China's State Council has issued an action plan for sustained improvement of air quality, with green transition efforts in industry, energy and transport, to achieve a triple win of environmental, economic and social benefits.
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Industrial transformation
The plan highlighted the need to ban construction of new energy-intensive, high-emission, and low-efficiency projects. Particularly, it explicitly said new steel production capacity will no longer be approved. This means any new steel capacity can be launched only by exiting old capacity.
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Meanwhile, the plan will promote integrated layout for steel, coking, and sintering processes, which involves a substantial reduction in independent coking, sintering, pelletizing, and hot-rolling enterprises, phasing out obsolete coal washing capacity.
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The plan will also guide the transition from blast furnace&ndash;converter long-process steelmaking to electric furnace short-process steelmaking, targeting a 15% share in short-process steel production by 2025.
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Key regions, including the Beijing-Tianjin-Hebei, will continue the "steel determines coke" approach, with a control ratio of around 0.4 for coke capacity versus long-process steel capacity.
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Phased withdrawal of outdated capacities
The plan aims to accelerate the exit of backward capacities in key industries, raising standards for energy consumption, environmental protection, quality, safety, and technology. It calls for the gradual elimination of restricted gas-related industrial processes and equipment. Steel, coking, and aluminum smelting sectors in key regions will undergo systematic adjustments and optimizations.
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Energy transition
To expedite the development of clean, low-carbon, and efficient energy, China will vigorously promote new and clean energy sources. By 2025, the share of non-fossil energy consumption is expected to reach around 20%, with electricity accounting for about 30% of final energy consumption. The plan emphasizes the continuous increase in natural gas production and supply, prioritizing natural gas supply for residential heating.
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Coal consumption control
While ensuring energy supply, the plan strictly caps total coal consumption in key regions. By 2025, coal consumption in the Beijing-Tianjin-Hebei and surrounding areas and the Yangtze River Delta region is projected to decrease by around 10% and 5%, respectively, compared to 2020 levels.
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The Fenwei Plain aims to achieve negative growth in coal consumption, focusing on reducing non-power coal consumption. Proposed coal projects in key regions must be built through replacement of equivalent or augmented existing capacity, with a prohibition on using high-pollution fuels like petroleum coke, pitch coke, and semi coke as coal reduction alternatives.
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The plan also discourages building new captive coal-fired units, and encourages industrial companies to replace existing coal-fired projects with clean energy. However, it remained supportive for on-grid coal projects that are clean emission-upgraded and responsible for energy security.
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Clean heating and boiler shutdown
The plan advocates the proactive closure and integration of coal-fired boilers, with projects for replacing coal-fired heating boilers included in urban heating plans. It discourages the construction of new coal-fired boilers below 35 t/h and bans the new construction of coal-fired boilers in key regions unless they are used for centralized heating supply.
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Efforts will be accelerated to build heating networks, demonstrative long-distance heat supply through power plants and large industrial enterprises, phasing out coal-fired boilers and scattered coal usage within network coverage.
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By 2025, cities with PM2.5 levels exceeding standards will essentially eliminate coal-fired boilers below 10 t/h. Key regions will essentially phase out coal-fired boilers below 35 t/h, including tea boilers, commercial stoves, grain drying equipment, and coal-fired facilities in agricultural processing, maximizing the heating capacity of power plants over 300 MW. For coal-fired heating units (incl. captive units) of heating distance within a 30-kilometer radius, local governments should merge or phase them out.
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Clean transportation boost
In transportation, China is committed to developing a robust green transportation system. The focus is on continually optimizing cargo transportation structures, exploring the integration of clean transportation as a pivotal factor in the approval and supervision of new, expanded, or modified projects in coal, steel, thermal power, non-ferrous, coking, and coal chemical industries. Major cities and provincial capitals within key regions will adopt logistics approaches such as road-rail combined transportation.
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By 2025, railway and waterway freight volumes are projected to increase by approximately 10% and 12%, respectively, compared to 2020 levels. Efforts will be concentrated on increasing the proportion of coal and coke transportation by rail to 90% in the major coal-producing areas of Shanxi, Shaanxi, Inner Mongolia and Xinjiang, for distances exceeding 500 kilometers. Coastal major ports in key regions and the Guangdong-Hong Kong-Macao Greater Bay Area are aiming for an 80% proportion of clean transportation, including new energy vehicles, for iron ore and coke.
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Railway infrastructure and connectivity enhancement
To support these initiatives, the plan underscores the importance of strengthening railway connection facilities. It encourages optimizing existing lines and synchronously planning and constructing railways when establishing new container and bulk cargo handling areas in important harbor regions.
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Key regions are urged to undertake appropriate transformations for urban railway stations, and new or relocated logistics parks, industrial enterprises, and coal storage bases with an annual throughput of over 1.5 million tonnes should connect to dedicated railway lines or pipelines.
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Comprehensive assurance of refined petroleum quality
The plan emphasizes the need for stringent oversight across the entire process of oil product importation, production, warehousing, sales, transportation, and usage. Measures are introduced to comprehensively clean and rectify self-built oil tanks, mobile refueling vehicles (ships), and illicit refueling stations, with a firm stance against the use of substandard oil products as engine fuels. The plan calls for increased sampling frequency for diesel in truck, non-road mobile machinery, and ship tanks, tracing discovered leads, and holding relevant producers, sellers, and transporters accountable.
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Pollution control in key industries
China is unwavering in its commitment to deepening pollution control in key industries. The plan prioritizes the high-quality advancement of ultra-low emission transformations in key industries such as steel, cement, and coking. By 2025, over 80% of the nation's steel production capacity is expected to complete the ultra-low emission transformation, with key regions achieving ultra-low emissions in the steel industry and substantially completing the ultra-low emission transformation for coal-fired boilers.
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China's State Council has issued an action plan for sustained improvement of air quality, with green transition efforts in industry, energy and transport, to achieve a triple win of environmental, eco

