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Shandong coking coal market to stabilize in the short run
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Shandong coking coal market to stabilize in the short run
Keyword:
Publish time:
22
nd
May, 2015
Source:
www.cnchemicals.com
Information collection and data processing: CCM For more information, please
contact us
The coking
coal
market in Eastern China’s Shandong province is likely to be stable in the short run amid improving downstream activities, with the likelihood of rebound in some areas as operations are expected to resume after environmental checks.Market sources said coking coal prices may rebound in Linyi area, as local steel mills and coking plants are expected to resume in late-May and early-June after checks by the environmental watchdog.If demand increases with the resumption of
coke
and steel plants, the market is likely to stabilize for a while, said one local miner.“Our operation is in normal, producing more output to offset decline in prices," said the miner, adding that only few miners could manage to make profit.One buyer said the price of gas coal with 0.6% sulphur was 470 yuan/t, down 20 yuan/t from two weeks ago, mainly due to miners’ discounts for buyers who purchase in a large volume. He expected the market, which has dropped almost to the bottom, to stabilize in the short run.Market sources said sales were getting better after recent price cut; low-sulphur coal sales well, as end users increased purchases under
environmental protection
pressure.The mainstream ex-washplant price of washed gas coal was 460-500 yuan/t in Jining, one major coking coal production city in Shandong, sources said.One Jining-based miner said the ex-washplant price of washed gas coal with 0.5-0.6% sulphur was 520 yuan/t with VAT, with a 20 yuan/t discount for purchase volume over 20,000 tonnes.He saw further downside risk in the short run, as steel mills like Rizhao Iron & Steel Co., may keep pressing down prices.On May 22, The CCI Met Shandong Semi-soft index assessed ex-washplant price of gas coal at 480 yuan/t with VAT, unchanged on day and on week.
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