HomeProduct Complimentary download China coking coal market remains weak

China coking coal market remains weak

Keyword:
Publish time: 15th May, 2015      Source: www.cnchemicals.com
Information collection and data processing:  CCM     For more information, please contact us
China’s coking coal market remained weak amid flat demand, but industry insiders said the downward room was rather limited as prices have dropped almost to the bottom.ShanxiShanxi’s coking coal market remained bleak, although supply dropped a bit with the deepening of safety checks launched by the government from May 1.One Jincheng-based miner said some local mines have closed due to stricter safety checks after an accident occurred at one mine owned by state-owned Datong Coal Mine Group, resulting in a small drop in raw coal output.But one Linfen-based miner said the impact on coal output was limited, as most of operating miners are legal, with all necessary licenses and safety facilities.One washing plant said the price of washed coal has limited space to drop further, as raw coal price was supported by tight supply presently. The price of Lingshi washed coal with 1.7% sulphur was 390 yuan/t at present.One Shandong-based buyer said the ex-washplant price of Luliang high-sulphur coal was unchanged; but the delivered cost has increased due to the rise in trucking freight.On May 14, The CCI Met Shanxi Premium Low Vol index assessed ex-washplant price of Liulin premium low-sulphur primary coking coal at 650 yuan/t with VAT, unchanged on day and on week; while CCI Met Shanxi High-sulphur Low Vol index was at 485 yuan/t with VAT, unchanged on day but down 5 yuan/t on week.HebeiOne Hebei-based buyer said the price of Tangshan fat coal was cut 20 yuan/t, with a 5 yuan/t discount for purchasing 5,000 tonnes and more; while discounts were also offered to primary coking coal if the purchase volume exceeds 100,000 tonnes.Another Hebei-based buyer said the price of primary coking coal remained unchanged in early-May and prices have almost dropped to the bottom; although few large coking enterprises reduced purchase prices, most producers refused to cut prices any more.A third Hebei-based buyer said transactions on imported increased recently as restocking demand improved; downside room in domestic market would be rather limited as prices have almost dropped to the bottom.The CCI Met North China Fat Coal index assessed the delivered price of high-fluidity, mid-volatile coking coal delivered to Tangshan at 745 yuan/t with VAT, unchanged on day but down 5 yuan/t from the week before.ShandongShandong’s coking coal market was also on the downward trend, with some large producers cut washed gas coal price by 30-40 yuan/t to maintain sales amid high stocks.One Jining-based producer cut the free-on-rail price of its washed gas coal with 0.8% sulphur by 45 yuan/t to 525 yuan/t in May, VAT included. It said washed gas coal demand from Shandong and neighboring regions dropped, but it’s still hard to maintain sales due to increased output.One source with Yanzhou Coal Mining Co., said washed gas coal was sold at 500 yuan/t inside the province, 480 yuan/t outside the province and 465 yuan/t for cash payment. It said sales of washed coals were roughly stable presently, with prices being reduced by 40 yuan/t.One Shandong-based large producer is now offering washed gas coal at 500 yuan/t, ex-washplant basis, for purchase volume over 20,000 tonnes. It has limited output given the sluggish market.One mine in Tengzhou was only producing at 20-30% of its normal output, supplying two self-owned coking plants.The CCI Met Shandong Semi-soft index assessed ex-washplant price of gas coal at 490 yuan/t with VAT on May 14, unchanged on day and down 5 yuan/t on week.