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China coking coal market outlook stable in the short run
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China coking coal market outlook stable in the short run
Keyword:
Publish time:
17
th
June, 2015
Source:
www.cnchemicals.com
Information collection and data processing: CCM For more information, please
contact us
China’s domestic coking
coal
market is likely to be stable in the short run, due to increased restocking demand from
coke
and steel plants, though the steel market remains bearish.Most producers reported smooth sales recently amid increased restocking demand from end users; few of them even noted tightness in supply for some coking coal grades.One Taiyuan-based miner, who recently put mine into production, said almost all the local mines were in suspension, with only two mines operating. He is now offering primary coking coal with 0.4-0.45% sulphur at 630 yuan/t, ex-washplant basis.One Hebei-based coking plant source still intended to press down coking coal prices to reduce cost and change the current loss-making dilemma. The delivered price of Shanxi’s primary coking coal with 1.0% sulphur was 680-700 yuan/t with VAT, according to the source.One Shandong-based buyer said the ex-washplant price of locally-produced washed gas coal with 0.6% sulphur was 470-475 yuan/t with VAT, up 5 yuan/t from May.He said the delivered price of Shanxi primary coking coal with 1.3% sulphur was 610 yuan/t with VAT, and anticipated further price rise in late June, due to tight supply in some Shanxi mines.Large miners were prudent in adjusting prices. China’s largest metallurgical coal producer -- Shanxi Coking Coal Group, continued to set prices separately with each buyer at varied extents of discount, due to still high stocks.One Linfen-based miner said the price of his raw coking coal was adjusted up by 10 yuan/t or so, with the ex-washplant price presently at 390-400 yuan/t, VAT included. This has been accepted by downstream washing plants and coking plants.However, industry insiders were still worried about the short-term market, as steel mills lacked purchase incentives due to great losses. The rebound in imported coking coal prices may also has limited impact on domestic market.
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