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China coking coal market likely to further stabilize in Jun
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China coking coal market likely to further stabilize in Jun
Keyword:
Publish time:
28
th
May, 2015
Source:
www.cnchemicals.com
Information collection and data processing: CCM For more information, please
contact us
China’s coking
coal
market is likely to be stable in June, as most big miners may keep prices unchanged amid low stocks and normal sales.One large coking coal miner in Hebei believed that prices may get stabilized next month, adding their stock pressure was not huge."Our sales pressure has eased recently, and chances for price stabilization in June are deemed high," said a Shanxi-based large miner.And some signs of improvement have been seen at the domestic coking coal market, as mines kept cutting output to battle the sluggish demand.One local source said the price of Liulin low-sulphur coking coal was adjusted up by 10 yuan/t for some small steel mills, but it wasn’t changed for big ones. "We only anticipate steady prices and favorable sales, while having no confidence in the market upturn in the near future," added the source.Small local steel mills found it hard to further press down coking coal purchase prices, market sources said.One steel mill source said the ex-washplant price of Shanxi fat coal with 1.7% sulphur was 480 yuan/t with VAT, and this price level may continue for next few weeks.One Luliang-based miner said the ex-washplant price of primary coking coal with 1.0% sulphur was 590 yuan/t, and another miner from Luliang offered fat coal with 1.8% sulphur at 410 yuan/t.However, some steel mills in South China still intended to press down purchase prices for locally-produced coking coal in June, and some steel mills in North China also planned a 10-20 yuan/t price cut.One steel mill said it has planned to reduce purchase price by around 20 yuan/t, but it’s hard for miners to accept and the price negotiation is under way.Another steel mill source said they may consider increasing purchase of domestic coking coal, if the price spread with imported material further shrink as import prices rise.As of May 27, The CCI Met Shanxi Premium Low Vol index assessed ex-washplant price of Liulin Premium low-sulphur primary coking coal at 655 yuan/t with VAT, up 5 yuan/t on week; while CCI Met Shanxi High Sulfur Low Vol index was at 485 yuan/t, unchanged from a week ago.The CCI Met North China Fat Coal index assessed the delivered price of high-fluidity, mid-volatile coking coal delivered to Tangshan at 740 yuan/t with VAT, the same as the week before.
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