Coking coal prices were largely stable in China’s major producing areas. While market demand has been quiet in the last week of December, some deals were heard at slightly varied rates.
On December 27, Fenwei CCI Index for Shanxi low-sulfur primary coking coal stood at 2,552 yuan/t, ex-washplant with VAT, unchanged compared with the preceding day; the index of Shanxi high-sulfur primary coking coal was at 2,233 yuan/t, also steady from the day before.
While prices of most mines remained steady, a few mines raised prices partly due to regional supply shortfalls as the local supply has yet to recover from Omicron infections or partly because of lagged price hikes. Meanwhile, some miners continued to make downward corrections from high price levels, Sxcoal learned.
One Changzhi-based coal mine in Shanxi put 5,000 tonnes of low-sulfur lean coking coal (S 0.5%, G 65-75) for auction on December 27 with the starting price rebounding 100 yuan/t from December 15 to 2,500 yuan/t, and all was settled at 2,665 yuan/t, rising 85-90 yuan/t from the previous level and up 500-505 yuan/t compared with a low in early November.
On the same day, an auction of 20,000 tonnes of high-sulfur primary coking coal (S 0.5%, G 65-75) in Luliang of Shanxi was started at 1,830 yuan/t, rising 50 yuan/t from December 20, but the settlement was averaged at 2,053 yuan/t, down 165 yuan/t during the same period.
Sxcoal learned coal production varied at coal mines depending on the extent of labor infections. A few mines in Luliang that were forced to suspend production due to the low attendance rate of workers have resumed production this week, while several mines were expected to restart after the New Year holiday in January.
Coke firms’ purchase enthusiasm reduced after the previous restocking or in anticipation of further coking coal price drop, resulting in slowed trading activities in the market.
In the import market, Mongolian coking coal offers fell to around 1,570 yuan/t from 1,600 yuan/t in the preceding week partly due to weak demand and a decline in long-haul transportation fees.
However, seaborne coking coal prices remained firm backed by major firms’ winter restocking.
In the global coal market, Australian FOB coking coal prices were still supported by talks on the likelihood of the removal of the unofficial coal ban in China. Some buyers were willing to bid higher to secure supply, Sxcoal learned from some trader sources.
Note: This article has been exchanged under the article exchange agreement between CoalMint and Sxcoal.
Leave a Reply