China's coking coal market is still on the downside as Aug begins, with many miners further lowering their offer prices in an attempt to stimulate sales amid sluggish demand from downstream coke and steel makers.
In top production base of Shanxi province, Shanxi Coking coal group once again cut prices by 80-150 yuan/t for its coking coal products sold by both road and rail in Aug as compared with the month before, one company insider told. Buyers would enjoy more discounts based on the quantities they actually buy, the insider said.
Meanwhile, slack demand further forced miners in nearly all of Shanxi's production areas to lower coking coal prices by 50-100 yuan/t last week (Aug 6-12), some higher even near to 150-180 yuan/t.
In neighboring Hebei province, decline in coking coal prices further extended in the week ended Aug 12, averaging 30-50 yuan/t, after falling 70-100 yuan/t in some areas a week ago. Given the massive maintenance in steel mills, local sources say the price is still likely to go down.
In northeastern province of Heilongjiang, Longmay Group also adjusted down its coking coal price, giving discounts on the basis of coke and steel makers' purchase quantities, payback and contract honoring. Longmay could have cut primary coking coal and fat coal prices by 100 yuan/t, 1/3 coking coal 80 yuan/t and gas coal 30 yuan/t. Following the lead, local miners would lower their prices basically to the same extent, local traders noted.
Source: CCR
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