Follow up: Datong Coal and Yitai cut coal prices by 15 yuan/t Company,  Price,  Thermal Coal 2018-01-12 09:49:00

Datong Coal Mine Group, one leading thermal coal producer in northern Shanxi, and privately-owned Inner Mongolia Yitai Coal Group have also lowered prices of power generation coal by 15 yuan/t, effective January 11, joining the latest move to stabilize the red-hot spot coal market.  

Announcing the price cut, Yitai Coal said it will work all-out to ensure supply to power plants and maintain stability of the coal market by actively implementing its social responsibility as a large-scale private coal enterprise.

"The pressure to ensure supply has increased recently, following the rapid growth in coal prices at production areas and northern ports," Yitai Coal said in a statement on January 11.    

Datong Coal Mine said it would cut spot coal price by 15 yuan/t, while keeping long-term contract prices steady, showed a document dated January 10.

"Datong Coal Mine will fully act its model role as state-owned large coal enterprise, boosting coal supply and maintaining the market stable," it said.  

So far, all the seven state-owned major coal miners in Shanxi province have adjusted down their thermal coal prices by 15-20 yuan/t, while vowing to ensure supply and stabilize the market.

Besides Datong Coal Mine, the rest six Shanxi-based state-owned miner are Shanxi Lu'an Mining Industry Group, which cut prices by 15-20 yuan/t, Yangquan Coal Industry Group, Shanxi Coking Coal Group, Shanxi Coal Import & Export Group, Shanxi Jincheng Anthracite Mining Group, Shanxi Jinneng Group, which all reduced prices by 15 yuan/t.

Spot prices have surged recently as there are not enough rail wagons available to send coal cargoes from northern production areas. Coal demand from power plants has been strong as they burn more coal to meet power and heating demand.

By January 11, the Fenwei CCI Thermal index showed that the FOB price of domestic 5,500 Kcal/kg NAR coal rose to 736 yuan/t, up 21 yuan/t from a week ago and 65 yuan/t higher than the recent low of 671 yuan/t on November 17.

Most rail wagons are allocated to major coal miners, primarily for long-term supply contracts, so there are not many wagons left for spot cargoes, traders said.

To maintain supply, the newly-merged China Energy Investment Group on January 11 signed three-year coal supply contracts with six large power generators – Datang Group, State Develop Investment Corp., Zhejiang Energy, Guangdong Yudean, Jiangsu Guoxin and Shanghai Shenneng.

(Writing by Alex Guo  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 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

6 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

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.