Total coking coal stocks at 230 independent coking plants in China reached a near eleven-month high of 16.4 million tonnes (MnT) as of Thursday, January 9, after growing another 356,600 tonnes or 2.2% week-on-week, according to the latest survey conducted by Mysteel — a China-centric insight and global metal markets intelligence providing company.
Survey respondents stated that coal replenishment among the coke makers had stayed buoyant over the last week (January 3-9) but the makers had eased back on consumption. The stocks were able to sustain those plants for 19.3 days of operation on average, 0.7 day higher on week and also an eleven-month high, the survey showed.
Meanwhile, coke production at the 230 coking plants over the period dropped by 10,600 tonnes/day week-on-week to 641,300 tonnes/day, affected by the tougher production restrictions in place in North China’s Shanxi province during the period.
Reportedly this week, major coking coal users remained active in requesting coal deliveries to their plants. However, the snow in North and Northwest China over January 5-7 had slowed coal transportation to coke producers and steelmakers in Hebei in North China and to those in Shandong in East China, particularly from the key coal mining centres in Shanxi.
Moreover, weather forecasts pointed to more snowfall on North China including Shanxi from January 9. Consequently, several stretches of the provincial highway to have been blocked again as a safety measure.
On January 9, coking coal stocks at 110 Chinese steel plants had increased as well, climbing by 141,500 tonnes or 1.6% week-on-week to reach a five-month high of 9 million tonnes. The inventory would sustain the mills for an extra 0.3 day on week at 17.9 days, according to Mysteel’s data.
As for coal supply, processed coking coal output at 110 Chinese wash plants had increased too, rising by 14,600 tonnes/day week-on-week to 636,100 tonnes/day over the December 31-January 7 period. However, the slowdown in deliveries meant that processed coal stocks at those plants swelled by 242,300 tonnes or 12.6% week-on-week to reach 2.2 million tonnes.
“Because of the heavy snow in Shanxi, transportation of the contracted coking coal from some wash plants was slower than scheduled, even by two or three days,” observed a Shanghai-based industry watcher. “Coal stocks at several wash plants were almost full (in the middle of the week),” he added.
Over January 3-9, Mysteel’s composite price for domestic coking coal was flat week-on-week at USD 162.5/tonne (Yuan 1,126.5/tonne), nearly a two-month high.
Note: This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
PRICE ASSESSMENTS
Chinese metallurgical coke export prices for the 64% CSR and the 62% CSR grades are assessed at around USD 290.00/MT and USD 277.00/MT FOB China respectively.
Indian metallurgical coke import prices for the 64% CSR and the 62% CSR grades amount to USD 281.00/MT and USD 264.00/MT respectively on CNF India basis.
Currently, India’s domestically produced metallurgical coke prices for the blast furnace grade are hovering at around INR 24,000/MT and INR 23,750/MT in the country’s east and west coast regions respectively.
Source: CoalMint Research
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