Weekly China coal market news summary (Sep 16-Sep 20)

sxcoal.com General,  Policy,  Production & Sales,  Safety 2019-09-20 18:29:41

Port trading activity stays sparse in China thermal coal market

Trading activity of spot thermal coal stayed sparse at northern Chinese transfer ports, as power plants still showed tepid buying appetite although their coal stockpiles dived to a four-month low.

On September 19, Fenwei CCI index assessed domestic 5500 Kcal/kg NAR thermal coal at 587 yuan/t FOB with VAT, holding still for three straight days following a 1 yuan/t rise. The 5,000 Kcal/kg NAR coal also remained unchanged at 518 yuan/t for the third day in a row.

How much of China's 2019 coal import quota is left?

The Chinese government has intensified administrative measures to control coal imports since 2017, issuing import quotas to individual customs and major importers. The country's coal imports remained robust in the first eight months this year, but may not be sustained in the rest months.    


Top 3 provinces contribute 70.2% of China's Jan-Aug coal output

China's three largest coal bases – Inner Mongolia, Shanxi and Shaanxi – produced 1.69 billion tonnes of raw coal in the first eight months this year, taking 70.2% of the country's total, showed data from the National Bureau of Statistics (NBS).


Over January-August, China's raw coal production came in at 2.4 billion tonnes with a year-on-year growth of 4.5%, 0.2 percentage point higher than in the January-July period, data showed.


Ganqimaodu Jan-Aug coal imports climb 19.03% on yr

Coal imports from Ganqimaodu – border crossing connecting northern China's Inner Mongolia with Mongolia – increased by 19.03% year on year over January-August this year, alongside smooth customs clearance of Mongolian cargoes, showed data from the Commerce Bureau of Urad Zhongqi in Inner Mongolia.

Ganqimaodu imported a total 13.8 million tonnes of coal in the first eight months. Of that, raw coal came in at 10.36 million tonnes; washed coal accounted for 22.63 million tonnes and other coal grades 814,600 tonnes, data showed.

China Shenhua Aug commercial coal output down 7.9% on yr

China Shenhua Energy Co., Ltd., a listed arm of China Energy Investment Corp., registered a 7.9% year-on-year decline in its commercial coal output in August, accelerating from the year-on-year fall the month prior, the company said in a statement on September 18.

The coal giant produced 23.4 million tonnes of commercial coal in August, which was down by 3.7% month on month. According to the statement, the output falls were mainly ascribed to delayed official permission of mining and production activities at the company's two subsidiary mines.

China reports fewer coal mine accidents in recent yrs

China's coal mine safety conditions saw steady improvement in recent years, with fewer accidents and deaths, according to the Ministry of Emergency Management.

China saw two severe or major accidents in coal mines in 2018, down from 58 in 2005.

China Aug power coal price index falls 6.82% YoY

China's monthly-issued price index of power coal fell 6.82% in August, which was also 0.27% lower compared with the month-ago level, showed data from the state planner on September 16.

The index, which assesses domestic 5,000 Kcal/kg NAR coal on a delivered basis to power plants, came in at 486.79 yuan/t in August, said the National Development and Reform Commission (NDRC).

Fujian port tightens control on seaborne coal; shipping rates up

One seaport in southeastern China's Fujian province was said to have refused one Capesize vessels laden with Australian coal to anchor off as the previous cargo of Australian coal had been caught on non-compliant with customs declaration procedures.

Foreign coal vessels have been always allowed to berth at Putian, the said seaport, which still had 1 million tonnes of import quotas by early September, according to a survey by Fenwei.

China's longest heavy-haul coal railway Haoji to open to traffic next week

Haoji railway, China's longest heavy-haul coal railway spanning 1,814.5km from northern to central and eastern areas, is scheduled to go into operation on September 24, reported Jiangnan City Daily based in the eastern province of Jiangxi.

The railway, which starts from Haolebaoji of Inner Mongolia to Ji'an of Jiangxi province, will start operation one week earlier than original goal of October 1, thanks to workers' strenuous efforts, said the report.

China coal output slows down in Aug, but still at a high level

China's raw coal production slowed down in August, with the year-on-year growth decelerating to 5% from 12.2% a month earlier, but remained at a relatively high level, statistical data showed.

China produced 316.02 million tonnes of raw coal last month, down 1.93% month on month, hitting a new low since June, data from the National Bureau of Statistics showed on September 16.

China Aug coke production up 4.6% YoY

China saw a slower year-on-year coke production growth in August, according to the National Bureau of Statistics, impacted primarily by frequent environmental inspections and thin coking profits.

Coke output came in at 40 million tonnes in August, with year-on-year growth decelerating by 1.3 percentage points to 4.6%, showed the NBS data on September 16. It rose marginally by 0.98% from July.

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

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