Chinese coking coal miners lift prices further amid strong sentiment

• Stronger market sentiment supported by futures-led buying
• Restocking demand from coke producers supporting prices

Mysteel Global: Sentiment in China’s coking coal market stayed strong on March 16, with price rises recorded among more coal miners, according to Mysteel’s tracking.

On Monday, Mysteel assessed China’s national composite coking coal price at Yuan 1,255.3/tonne ($182.4/t) including the 13% VAT, up another Yuan 5.3/t from the previous session.

“Boosted by gains in the futures market last week, trading activity in the spot coking coal market had shown notable improvement,” said an analyst in North China’s Shanxi, noting that more miners in the major coal province were encouraged to lift their prices yesterday.

According to Mysteel’s tracking, 20 Shanxi-based miners raised prices for their coal products by Yuan 5-89/t yesterday, compared with the Yuan 25-193/t upward tweaks made by four miners last Friday.

Among the total, 13 price rises were recorded in Lvliang city, where a local leading group lifted prices by Yuan 20/t for all coal grades from its affiliated mines, prompting nearby miners to follow suit, according to market sources.

For example, the group had adjusted its price for Zhongyang low-sulfur washed primary coking coal (A 11%, S 0.7%, G 90) to Yuan 1,470/t EXW with VAT, up by Yuan 20/t from the previous session. Its price for Lishi washed lean coal also climbed Yuan 20/t to Yuan 1,120/t EXW with VAT.

In Wuhai city, North China’s Inner Mongolia, three miners also increased prices for washed fat coal of different specifications by Yuan 10-100/t, the tracking results showed.

“Some coking plants with low coking coal inventories had stepped up their replenishment after eyeing a week-long rise in the raw material prices,” noted a market observer, adding that thicker buying interest from coke producers also further supported coking coal prices.

According to Mysteel’s survey of 230 independent metallurgical coke plants across the country, their combined coking coal stocks had risen 2.4% on week to 8.15 million tonnes as of March 12, ending the consecutive decline over the previous three weeks.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.