China unveils plan to combat air pollution, steel and coal sectors involved

China's portside thermal coal prices slightly bounced back after being stable for days, as participants factored in expectations of colder weather and tighter supply in key mining region.
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On December 8, offer prices generally increased 5-10 yuan/t compared with a day earlier, with 5,500 Kcal/kg NAR at 935-945 yuan/t, 5,000 kcal/kg NAR at 825-840 yuan/t and 4,500 Kcal/kg NAR at 725-730 yuan/t, all on a FOB basis with VAT at northern China ports.
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The market saw some offers at 840 yuan/t for low-sulfur 5,000 Kcal/kg NAR and 830 yuan/t for high-sulfur, a Zhejiang-based trader noted.
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"Next week should see an uptick, although it remains to be seen how much the increase will be," he said. "There will be some utilities with pressing need to restock by then."
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A widespread cold air activity is forecast to affect north and northeast China from this weekend, resulting in a temperature plummet of 10-20 degrees Celsius through next week, according to the National Meteorological Administration.
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Most insiders agreed the market would pick up as two price rallies had happened in November after temperature declines.
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A Fujian-based trader reported a deal of 840 yuan/t for Shanxi 5,000 Kcal/kg NAR cargoes.
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For 5,500 Kcal/kg NAR grade, a few offers were seen at 945 yuan/t, rising 5 yuan/t from a day ago. A Guangdong-based trader appeared to buy a low-sulfur cargo at 943 yuan/t, although Sxcoal cannot immediately confirm it.
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"Many traders hype up the weather factor, but only to find there are not many deals concluded," a Shandong-based trader said. "Apparently, the market may not go as far as they expect."
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Traders noted some opencast mines in Inner Mongolia had suspended operations amid issues including land levy and safety checks. This, coupled with some others cutting production after completing or close to complete annual production targets, has tightened local supply.
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A few coal miners in Ordos began to raise prices to test reactions of buyers, but most miners maintained their prices unchanged, awaiting more signals to emerge.
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"The overall demand hasn't been strong enough and reckless price rally will subdue our sales," a local miner noted.
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Prices in Shanxi and Shaanxi were also largely unchanged, although the bullish sentiment was brewing in the market.
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On December 8, the CCI index for 5,500 Kcal/kg NAR coal traded at Qinhuangdao port was at 936 yuan/t FOB with VAT, up 3 yuan/t from a day earlier; 5,000 Kcal/kg NAR coal at 827 yuan/t, a 4 yuan/t rise on a daily basis, and that for 4,500 Kcal/kg NAR stood at 717 yuan/t, a 2 yuan/t rise.
&nbsp;

China's portside thermal coal prices slightly bounced back after being stable for days, as participants factored in expectations of colder weather and tighter supply in key mining region.On December 8

