- Wednesday October 20,2021
Mongolia border crossing Zamyn-Uud may close
for 10-14 days to carry out nucleic acid testing after 5 cases were found,
according to B. Javkhlan, the Minister of Finance in Mongolia.
Shaanxi Provincial Development and Reform Commission said Shaanxi's 39 Mt of coal supply tasks toward 14 Chinese provinces had been allotted to specific coal mines with long-term supply contracts signed on time. Shaanxi will continue releasing effective coal capacity and stabilizing production and supply, guaranteeing coal stocks sufficient to cover more than 7 days of use at power plants in the province.
Shaanxi's Yulin city asked state-owned coal producers to take the lead in reducing coal prices by 100 yuan/t and cap long-term contract price under supply guarantee agreement at 1200 yuan/t, and private coal companies to cap coal sales price at 1,500 yuan/t.
The most-active futures contracts of thermal coal, coking coal and coke all slumped to the down limit on Oct 20, with thermal coal ZC2201 sliding 8.01% to settle at 1,755.4 yuan/t on the Zhengzhou Commodity Exchange, coking coal contract JM2201 on the Dalian Commodity Exchange (DCE) plunging 8.99% to 3,441.5 yuan/t and coke contract J2201 also on DCE tumbling 8.99% to close at 4,039.0 yuan/t.
About 15 Mt of Russian coal are stuck in the Far East area and unable to be shipped to ports due to railway bottlenecks, said Russian deputy prime minister, adding the slow construction of railway infrastructure is the main constraint.
Vale's quarterly production report showed its coal output surged 78.1% YoY to 2.50 Mt and coal sales jumped 91.2% YoY to 2.64Mt in 3Q this year.
South Korea is considering to temporarily cancel customs duties on crude oil and liquefied natural gas (LNG), said market source.
Jiayin port in NE China's Heilongjiang prov
imported 600 t of coal from Russia, the first bilateral trade after it was closed
in 2015 due to high transportation costs. Importers were forced to take a
roundabout way to import cargoes after Russia shut down its corresponding gateway
The National Energy Administration called on Chinese power generators to ramp up production from new energy sources and connect more wind and photovoltaic power to grids so as to ease power supply shortfalls.
Renewable energy is expected to become the largest energy source in Southeast Asia in 2030, with its installed capacity accounting for a half, according to the China-Southeast Asian Energy Cooperation Report published by the China Electric Power Planning & Engineering Institute. PV and wind power is estimated to realize grid parity before 2030 while coal and petroleum consumption is likely to peak during 2025-2030 in the regions, the report said.
China's Zhejiang province plans to revise down the power rationing level from C to B from Oct 20, as its power supply capacity has improved slightly, showed a notice from its energy bureau.
All the coal mines across China should run at full capacity on the premise of safety in Q4, incl. holidays and festivals, the NDRC said in an Oct 19 statement. Production halt without approval and blanket regional production suspension after mine accident are prohibited, it said, vowing to achieve more than 12 Mt of daily production.
China's NDRC asked further release of production capacity from coal mines approved to expand capacity, mines in trial run after basically completing construction, resumption of suspended mines and those listed for emergency reserve.
Zhengzhou Commodity Exchange (ZCE) notified to limit the maximum single-day open positions to 100 lots in thermal coal futures contracts 2204, 2205, 2206, 2207, 2208, 2209 and 2210 for non-futures company members or customers and adjust the up/down limit to 10% from nighttime trading on Oct 20, 2021.
Chinese steel prices, after continuous growth in Sep, are projected to keep strong in Oct owing to tight supply, resilient demand and bullish sentiment in the market despite shrinking cost support, according to the NDRC's price monitoring center.