- 28.3 mnt of opencast capacity ordered for suspension
- Coking coal prices in Wuhai rise RMB 50-235/t
Mysteel Global: Raw coal supply in key coking coal-producing hubs of North China’s Inner Mongolia autonomous region has fallen clearly lately, affected by local authorities’ tighter checks targeting safety and environmental violations at mines, Mysteel’s latest survey found.
In Inner Mongolia’s Wuhai city and neighboring Qipanjing county, most of the region’s 28.3 million tonnes/year of opencast mine capacity has been ordered for suspension currently, due to local coal resource restructuring and strict “slope management” measures conducted to prevent mine slope collapses and protect the environment.
At present, only three coal mines in Wuda district, Wuhai city, are still operating as usual, Mysteel learned from sources. However, outbound coal shipments from local mines have been disrupted amid strict environmental scrutiny, they added.
Meanwhile, some mines in Qipanjing county, Ordos city, also halted coal production and dispatches after they were found operating beyond their licensed capacities in recent safety inspections, further tightening raw coal supply in the region, according to survey respondents.
The prominent supply shortfall effectively bolstered coking coal prices in Wuhai, with prices for different-quality fat coal in Wednesday’s auctions spiking Yuan 50-235/tonne ($7-33/t) from the last session, Mysteel’s latest survey showed. Sources said that neighboring coal wash firms are planning price lifts of their processed coal products as well in the days ahead.
As of Wednesday, offering prices for mid-sulfur washed fat coal (ash 12%, sulfur 1.8%) in Wuhai ranged from Yuan 1,100/t to Yuan 1,180/t, on an EXW basis and including the 13% VAT, with the upper end of the price range higher by Yuan 30/t from the previous day.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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