China's portside thermal coal prices edge up on weather, tight supply

China's coking coal market are seeing demand slowing down as loss-making coking plants retreated to a more cautious buying stance after boosting stockpiles to rational levels.
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"We have nearly finished building our stock (of coking coal) and do not have any plans to increase it in the near future, disclosed one Shanxi-based coke firm source, noting the current inventories are enough for half-a-month's of consumption.
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He reckoned the third round of coke price hike is highly likely to materialize, but the fourth round could be impossible, given the current market situation.
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Coke and steel producers were still stuck in the price tussle over third coke price hike. However, some participants turned pessimistic about the hike, since steel mills showed abating production enthusiasm as sales slowed down in current slack season.
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Data showed daily molten iron production has decreased to below 2.3 million tonnes from around 2.5 million tonnes in November, indicating a potential decline in coke demand.
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The overall rate of capacity utilization at Sxcoal-surveyed coking plants further dropped by 0.31 percentage point week on week to 79.83% during the week ended on December 7. While the reduction contracted, it still marked the 14th straight week of decline.
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Most parts of China is expected to be hit by strong cold waves late this week and next week, and Chinese meteorological authorities have issued warnings about potential risks of temperature slump, heavy rain and snow.
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"The possible transport disruptions caused by extreme weather are likely to play a role in the current market situation, as coal deliveries will be impacted significantly and coal stocks may increase as a result," said one coking plant source in Shanxi.
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He noted the key point to coking coal miners' resolution in refusing to lower prices is low stock pressure and plenty of pre-sold orders, which assured them of maintaining present price level for longer.
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On December 8, the CCI Index for Shanxi low-sulfur primary coking coal remained stable at 2,518 yuan/t, ex-washplant with VAT; while mid- and high-sulfur coal grade indexes were at 2,350 yuan/t and 2,333 yuan/t, respectively, both flat on the day.
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The overall trading activities cooled down this week, and there were some online auctions that failed or settled lower due to a lack of bids.
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On December 8, one auction of 5,000 tonnes of low-sulfur primary coking coal in Jinzhong, Shanxi was started at 2,400 yuan/t and concluded lower at 2,415-2,419 yuan/t, down from 2,415-2,432 yuan/t on December 5.
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In the imported seaborne coal market, Australian low-vol hard coking coal was offered stable at about 2,881 yuan/t CFR China with VAT, still higher than domestic prices, partly supported by supply interruptions caused by extreme weather in the international market, which are expected to make some end-buyers and traders to postpone purchases.
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However, spot cargoes of Russian low-ash K4 coal at Jingtang port were offered 20-30 yuan/t lower this week at around 2,350-2,380 yuan/t ex-stock with VAT, and Russian Inagli was offered at 1,800-1,850 yuan/t, falling 30-70 yuan/t from a week ago.
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This mainly came as the downstream sector switched to a prudent buying approach after seeing prices at China's production regions showed signs of fluctuation, sources noted.
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China's coking coal market are seeing demand slowing down as loss-making coking plants retreated to a more cautious buying stance after boosting stockpiles to rational levels."We have nearly finished 

China's coking coal demand slows; seaborne market falters

Indonesia's coal exports dropped from the previous month in November, but still saw a year-on-year increase for the second straight month, showed cargo-tracking data from Kpler.
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The country exported 45.34 million tonnes of coal in November, rising 9.68% from 41.34 million tonnes a year ago yet down 6.5% from 48.50 million tonnes in October, Kpler's data showed.
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<img src="https://fenwei-web-pro-1306768303.cos.ap-beijing.myqcloud.com/news/2023_image_11199244831702027960046_1733057001021984768.png" width="476" height="297" />
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In the first eleven months of 2023, Indonesia exported 464 million tonnes of coal, up 10.88% on the year.
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Indonesia exported 43.38 million tonnes of coal to Asian countries in November, up 6.64% from the previous year but falling 9.09% from a month ago, and accounting for 95.7% of total exports.
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China remained the top destination for Indonesian coal in November with the shipment at 18.53 million tonnes, dropping 11.32% from a year earlier and 3.66% from October.
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<img src="https://fenwei-web-pro-1306768303.cos.ap-beijing.myqcloud.com/news/2023_image_62556711541702027960050_1733057002381082624.png" width="498" height="299" />
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November exports to India jumped 60.92% year on year but decreased 29.6% month on month to 9.09 million tonnes. Exports to the Philippines increased 24.63% from a year ago and 2.96% from the month prior to 3.32 million tonnes.
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During the month, exports to South Korea fell 20.01% from a year earlier but rose 5.3% from October to 2.18 million tonnes. Shipments to Malaysia grew 11.2% on the year and 26.71% on the month to 2.04 million tonnes.
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Indonesia's coal exports dropped from the previous month in November, but still saw a year-on-year increase for the second straight month, showed cargo-tracking data from Kpler.The country exported 45

