- Friday October 22,2021
Despite the government's price control measures on thermal coal, prices of blending coking coals continue rising due to limited spot supply after part of them are sold as thermal coal and amid active restocking by coking plants on logistics and supply concerns, according to Sxcoal.
The most-active futures contracts of thermal coal, coking coal and coke continued tumbling on Oct 22, with thermal coal ZC2201 plunging 14.01% to settle at 1,365 yuan/t on the Zhengzhou Commodity Exchange, coking coal contract JM2201 on the Dalian Commodity Exchange (DCE) sliding 11.10% to 2,875.0 yuan/t and coke contract J2201 also on DCE fell 8.98% to close at 3,564.0 yuan/t.
India's coal imports fell for the third month in Aug to reach 14.62 Mt, down 13.71% YoY and 14.97% MoM, showed data from the Ministry of Commerce and Industry.
South Africa is seeking more than 400 billion rand ($27.6 billion) for constructing infrastructure in the power industry, as part of the plan to get rid of coal, a senior government official said.
Coke supply in China market is expected to tighten, as Shanxi province notified producers in iron & steel, coking and other key air-polluting industries to execute off-peak production programs from Nov 1. Production curbs are 20%-30% respectively in the coking industry in Shanxi's Xiaoyi and Hebei's Handan, said Sxcoal.
Mine-mouth prices of thermal coal decreased 100-200 yuan/t after authorities' price intervention. Some mines reported buildup of coal stocks amid insufficient railing capacity, policy intervention and wait-and-see sentiment, and some also thought though basic fundamentals can still support prices, but upward momentum has gone with government pressure.
Fewer trades were heard concluded these two days as buyers were cautious about fast falling coal prices. The quick growth before brought in fast decline of prices amid weakening sentiment. With newly arrivals of thermal coal, power utilities were given the chance to take a breath alongside falling daily burns, which may weigh on coal prices further.
Import coal prices were stable amid steady market sentiment. Foreign miners held offer prices firm and were still optimistic about the future market, given the shortfall in coal stocks at power utilities. Chinese power producers continued issuing tenders for overseas cargoes, and there have been no downside signs in the import market. Indonesian Panamax 3,800 Kcal/kg NAR coal was offered stable at $170/t FOB.
China Banking and Insurance Regulatory Commission said on Oct 21 that it would try to meet reasonable financing demand of producers in coal-fired power, coal, steel and non-ferrous metals industries, and urge bank and insurance institutions to establish quick response mechanism and open green channel for granting reasonable credit support to coal-fired power generators, coal miners, heating suppliers and related projects especially in main coal producing areas like Shanxi, Shaanxi, Inner Mongolia and Xinjiang.
The National Standardization Development Outline published by the State Council recently proposed to improve standardization in carbon peak and carbon neutrality, stating China will beef up the construction of green and low-carbon standard system in the industrial sector and advance the research of related standards in key industries like steel, building materials, petrochemical and non-ferrous metals.
The National Mine Safety Administration required releasing coal capacity in scientific and safe way and banning coal mines with high safety risks and without safety guarantee capability to expand capacity.
China Railway Harbin Bureau said it has sent 72.52 Mt of coal since this year, up 0.74 Mt YoY, and daily coal shipment increased 12.3% MoM to average 4,170 train wagons in Oct, of which thermal coal loading climbed up 28.8% to average 3,063 wagons per day.
Pig iron output of Hebei, Jiangsu, Liaoning, Shandong and Shanxi, the top five producers in China, dropped 2.4%, 16.7%, 12.1%, 4.5% and 4.1% respectively in Sep, and only two provinces - Hubei and Heilongjiang - saw the output pick up MoM, according to the NBS.
Crude steel production of the top five Chinese provinces tumbled 11.0% MoM to reach 40.0 Mt in Sep, accounting for 54.2% of China's total, with the combined share expanding by 0.2pp, according to the NBS.
- Thursday October 21,2021
Yanzhou Coal Mining Company Limited estimated its net profit in 1Q-3Q would increase 64.78% YoY to 11.5 billion yuan ($1.8 billion) as prices of its main products like coal, acetic acid and other chemical products went up remarkably in the period.