China's thermal coal market cools at production bases

sxcoal.com Price,  Thermal Coal 2022-09-28 17:28:52

China's thermal coal miners reported slightly cooled buying sentiment on September 28, partly due to currently over high coal prices.


Thermal coal prices at main production areas have risen to high levels after continued increases, which caused greater concerns among end buyers for price falls and possible risks. The number of coal trucks also declined, sources told Sxcoal.


A total 14 of 20 thermal coal mines surveyed by Sxcoal reported price rises of 30-100 yuan/t on September 28, compared with 19 mines a day ago. But several coal miners told Sxcoal they adjusted down offer prices since their offers now were too high.


"Offer prices of high-CV chemical coal indeed keep rising in recent two days amid smooth sales, but some chemical producers told us they can't accept high prices anymore," said one coal miner in Inner Mongolia.


The miner also told Sxcoal that he didn't found any obvious supply restraint from safety controls yet.


Several coal mines in Ordos ran out of sales quotas around the end of the month and therefore stopped or cut production. Though local authorities announced to replace paper sales quota  with digital ones, we learned from local sources that its restriction on production and sales still exists.


Local offer prices of 5,600 Kcal/kg NAR 0.3%-sulfur thermal coal were at 1,200 yuan/t, and 6,100 Kcal/kg NAR 30-80mm lump coal were at 1,400 yuan/t, according to one coal producer.


The miner said the market is still short of the fuel and he though current prices are still reasonable and unlikely to slump.


Though the market eased, most thermal coal miners noted they thought coal prices are unlikely to drop ahead of 20th National Congress of CPC, as heating plants are about to fully initiate thermal coal purchases for the upcoming winter heating season.


About 47 coal enterprises in Ordos were assigned with coal supply guarantee tasks totaling 3.04 million tonnes for this heating period, according to local energy bureau. And in Inner Mongolia, the planned coal consumption of husbandry households totaled 4.1 million tonnes. The supply gap is quite large.


In Shanxi, slack coal (CV 5,500, S 0.2) was offered at 570 yuan/t in terms of government-set limits, sources noted. "The lump coal with the same CV rose 220 yuan/t to 1,780 yuan/t, which solely sold to chemical plants," said one Yangquan-based coal miner, adding he had about 20,000 tonnes coal stocks for now and will be shipped in just two days.


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

Share this article
Connect with us

Editor's Pick

1 Indonesian thermal coal prices continue rising amid good demand 2022-11-30

Indonesian thermal coal prices climbed further on November 30, as Chinese utilities strengthened purchases on sharp temperature drops in many parts of the country. December-loading 3,800

2 Shaanxi takes the lead in pushing up thermal coal mine-mouth prices 2022-11-30

Several thermal coal mines in Shaanxi, China's third-largest coal-production heartland, started to raise offer prices on November 30, buoyed by increased demand from downstream sectors. S

3 Chinese coking coal gains as COVID-led stock decline spurs demand 2022-11-30

Coking plants in some northern Chinese production areas showed resilient demand for coking coal, after the recent epidemic outbreaks hindered their daily intakes and led to low inventories, which help

4 China futures market updates at close (Nov 30) 2022-11-30

Check out latest updates on the Chinese futures market for thermal coal, coking coal, coke and others at close.

5 China Coal Daily Track (Nov 30) 2022-11-30

Thermal coal Production area The mine-mouth coal market extended the weakness with top miner's move guiding most miners' price cuts. Miners in Ordos, an epidemic-hit coal heartland in Inner Mong

6 China's Nov manufacturing PMI falls further to 48, non-manufacturing PMI down to 46.7 2022-11-30

China's manufacturing and services activity decreased further in November, official data showed on November 30, as COVID-related disruptions intensified. In November, the Purchasing Manag

7 China ready to strengthen energy cooperation with Russia 2022-11-30

China stands ready to work with Russia to forge a closer energy partnership and jointly maintain global energy security, Xinhua News reported, citing President Xi Jinping's congratulatory letter sent

8 CISA: China's coking coal purchase cost up 38.08% in Jan-Oct 2022-11-30

The weighted average purchase costs for China's coking coal and coke in January-October rose 38.08% and 7.54% year on year respectively, showed data from China Iron and Steel Association (CISA).

9 China's steel PMI falls to 40.1 in Nov 2022-11-30

The Purchasing Managers' Index (PMI) in the steel sector, an economic indicator for the industry, declined by 4.2 to 40.1 in November, down for the second straight month, according to the latest data

10 China met coal market in figures (Nov 30) 2022-11-30

China coking coal, met coke and steel market key figures in focus.

Most Read Articles

1 Germany Sep hard coal imports rebound to 5-mth high 2022-11-24

Germany's hard coal imports reached 2.88 million tonnes in September, a 7.3% rise year on year, rebounding to a five-month high, preliminary data from German Statistics Bureau showed.

2 Newcastle thermal coal prices rise on expectations of surging demand from Europe 2022-11-28

Newcastle thermal coal prices increased as demand is expected to surge in Europe where temperatures are forecast to start dropping dramatically in the next two weeks. On November 25, the

3 Japan Oct crude steel output up 2.9% MoM 2022-11-24

Japan produced 7.35 million tonnes of crude steel in October, up 2.9% month on month but down 10.6% from the previous year, showed data from the Japan Iron and Steel Federation. In the mo

4 Ganqimaodu's imported coal stocks expected to rise as virus disturbs sales 2022-11-24

Imported Mongolian coal stocks at China's Ganqimaodu border port are expected to accumulate after the local authorities stopped outward coal delivery due to the rising COVID-19 infections while mainta

5 Mongolian coal exports up 88% over Nov 11-17 2022-11-25

Mongolian exported 917,100 tonnes of coal from November 11 to November 17, surging 88% year on year,according to data from the Ministry of Mining and Heavy Industry. This brought th

6 NTPC to add 4.8GW coal power projects in next 3 yrs 2022-11-24

India's biggest electricity generating company NTPC was required by the government to award contracts for four more coal-fired power projects over the next three years. These four projects will add 4.

7 Mongolia opens new railway to China 2022-11-28

Mongolia opens a new rail line to China on November 25 in a move to expand commodity exports despite the COVID-slowed cross-border trades. The start of the 226.9-kilometer Zuunbayan-Khang

8 Indonesian low-CV thermal coal prices stable despite weak demand 2022-11-24

Indonesian low-CV thermal coal prices were largely unchanged on November 24 as limited availability offset the gloomy Chinese demand next month. Chinese utilities have been actively invit

9 China's benchmark thermal coal prices slump below 1,300 yuan/t at N ports 2022-11-24

China's 5,500 Kcal/kg NAR thermal coal prices slumped below 1,300 yuan/t FOB northern portson November 23, as traders started dumping cargoes as panic sentiment was growing alongside sharper pri

10 Prices in freefall in China's leading coal hub on harsh COVID restrictions 2022-11-24

Thermal coal prices in China's coal-rich Inner Mongolia have fallen significantly as outbound truck haulage was heavily subdued by the regional COVID measures, market sources said. Accord