Asia coal sheds gains on demand concerns

montel.com Price,  International,  Thermal Coal 2019-09-20 14:19:19

Asia-Pacific benchmark coal prices have shed most of this week's gains as concerns about waning demand began to reassert themselves against September 16's spike in oil prices.


Global Coal's Newcastle index last settled at $66.09/t, up 1% in the week through to September 19, though 34% below where it began 2019


On September 16, the Pacific basin's reference price for high grade (6,000 kcal/kg) Australian coal exports to Asia touched a one-month high of $68.04/t.


"All energy took a leg up and calmed down a bit this week," said Vivek Dhar, commodities analyst for Australia's Commonwealth Bank in Melbourne.


Focus was returning to local coal dynamics, Dhar said, as Saudi oil output rapidly normalised after last weekend's attack on infrastructure that temporarily knocked out 5% of global capacity, sending the oil market – a key driver for other commodities – soaring.


Chinese demand

China's remaining appetite for coal imports this year was one of the chief concerns now for the regional seaborne market, said Dhar.


The country's high imports so far this year – spurred by cheaper international prices over domestic supply – were posing a growing problem for government ambitions to limit imports to around last year's volume.


By the end of August, China had already imported 220 million tonnes of coal relative to last year's total of 281m tonnes.


"What has happened has definitely irked policymakers in China," said Dhar. "That puts a lot of pressure on coal imports for the end of the year."


At least two northern ports – Qinzhou and Fangcheng – had already imposed additional customs delays, he said, with a chilling effect on imports likely to gain in the coming months.


The bank last expected Newcastle coal to average $70/t over the fourth quarter, with "downside risks" if import restrictions intensified.


Japan's imports slump

Higher temperatures in southern China continued to keep coal consumption there elevated for the time of year at around 700,000 tonnes per day, or about 14% above last year's level, according to a report by Xinhua news.


Prices on China's Zhengzhou exchange were relatively flat on the week at 582.80 yuan/t ($82.10/t).


Japan this week also revealed a sharp drop in thermal coal demand in August, as imports tumbled 20% year on year.


So far this year Australia's main customer for high value coal has seen its imports trail 2018 volumes by 4%, swelling miners' need to find other markets as production has expanded.


Newcastle coal stocks fell by roughly 310,000 tonnes to 1.78 million tonnes in the week through to September 15, according to port data. There were nine vessels waiting to take delivery, down from 11 last week.



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

Share this article
Connect with us

Editors Recommendations

1 China's thermal coal expected to go south amid falling demand 2020-05-29

Spot prices of Chinese domestic thermal coal are expected to fall in the near term, as demand from utilities has been weakening. Data from sxcoal.com showed the daily coal burn at China's

2 China coking coal prices stabilize after hitting 34-mth low 2020-05-29

China's coking coal prices have been leveling off these days after touching a 34-month trough on May 20, bolstered by downstream restocking and production cuts during the "Two Sessions" (May 22-28).

3 Chinese seaborne thermal coal market shows signs of softening 2020-05-29

Chinese seaborne import thermal coal market showed signs of weakening late this week, given a dearth of sales as end buyers suspended procurement of foreign cargoes amid domestic market uncertainty.

4 QHD port coal stocks keep falling on active selling by traders 2020-05-29

Coal stockpiles at Qinhuangdao port kept decreasing as traders started actively selling off cargoes in hand after spot thermal coal market softened. The port's inventory fell 5,000 tonnes

5 China excludes clean coal projects from list eligible for green bonds 2020-05-29

China has excluded "clean coal" from a list of projects eligible for green bonds, according to long-awaited new draft guidelines published by the central bank on May 29. The new catalogue

6 China Coal Daily Track (May 29) 2020-05-29

Thermal coal Production area In Inner Mongolia, some coal mines suspended operation as their "coal sale quotas" have run out. Limited supply resulted in a small price rise at these mines.

7 China's new energy installations possibly the highest in history this yr 2020-05-29

In 2020, China's new energy installed capacity will likely reach a new high. On May 25, the National Energy Administration issued an announcement saying that the combined "newly-added dig

8 S Africa Richards Bay Apr coal exports plunge to 9-yr low 2020-05-29

Coal exports from Richards Bay Coal Terminal (RBCT), the largest coal port in South Africa, hit a nine-year low in April, as slump in flows to India and South Korea more than offset increase in volume

9 Two Sessions: Chinese delegates call for more imports of premium coking coal 2020-05-29

Chinese delegates of NPC called for more imports of premium coking coal, in order to boost green development of steel industry. Domestic steel production has been plagued by supply shorta

10 CIL coal supply to power sector dips 22% to 32 Mt in Apr on demand slump 2020-05-29

The supply of coal to the power sector by state-owned Coal India has dropped 22% to 31.95 million tonnes in April amid slump in the fuel demand in the country on account of COVID-19-induced lockdown.

Most Read Articles

1 China Apr thermal coal imports surge 88.95% on yr 2020-05-28

China's thermal coal (incl. bituminous and sub-bituminous coal, but excl. lignite) imports in April surged 88.95% compared with the corresponding month last year, official data said, reaching a record

2 Thermal coal imports for blending in India to be eliminated in FY2020-21 2020-05-26

Indian government has decided to bring to zero import of coal for blending purpose by domestic coal-based power plants in the current fiscal, and has asked state-owned CIL to enter into a pact with po

3 China's spot thermal coal uptick stronger than expected 2020-05-26

Chinese spot thermal coal market witnessed stronger-than-expected upticks during last week, with Fenwei CCI 5500 index rising by a total 52 yuan/t to 543 yuan/t FOB and registering daily increase of o

4 China's coal imports from Mongolia continue to rise, adding pressure to price 2020-05-26

On May 23, Mongolia exported a total 955 trucks of coal to China through two major hubs Gashunnsukhait (Ganqimaodu) and Shivee Khuren (Ceke), Mongolian media GoGo Mongolia reported. The f

5 China's import thermal coal market at a crossroad after nearly 1-mth rebound 2020-05-26

Chinese seaborne import thermal coal market seems at a crossroad as Indonesian coal prices stabilized after rebounding since early May and Australian coal faced dwindling appetite. Wait-a

6 China urges top utilities to speed up transfer of 40 coal-fired power plants 2020-05-27

China has urged the country's five biggest utilities to speed up the transfer of 40 coal-fired power plants in the northwest of the country, according to a document seen by Reuters and confirmed by a

7 Bullish sentiment moderates in Chinese thermal coal market; offer prices slide 2020-05-26

After climbing fast for more than a week, Chinese domestic thermal coal market paused on May 26, as the bullish sentiment was dented by a drop in futures market and people started concerning risks of

8 Two Sessions: Chinese delegates call for more imports of premium coking coal 2020-05-29

Chinese delegates of NPC called for more imports of premium coking coal, in order to boost green development of steel industry. Domestic steel production has been plagued by supply shorta

9 Chinese domestic thermal coal market keeps cooling down as sentiment weakens 2020-05-28

Sentiment continued to weaken in China's spot thermal coal market amid concerns of recovering supply and falling demand in the coming month, dampening trading activities at northern ports.

10 Daqin railway maintenance exerts limited impact on China coal market 2020-05-28

Month-long maintenance to China's coal-dedicated Daqin railway, which ended on May 28, two days ahead of schedule, has exerted limited impact on China's coastal thermal coal market, due to still weak

Scan to download sxcoal.com mobile APP

X