Indonesia Nov coal exports down 6.5% MoM but up nearly 10% YoY, Kpler

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China's portside thermal coal market has stayed stable in recent days, due to subdued demand. However, traders are anticipating a potential turnaround over the weekend as temperatures are predicted to
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<a href="https://www.sxcoal.com/en/news/detail/1732669287152463873" target="_blank" rel="noopener">China to further enhance coal reserve system with new draft on mine capacity reserve</a>
China has been working to enhance its coal reserve system in an effort to secure supplies and stabilize prices, and the newly released draft on building capacity reserve at qualified coal mines would
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China's coking coal market is poised to reach a plateau, with price rally waning alongside the growing prudence in procurements from downstream users and middlemen.On December 7, the CCI indexes for S
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China's coal imports extended the year-on-year growth in November to reach the third-highest level in history, the latest customs data showed.China imported 43.51 million tonnes of coal over November,
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China's coal supply and demand is expected to remain stable next year, according to Tang Shemin, an official of the National Development and Reform Commission's Economic Operation Department. Speaking
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<a href="https://www.sxcoal.com/en/news/detail/1732316820784410625" target="_blank" rel="noopener">400 Mt coal contracts signed on 1st day of 2024 China coal trade fair</a>
Thirty-two major coal producers and end users signed medium- and long-term coal supply contracts totaling 400 million tonnes or so on the opening day of the 2024 China Coal Trade Conference.Organized
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<a href="https://www.sxcoal.com/en/news/detail/1732277953149251586" target="_blank" rel="noopener">China aims to establish coal production capacity reserve system by 2027</a>
China plans to preliminarily set up a coal production capacity reserve system by 2027, aiming to stabilize prices and enhance supply of the material, according to a draft plan issued by the National D
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<a href="https://www.sxcoal.com/en/news/detail/1732241713074950146" target="_blank" rel="noopener">Daqin Jan-Nov coal shipment hits 4-yr high</a>
Daqin railway, a major channel shipping coal from production areas to transfer ports in China, delivered 37.66 million tonnes of coal in November, soaring 64.45% on the year, according to operator Daq
&nbsp;
<a href="https://www.sxcoal.com/en/news/detail/1731504190824534018" target="_blank" rel="noopener">QHD port coal stocks down mildly as outflows rebound</a>
Coal inventory at China's major transshipment port of Qinhuangdao dropped moderately last week, as cold air pulled up outflows to exceed inflows.Qinhuangdao's coal stocks stood at 6.15 million tonnes
&nbsp;
<a href="https://www.sxcoal.com/en/news/detail/1731848732053970946" target="_blank" rel="noopener">China delivers promise of stopping building new coal-fired power plants aboard</a>
China has completely stopped building new coal-fired power plants aboard, said Vice Premier Ding Xuexiang during the UN COP28 in Dubai, a move exhibits the second-largest economy's responsibility to c
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China's thermal coal market remains stable; turning point may emergeChina's portside thermal coal market has stayed stable in recent days, due to subdued demand. However, traders are anticipating a po

Weekly China coal market news summary (Dec 4-Dec 8)

Indonesia exported 45.34 Mt of coal in Nov, rising 9.68% YoY yet down 6.5% MoM, Kpler's cargo tracking data showed. In the first eleven months, the country exported 464 Mt of coal, up 10.88% YoY.

