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China coking coal prices down in Mar on weak demand

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Publish time: 9th March, 2015      Source: www.cnchemicals.com
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Coking coal prices have dropped in China’s major production bases since March, as producers responded to continued weak demand after the Lunar New Year holidays, market sources said.Shandong-based Yankuang Group Co., Ltd. reduced its coking coal prices by 20-30 yuan/t, while maintaining the same discounts from the month before, one local source confirmed. It is now offering a 10 yuan/t discount for key customers, as well as 10 yuan/t and 5 yuan/t discount for those fulfilling 90% and 80-90% of monthly contracts.While other big miners are yet to finalize their price adjustments, the source said local miners have also cut their washed gas coal and 1/3 coking coal prices by around 20-30 yuan/t.Most of the private coal washing plants in the eastern province may not start operation until March 21, market sources said.Shanxi Coking Coal Group Co., Ltd, China’s largest metallurgical coal producer, has not unveiled pricing policy for March sales, but end user sources said the producer may want to keep prices steady in March.One Shandong-based producer said the price of lean coal, one main coking coal blend, from Changzhi in Shanxi was reduced by 20-30 yuan/t; the delivered price of primary coking coal from Luliang was still at 760 yuan/t, but may drop in the short run.One Hebei-based producer said the purchase price for Luliang primary coking coal was unchanged after a 10 yuan/t cut before the Lunar New Year; most coal washing plants haven’t started operation.One Linfen-based miner said he kept the same FOB price as the holidays before at 650 yuan/t for 1/3 coking coal; but customers are asking for price cut.Another miner from Linfen has reduced low-sulphur primary coking coal by 20 yuan/t amid price cut requirement from downstream users.