Coal Market Snapshots

>>Coal production capacity cuts in China are to continue with that government emphasizing environmental concerns. In 2018, the Chinese government will eliminate 150 MnT of coal capacity, and at the same time, 30 MnT of ineffective steel capacity will also be put off-line.

Capacity cuts are on the anvil on the consumption side too. Coal-fired power plants will capacities less than 300,000 kilo watts, and those fail to meet the minimum standards, will also be closed within 2018.

In 2017, 250 MnT of coal capacity was slashed and 50 MnT of steel capacity was withdrawn.

On the other hand, the coal capacity cuts will mean more imports which will create more demand in the overseas markets—thus coal prices are expected to remain at highs during the year.

>>The Singareni Collieries Company Limited (SCCL) has posted gains in its coal production during the Apr-Feb’18 period over the corresponding period of the preceding fiscal.

According to the latest information received, the company produced 54.6 MnT of coal during the Apr-Feb’18 period; recording a 1% rise over the production of 54.1 MnT in the same period in the last fiscal.

In FY17, SCCL produced 61.34 MnT of coal, according to the available data.

>>There was a slight increment in the stocks of Met Coke at the major Chinese ports. That was mainly due to the recurrence of business activity post the Lunar Year Holidays. The following is the latest status:

Source: CoalMint Research