<a href="https://www.sxcoal.com/en/news/detail/1732306480586272769" target="_blank" rel="noopener">Int'l thermal coal prices rebound on rising freight rates and supply tightness</a>
Global thermal coal market generally bounced back during the past week on the back of growing international seaborne shipping costs and expected supply strain of high-CV thermal coal from Australia an
&nbsp;
<a href="https://www.sxcoal.com/en/news/detail/1732655226104819713" target="_blank" rel="noopener">Russia to overtake Australia as key coal supplier to India</a>
Russia is set to surpass Australia as a significant coal exporter to India, with plans to enhance coal shipments by 400% in the current year compared to 2022, local media reported.India is witnessing
&nbsp;
<a href="https://www.sxcoal.com/en/news/detail/1732632425708892162" target="_blank" rel="noopener">Newcastle port Nov coal exports up over 30% YoY</a>
Newcastle port, the world's largest coal port located in Australia's New South Wales, saw coal exports register a year-on-year growth of over 30% in November despite a marginal decline from a month ag
&nbsp;
<a href="https://www.sxcoal.com/en/news/detail/1732966478842032130" target="_blank" rel="noopener">Russian Jan-Oct coal supply rises 2.7 YoY</a>
Russian coal supplies to domestic market and exported countries totaled 329 million tonnes in January-October 2023, an increase of 8.7 million tonnes or 2.7% year on year, data showed.Coal delivery to
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Coal exports from Australia increased 4.27% month on month and 14.43% year on year to 31.62 million tonnes in November, marking the third consecutive month of growth, according to cargo tracking data
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Indonesian coal producer Adaro Energy intended to diversify its business development plans by shifting its core business from thermal coal to wider scope by 2030, foreign media reported.Adaro Energy c
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<a href="https://www.sxcoal.com/en/news/detail/1731876506697310209" target="_blank" rel="noopener">Indonesia accelerates retirement of 660-MW coal power plant</a>
Indonesia is expediting the closure of a 660-MW coal-fired power plant nearly seven years ahead of schedule, media reported, citing an agreement reached by the Indonesian government, the Asian Develop
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Int'l thermal coal prices rebound on rising freight rates and supply tightnessGlobal thermal coal market generally bounced back during the past week on the back of growing international seaborne shipp

Weekly global coal market news summary (Dec 4-Dec 8)

Shaanxi Coal Industry Co., Ltd., a listed company of Shaanxi Coal and Chemical Industry Group, produced 12.63 million tonnes of coal in November, falling 10.73% from the year prior, the company said in a statement on December 7.
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November's output hit the lowest since February 2022. While the company did not elaborate on the production decline, the aftermath of recent accidents could be the core reason behind it.
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Its flagship Zhangjiamao coal mine, located in Yulin city, reported one death caused by a roof collapse on November 1. This resulted in a downgrade in safety rating by the government, although it can be found nowhere whether the mine suspended operations because of this.
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But one thing is for sure that the local safety watchdog has since then strengthened supervision and taken a range of measures to prevent more accidents from happening.
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Zhangjiamao, covering 51.98 square kilometers with 865 million tonnes of geological reserves and 543 million tonnes of recoverable reserves, plays a significant role in local supply. The coal mine has been built at a large and modern demonstration, with approved capacity of 11 million tonnes per annum, deemed with low natural risks of gas blast and rock burst.
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Market traders noted the mine had been absent from online auctions since November 1, and finally came back on December 6. This suggested the mine's operations could be shut for a month.
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This accident underscored safety problems that Zhangjiamao has long ignored. Since the beginning of this year, it had been punished four times for safety issues and environmental protection issues once, with a total fine amounting to about 6.54 million yuan, needless to say nearly one million yuan for illegal overproduction.
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Shaanxi Coal Industry Co., Ltd., a listed company of Shaanxi Coal and Chemical Industry Group, produced 12.63 million tonnes of coal in November, falling 10.73% from the year prior, the company said i

Shaanxi Coal Nov production slumps on accident impact

The Tai'an port logistics park owned by Yankuang Energy Group commenced operation officially on December 5, according to parent Shandong Energy Group.
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The project is a significant endeavor for Shandong province and Shandong Energy Group. It aims to establish a state-level intelligent and modern demonstration logistics park that combines road, railway, and waterborne transportation modes.
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This initiative aligns with the national new strategy for energy security and aims to enhance coal reserve capacity. It also serves as a key project for Shandong Energy Group to optimize energy layout.
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Starting construction on March 1, 2022, the park will be built in two phases, covering a total area of 1,800 mu and with an estimated investment of more than 3 billion yuan ($419.4 million).
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The phase-one project, including five 1000 t-level berths and 23.4 km of dedicated rail line, has been completed, capable for 500,000 tonnes of static coal storage and annual cargo throughput of 32 million tonnes.
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The phase-two project, which is under construction, will help boost the park's static coal reserve capacity to 2 million tonnes and annual cargo turnover to 60 million tonnes.
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It will connect Shandong province with Shanxi, Shaanxi and Inner Mongolia's major eastbound energy transport channels, contributing to energy supply and security in China.
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The Tai'an port logistics park owned by Yankuang Energy Group commenced operation officially on December 5, according to parent Shandong Energy Group.The project is a significant endeavor for Shandong

