out the material driven mainly by tempting profit and rallying prices.