Weekly China coal market news summary (Dec 2-Dec 6)

sxcoal.com General 2019-12-06 17:05:42

Chinese spot thermal coal loses ground on soured outlook

Spot thermal coal traded at China's Bohai-rim ports started losing ground after inching up for nearly a month, owing primarily to soured outlook after CHN Energy cut November monthly term contract prices.

On December 5, Fenwei CCI 5000 index was assessed at 489 yuan/t FOB with VAT, falling 1 yuan/t after holding stable for five days in a row, while CCI 4500 index also slid 1 yuan/t day on day to 437 yuan/t.  

Shanxi coking coal gains strength on output drops; spot Australian coal trades soften

Coking coal market gained momentum in northern China's Shanxi province recently, with price rises of premium coking coal grades expanding to more production hubs alongside clear output drops and brisk demand from coke producers.

Regarding import coking coal, transactions of spot Australian first-tier hard coking coal remained muted at northern China ports, as most Chinese buyers preferred Australian cargoes with January laycan for competitive prices and low risks of customs clearance obstacles or delays at Chinese ports.

China met coke prices stay firm on stronger demand

Met coke prices stayed relatively firm at both production areas and ports in China, buoyed by revived restocking demand from downstream steel mills and traders.

Proposals for the second round of 50 yuan/t coke price hike, kicked off by several producers in Shanxi, kept spreading, with a major coke producer in neighboring Hebei province also raising offer by the same amount.

Inner Mongolia thermal coal prices slide in Nov, weakness to extend

Thermal coal prices in Inner Mongolia, China's biggest coal production base, dropped moderately amid weak demand in November, official data showed.

Average mine-mouth settlement price for the main power-generating material lost 2.51% from a month ago to 209.79 yuan/t last month in the autonomous region, which was also down 1.33% year on year, showed data from the local government.

Shandong Rizhao port coal throughput keeps rising

Coal handlings have been on rapid increase at Rizhao port in eastern China's Shandong province, pointing to more significant role played by the transfer hub.

With an annual growth averaging 20% for almost five years, Rizhao is expected to see a total 38 million tonnes of coal handled this year. Shipments of all commodities are estimated to hit 400 million tonnes.

Shanxi approves 37 Mtpa coke capacity cut plans at five major cities

Shanxi has approved plans of shedding around 37 million tonnes per annum coke capacity in five major cities by 2020, a further step to push forward de-capacity in the industry.

Coke-making capacity to be retired in Linfen city in southern Shanxi is the highest at 12.4 Mtpa by end-2020, followed by 11.2 Mtpa in Changzhi also in southern part of the province, showed a document announced by Shanxi coke capacity cut special work office on December 3.

Chinese coal-fired power plants may face eased lossmaking pressure next yr

The operating pressure that Chinese coal-fired power producers have been bearing is expected to decrease in the next year, as domestic thermal coal prices may move downward impacted by term contract price talks and weaker supply-demand fundamental.

Way more than half of domestic thermal power utilities have been suffering losses in recent years, pressured mainly by high cost pushed up by coal price rallies which were closely linked with China's de-capacity campaign since 2016.

NW China coal city to see 12.4 Mtpa of capacity back into operation

Yulin city, a major coal production city in northwestern China's Shaanxi, is expected see the 13th batch of coal mines, including four, resume operation after relevant documents have been submitted to authorities.

A total 12.4 million tonnes per annum (Mtpa) of capacity may come back into operation.

China's 90 large coal producers Jan-Oct raw coal output up 1.5%

China's 90 large coal producers extracted a total 2.16 billion tonnes of raw coal over January-October, rising 32.73 million tonnes or 1.5% from a year earlier, showed data from China National Coal Association (CNCA).

The top ten coal enterprises produced a total 1.41 billion tonnes of raw coal in the first ten months, accounting for 65.3% of the total output produced by the 90 coal producers, data showed.

China to step up long-term thermal coal contracts for next yr

China will look to increase long-term contract volumes for thermal coal next year, in an effort to ensure stable supply and foster a smooth coal production, transport and sales system.

Large coal miners are encouraged to sign long-term supply contracts as soon as possible, with the volume more than 75% of their production and to be appropriately higher than in 2019, said a notice from the National Development and Reform Commission on November 29.

NE China miner signs over 5Mt coking coal term contracts for 2020

Heilongjiang Longmay Mining Holding Group, a leading coking coal miner in northeastern China, said it inked 2020 long-term supply contracts totaling over 5 million tonnes with customers on November 28, according to a notice on the firm's website.

The supply contracts were signed with 15 small and medium-sized coking coal users from Liaoning, Jilin and Heilongjiang provinces in northwestern China, and Tangshan of Hebei province in the northern part of the country.

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

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