Yankuang Energy's Tai'an logistics park starts operation

China's coal supply and demand is expected to remain stable next year, according to Tang Shemin, an official of the National Development and Reform Commission's Economic Operation Department.
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Speaking on the sidelines of the 2024 National Coal Trade Conference, Tang said domestic coal production capacity will be fully utilized, with overall output forecast to remain steady.
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Rapid growth in new energy is accelerating the replacement of coal-fired power, Tang noted.
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However, stable economic growth backed by governmental incentives is likely to drive higher-than-expected coal consumption in non-power industries, which bolsters power coal demand to remain flat overall compared with this year, he said.
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If coal imports are not significantly impacted next year, China's coal supply will be guaranteed, Tang added. He called for upstream and downstream coal enterprises to fully implement supply tasks and improve contract quality and fulfillment.
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The NDRC official stressed that ensuring energy security is critically important for the national development and people's livelihood. Authorities will continue to boost coal production by tapping new capacity to maintain ample supply.
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"Coordinated efforts will be made to fulfill 2023 long-term electricity coal contracts and sign deals for 2024," he said.
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Tang demanded coal companies to stabilize and increase output in the premise of safety, and power generators to diversify and ensure stable fuel supply. All efforts must be made to safeguard winter heating for the public, he stressed.
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The official also praised achievements gained this year, not only guaranteeing ample supply but also maintaining coal prices largely range-bound in a controllable range.
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This year, the price volatility has been much milder than in the past two years, mainly as the government sticks to policies and measures to support supply, including expanding new capacity, building reserves and revoking import constraints.
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Despite extending high prices at the beginning of the year, at around 1,200 yuan/t FOB with VAT for 5,500 Kcal/kg NAR coal at northern ports, the prices gradually declined to the year low of 764 yuan/t on June 12 before gradually climbing to 1,035 yuan/t on December 11 amid pre-winter restocking. It finally dropped again and stabilized at 930-950 yuan/t amid weak demand and stable supply.
&nbsp;

China's coal supply and demand is expected to remain stable next year, according to Tang Shemin, an official of the National Development and Reform Commission's Economic Operation Department.Speaking 

NDRC: China's coal supply and demand expected to remain stable in 2024

The US's coal output over the week ending December 2 was estimated at 11.62 million short tons (10.55 million tonnes), up 11.13% week on week and 8.47% year on year, showed data from the Energy Information Administration on December 7.
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Coal production in Wyoming and Montana combined was estimated at 5.32 million short tons, up 13.74% from a week ago and 3.2% from the previous year.
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Illinois's coal output was estimated at 726,300 short tons, 5.79% higher than the week-ago level and up 28.16% on the year, while Appalachian coal production was estimated at 3.34 million short tons, rising 9.84% from the week prior and 21.52% from a year ago.
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During the first 48 weeks of 2023, US coal output totaled 538 million short tons, a 2.6% fall from 552 million short tons in 2022, data showed.
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U.S. rail coal shipments were 68,492 rail wagons, increasing 7,123 from a week earlier and 6,752 from the preceding year. The year-to-date rail coal shipments totaled 3.17 million wagons, a small 0.4% decline year on year.
&nbsp;

The US's coal output over the week ending December 2 was estimated at 11.62 million short tons (10.55 million tonnes), up 11.13% week on week and 8.47% year on year, showed data from the Energy Inform

