China thermal coal market keeps strong momentum on robust demand

2018-01-11 14:28:00 Viewpoint,  Price,  Thermal Coal sxcoal.com

Thermal coal prices keep the strong momentum in China's spot market, backed by high consumption in the coal-fired power sector.


On January 9, Fenwei CCI spot index for the 5,500 Kcal/kg NAR thermal coal was assessed at 725 yuan/t FOB, rising for 50 consecutive days from 670 yuan/t FOB on November 21.


Coal-fired power plants had to generate more power during this winter heating season. Households had to keep warm by consuming much electricity in southern China and some northern regions where coal-to-gas facilities haven't yet to be completed, especially after blizzards hit most northern provinces and rainfalls hit the south in the first week of January.


Over January 1-10, combined daily coal consumption averaged 737,000 tonnes at the six major coastal utilities, a little lower than 753,000 tonnes over December 21-31 but 66,000 tonnes more than a month ago.


Combined coal stocks of the six utilities, 10.57 million tonnes as of January 10, can only support consumption of less than 15 days. In fact, their stocks have stayed below levels for 15 days of use after December 15-16 days of use.


Besides the large consumption, tight supply from domestic regions was also a reason behind low coal stocks at power plants.


A trader at Qinhuangdao port said domestic coal supply remained tight at northern ports. "The newly-bought rail wagons to run in Daqin line are still not in full position now," he noted. "Truck transport was heavily blocked by wide-spread snowfalls in the first days of the month."


Over the first ten days of January, daily coal rail inflow and outflow averaged 599,800 and 566,300 tonnes, far lower than 612,100 and 619,000 tonnes a month ago.


Some miners in Inner Mongolia complained large amounts of coal were piled up at warehouse as no trucks came recently. "Snow is quickly removed on freeways, but for provincial highways and small road to mines, you can only pin your hope on the sun," one said.



For import thermal coal, insiders believed the recent lift of coal import restrictions at ports may have little impact on seaborne import market in the month. "But in February, the impact will emerge along with large coal inflows from overseas markets and low consumption in plants and factories," one said.


The Chinese New Year holiday lasts from February 15-21, the most important holiday for people within Chinese culture.


(Writing by Alex Guo   Editing by Tammy Yang)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Editors Recommendations

1 Shanxi 1st HDR geothermal heating program makes sound success 2018-01-16

The first hot dry rock (HDR) geothermal heating program has made sound success in capital city Taiyuan of coal-rich Shanxi province, China's state media reported on January 16. "Compared

2 China's Guizhou to phase out 300-MW-below coal-fired power units in 2018 2018-01-16

Southwestern China's Guizhou province plans to eliminate all coal-fired power generation units with capacity below 300 MW in 2018, to leave capacity room for clean thermal ones, said the provincial en

3 China imported a record amount of iron ore in 2017 2018-01-16

Hunger for high-quality iron ore from Australia and Brazil pushed Chinese imports of the steelmaking ingredient to a record high in 2017. While shipments were down 11% in December, the fu

4 China thermal coal price likely to cool down before Chinese New Year 2018-01-16

China's red-hot domestic thermal coal market is likely to cool down before China's traditional Lunar New Year, as demand may gradually come down before and during the festival, a similar pattern to th

5 Weekly China met. coke market analysis and forecast 2018-01-16

Coke prices continued to move downward last week in China's major production regions. Most coking plants ran at higher operating rates in Jiangsu, Shandong and Shanxi after eased environmental super

6 China Coal Daily Track (Jan 15) 2018-01-15

Thermal coal Domestic market Coal sales go better at main production regions. In Shenmu and Fugu, Yulin city of Shaanxi province, slack coal sells good with prices adjusted up at some

7 Taiwan Dec coal imports up 5.88% YoY 2018-01-15

Taiwan imported 5.29 million tonnes of coal in December, up 5.88% year on year and 10.57% from November, showed preliminary data from Taiwan Customs. In December, Taiwan imported 5.2 mill

8 China's top coal miners announce price cuts to cool rally 2018-01-15

Chinese energy conglomerate China Energy Investment Group (CHNENERGY) among other top coal producers have joined the latest move to adjust down spot power coal prices, in response to the government's

9 Fenwei CCI 5500 Composite index slides as large coal miners cut prices to curb rally 2018-01-15

The Fenwei CCI 5500 Composite index, which reflects price movements of both contract and spot thermal coal in China, dropped for the first time since late November, following price cuts announced by t

10 China met coke prices still on the downside as inventory pressure builds up 2018-01-15

Prices of metallurgical coke, used in steel production, further dropped in main regions of China, as coke stocks gradually increased at coking plants and steel mills. One major st

Most Read Articles

1 Indonesian coal prices move higher on active Chinese tenders 2018-01-08

Indonesian coal prices climbed higher on the back of intensive tenders from Chinese utilities, with Supramax 3,800 Kcal/kg NAR cargoes being offered at $49/t FOB, trade sources said. One

2 Five more Shanxi-based miners cut thermal coal prices 2018-01-11

Five more state-owned large coal miners in northern China's Shanxi province announced price cuts of 15-20 yuan/t, in an effort to rein in too fast growth in prices of the power generation fuel in the

3 Indonesia's Jan HBA thermal coal price up 10.8% YoY to $95.54/t 2018-01-08

Indonesia's Ministry of Energy and Mineral Resources set its January thermal coal reference price, also known as Harga Batubara Acuan or HBA, at $95.54/t, up 10.8% year on year.

4 China issues stricter rules on building new steel capacity, industry ministry 2018-01-08

China has issued stricter rules on building new steel production capacity to replace obsolete facilities, the Ministry of Industry and Information Technology said on January 8. C

5 China authority prioritizes coal and gas shipment 2018-01-09

China's Ministry of Transport will prioritize transport of coal and natural gas this winter to avert energy crisis in peak demand heating season, state-owned media reported. Ports and mar

6 China Dec coal imports up 3.13% on mth 2018-01-12

China imported 22.74 million tonnes of coal in December, down 15.28% from a year ago but up 3.13% from November, showed data from the General Administration of Customs on January 12. That

7 China's NEA set to hold conference on coal import policies 2018-01-08

China's National Energy Administration is set to hold a meeting early January 9 with major power generators on influences of easing coal import restrictions, as well as issues on coal supply from dome

8 Coal stocks ramp up at Guangzhou port, possibly related to import curb lift 2018-01-10

Coal stocks have been jumping up at southern China Guangzhou port recently, following the country relaxed coal import limits late last month. China's top economic body Nati

9 China's Govt releases policy to ensure zero growth of capacity in major industries 2018-01-09

The government has released new policy to ensure zero growth of production capacity in steel, cement and plate glass industries and to continue capacity replacement measures this year, Economic Inf

10 Yangquan Coal cuts thermal coal prices at N. China ports 2018-01-11

China's leading coal miner Yangquan Coal Industry Group lowered FOB prices of thermal coal at northern ports by 15 yuan/t effective January 10, its sales company said in a statement on the same day.