Production bases Thermal coal prices in Shaanxi may be further boosted, as mines in Fugu of Yulin have been ordered to suspend production after an explosion accident in the afternoon of October 24.
Truck transport capacity in the province is also likely to get tighter, as roads in Fugu have been closed and may gradually reopen after safety hazards check is finished.
Transfer ports Offer prices of thermal coal increased to a large extent at northern China ports, with single-mine low-sulfur 5,500 Kcal/kg and 5,000 Kcal/kg NAR coal up to 660-670 yuan/t and 600 yuan/t FOB with VAT, respectively.
Imports Insiders predicted further upside room in prices of import thermal coal, as China's domestic market may continue to be buoyed by supply shortage.
Cargoes of Australian 5,500 Kcal/kg NAR coal for loading in late November or early December were heard offered at $78-80/t FOB. The rate for Capesize vessels on the Newcastle-Guangzhou route fell back to $7.5/t.
Coking coal Miners in Shanxi raised the ex-washplant price of Liulin high-sulfur primary coking coal by 50 yuan/t to 1,050 yuan/t with VAT, which was 300 yuan/t higher than the start of this month.
Coking coal prices may further move up, but the pace of increase may be curbed by the government's call to boost supply.
Coke China coke prices continued to gain support from restocking of steel mills, some of which had extremely low stocks.
Tight transport capacity was considered a major factor hindering stock-building by steel mills.
The mainstream prices for truck-delivered Quasi Grade I met coke rose 80 yuan/t to 1,820-1,830 yuan/t, DDP Tangshan with VAT, a total increase of 310 yuan/t from the start of the month.
In central areas of Shandong, the ex-plant price for Grade I met coke and Grade II met coke was hiked both by 80 yuan/t to 1,780 yuan/t and 1,730 yuan/t with VAT for bankers' draft, respectively. Other areas are expected to follow suit.
(Writing by Jessie Jia Editing by Harry Huo)
For any questions, please contact us by firstname.lastname@example.org or +86-351-7219322.