US coal output estimated to rise 11.13% in wk ending Dec 2

Thermal coal
Production area Thermal coal supply contracted as a few mines cut or halted production around the end of the year. Most coal miners focused on shipments to term-contract buyers. Metallurgical and chemical plants purchased on a need-to basis, while railway stations and washing plants were prudent in purchases. Given ordinary sales, most mines reported downside pressure on coal prices. Several mines with better coal quality and competitive prices raised prices further after seeing improved sales. Miners noted coal prices are likely to keep fluctuating amid both weak supply and demand.
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Northern port Inquiries at northern ports increased slightly, especially for mid-CV coal. Traders remained steadfast in offer prices amid supply disruptions and high transportation costs. After a period of flatness, demand picked up marginally and participants reckoned prices will stay range-bound in the near term.
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Import market Prices for imported Indonesian coal prices were stable and shipping rates dropped by 1$/t. Supramax 3,800 Kcal/kg NAR coal prices were around $61/t FOB. The near-term price trend remained unclear. Some importers estimated coal imports in 2024 are likely to increase, while term-contract volume could decline.
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Coking coal
With rebounded coking coal and coke futures, market sentiment was bolstered again. This, combined with persistent supply disruptions, continued to strain coking coal supply and sustained high prices, especially for backbone coal grades. On Dec 7, online auctions' hammer prices for low-S primary coking coal (S 0.5%, A 12.5%) in Luliang, Shanxi rose to 2,540 yuan/t. Most miners gave robust offers amid no obvious inventory pressure. However, traders still adopted a cautious approach in purchases given their concerns over current too high prices, which resulted in mild drop of prices of several coal grades.
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Australian low-vol hard coking coal was offered stable at about 2,881 yuan/t CFR China with VAT, still higher than domestic prices, thanks to continued support from supply interruptions caused by extreme weather in the international market, which are expected to make some end-buyers and traders to postpone purchases.
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Met coke
Steel mills' production enthusiasm gradually waned since steel products destocking eased amid slack season. The seasonal maintenance at some steelmakers dragged down capacity utilization rates. But their buying strength for coke is expected to remain strong given rigid demand and low coke stocks, and most mills continued active purchases. Coke deliveries to steelmakers improved in recent days since traders and coking plants both accelerated shipments due to concerns over high prices.
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Thermal coalProduction area Thermal coal supply contracted as a few mines cut or halted production around the end of the year. Most coal miners focused on shipments to term-contract buyers. Metallurgi

China Coal Daily Track (Dec 8)

On Dec 8, 2023, China's met coke futures main contract J2405 on the Dalian Commodities Exchange opened at 2,683 yuan/t and closed at 2,666 yuan/t,  up 21.5 yuan/t DoD. The intraday high was 2,701.5 yuan/t and the intraday low at 2,646.5 yuan/t.

On Dec 8, 2023, China's coking coal futures main contract JM2405 on the Dalian Commodities Exchange opened at 2,027 yuan/t and closed at 1,990.5 yuan/t,   down 56.5 yuan/t DoD. The intraday high was 2,038 yuan/t and the intraday low at 1,965.5 yuan/t.

On Dec 8, 2023, China's iron ore futures on the Dalian Commodities Exchange opened at 950.5 yuan/t and closed at 963.5 yuan/t,  up 22.5 yuan/t DoD. The intraday high was 975.5 yuan/t and the intraday low at 941.5 yuan/t.

Check out latest updates on the Chinese futures market for coking coal, coke, iron ore and others at close.
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<img style="display: block; margin-left: auto; margin-right: auto;" src="https://fenwei-web-pro-1306768303.cos.ap-beijing.myqcloud.com/news/2023_下午En_1733020462116196352.png" alt="" width="730" height="671" />

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

China futures market updates at close (Dec 8)

The Purchasing Managers' Index (PMI) for the steel sector in northern China's Hebei province rebounded by 5.6 percentage points (pps) month on month to 50.7 in November this year, as data from the province's Metallurgical Industry Association showed.
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The November PMI index snapped a three-month consecutive decline in the province and rebounded to expansion zone again.
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In November, the new order index for Hebei's steel sector stood at 50, up 7.5 pps month on month. Steel products prices were quite robust through the whole month, and market sentiment was bolstered further by increased futures prices.
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In the month, the new export order index was at 50, up by 9.1 pps, stimulated by multiple favorable factors in the global market, such as the Federal Reserves' easing on rate increase and warming Sino-American relation, which provided support to steel products exports.
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The production index was at 53.5, jumping 15.4 pps. Steelmakers' profit margins improved and they became more active in production.
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At the same time, the inventory index for finished steel in Hebei rose 63.6 pps to 79.1 in November, while the inventory index for raw materials dropped 10.4 pps to 38.4.
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China has launched a series of economic stimulus policies to revive the property industry, cheering up market sentiment.&nbsp;This, combined with contracted supply and stronger cost support, bolstered up steel products prices.
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The Purchasing Managers' Index (PMI) for the steel sector in northern China's Hebei province rebounded by 5.6 percentage points (pps) month on month to 50.7 in November this year, as data from the pro

Steel sector PMI in China's Hebei up 5.6 to 50.7 in Nov

The PMI index of the steel sector in China's Hebei province, the country's top one coal hub, rebounded by 5.6 pps MoM to 50.7 in Nov this year, as data from the province's Metallurgical Industry Association showed.

