- China’s coking coal prices rose on restocking, supply tightening signals
- Coke producers announced hikes, optimism strong before holidays
Mysteel Global: China’s coking coal market maintained firm upward momentum on 18 September, supported by buyers’ ongoing restocking appetite amid an optimistic near-term outlook. On Thursday, Mysteel assessed national composite coking coal prices at RMB 1,200.6/tonne (t) ($168.8/t), including 13% VAT, up by RMB 4.7/t from the previous session.
Coking coal miners in North China’s Shanxi province generally raised their offers by RMB 30-100/t this week amid revived trading activity and declining inventories. Some mines highlighted tight supply of met coal, with some even receiving pre-sale orders, Mysteel noted.
Specifically, offers for some blending coal varieties in Changzhi, including meagre coal and meagre-lean coal, were lifted by RMB 10-30/t yesterday, driven by brisk sales at mining sites, sources said.
Coal auctions, however, cooled slightly following large trading in the previous days. Offered coking coal volumes at Thursday’s auctions fell 85% d-o-d to 98,000 t, with 92,000 t sold, according to Mysteel’s tracking data.
Most auctioned coal grades posted higher prices yesterday, though some deals witnessed declines. For example, some high-sulphur primary coking coal in Linshi, Jinzhong city of Shanxi, rose RMB 42/t from the last session to RMB 1,123/t, while prices of mid-sulphur primary coking coal in Liulin, Lvliang city, fell RMB 77/t d-o-d to RMB 1,160/t, both on an EXW basis with VAT.
Coal wash plants in Wuhai city raised their offers by RMB 40-70/t for washed fat coal yesterday, following a RMB 70-80/t hike by a local leading miner at auction. Continued environmental inspections in the city have limited local raw coal availability, lifting processing costs and supporting washed coal prices, sources said.
China’s coking coal supply showed more signs of tightening, with sporadic mine suspensions in Shanxi and several Inner Mongolia mines halted for exceeding 110% of their licensed capacities, according to sources.
Market players remained largely optimistic about the coking coal market for the remainder of September, citing anticipated restocking ahead of China’s National Day holiday over 1-8 October and a firming coke market.
A major coke producer in Inner Mongolia announced a RMB 55/t price increase for metallurgical coke yesterday, effective next Tuesday, signalling a possible overall price hike across the market in the near term.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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