Germany's electricity generation from renewable energy reached 56.7 TWh in the third quarter of 2023, increasing 8.1% compared with the same period in 2022, which accounted for 60.2% of the total power generation, according to preliminary data released by Federal Statistics Office Destatis.
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Power plants in Germany totally delivered 94.2 TWh of electricity to the grid over July-September this year, down 20.3% from 118.2 TWh in the third quarter of 2022, which may be the result of lower electricity demand and increased electricity imports, Destatis said.
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Power generation from wind energy rose 16.2% year on year to 23 TWh in the same period, representing 40.6% of the total renewable output. That of solar energy accounted for 35.6% of the total to 20.2 TWh, data showed.
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And the biogas generation fell to 6.5 TWh in the third quarter this year, accounting for 11.5% of the country's total renewable output. Hydropower generation increased by 4.1 TWh in the same period, representing 7.23% of the total renewable.
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Power generation from conventional energy sources fell to 37.5 TWh in the third quarter this year, down 42.9% year on year, representing 39.8% of total electricity production, data showed.
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Meanwhile, the accumulative volume of electricity imported into Germany surged by 78.6% year on year to 23.1 TWh over July-September, mainly from Denmark, France and Netherlands. While the exports fell by 38.2% year on year to 9.9 TWh in the same period, resulting in 13.2 TWh of import surplus, Destatis said.
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Germany's electricity generation from renewable energy reached 56.7 TWh in the third quarter of 2023, increasing 8.1% compared with the same period in 2022, which accounted for 60.2% of the total powe

Germany Q3 power generation from renewables up 8.1% YoY

Private conglomerate Xinjiang Guanghui Industry Investment Group Co., Ltd. has signed a framework agreement on coal supply with state-owned power producer China Huaneng Group on the sidelines of the 2024 National Coal Trade Conference.
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Under the agreement, Guanghui will supply a total 10.9 million tonnes of coal in 2024 to Huaneng's power plants in Gansu, Shandong and northern China ports, according to a statement from Guanghui's official WeChat account.
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Guanghui said signing long-term thermal coal contracts helps ensure energy security and stabilize prices, which are important for the healthy development across upstream and downstream industries.
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Going forward, Guanghui plans to futher utilize its coal resources and integrated capabilities in production, transportation, storage and sales. The company aims to enhance collaboration with market players in supply and other sectors.
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Xinjiang Guanghui is a conglomerate engaged in energy, auto services, real estate and logistics.
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During the coal trade fair in Tangshan, Hebei province, 32 major coal miners and end users signed medium- and long-term coal contracts for 2024, with the volume totaling around 400 million tonnes. The conference is set to conclude on December 8.
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Private conglomerate Xinjiang Guanghui Industry Investment Group Co., Ltd. has signed a framework agreement on coal supply with state-owned power producer China Huaneng Group on the sidelines of the 2

Xinjiang Guanghui signs coal supply deal with Huaneng

资讯导航 - 英

China's coal imports extended the year-on-year growth in November to reach the third-highest level in history, the latest customs data showed.China imported 43.51 million tonnes of coal over November,

China Nov coal imports climb to 3rd highest in history

Global thermal coal market generally bounced back during the past week on the back of growing international seaborne shipping costs and expected supply strain of high-CV thermal coal from Australia an

Int'l thermal coal prices rebound on rising freight rates and supply tightness

China plans to preliminarily set up a coal production capacity reserve system by 2027, aiming to stabilize prices and enhance supply of the material, according to a draft plan issued by the National D

China aims to establish coal production capacity reserve system by 2027

Daqin railway, a major channel shipping coal from production areas to transfer ports in China, delivered 37.66 million tonnes of coal in November, soaring 64.45% on the year, according to operator Daq

Daqin Jan-Nov coal shipment hits 4-yr high

South Africa's coal exports rebounded slightly in October, but still below the year-ago level of 6 million tonnes. India took over half of coal exports from South Africa in October.The country exporte

Review: S Africa delivers over half coal to India in Oct

China's coastal coal freight rates extended the increase earlier last week but moved downward later the week, ending a four-week straight rise. Overall, the freight rates remained at a high level.The 

China's coastal coal freight rates in reversed V shape yet remain high

Thermal coal prices faced downside pressure in northern China's major production areas, as a leading miner's cut on its buy prices for third-party coal added uncertainty to the market even as the over

Thermal coal prices under pressure in China's production areas; stalemate persists at N ports

China's coal imports from Australia recovered this year following the lifting of a two-year-plus unofficial ban on Australian coal. This, combined with still resilient receipts from Russia, contribute

High-CV coal shipments to China squeeze Indonesian coal

Despite the reopening of Chinese market to Australian coking coal this year, Chinese buyers have showed subdued import interest from the country, due to higher-than-average price levels. However, will

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