- Naadam shutdown lifts coal price hopes
- Mongolian coal stocks set to plunge
MySteel Global: Three major China-Mongolia border ports – Ganqimaodu, Ceke, and Mandula – are scheduled to close over July 11-15 for the Mongolian Naadam holiday. The five-day port closures are expected to reduce border coal stockpiles in the coming two weeks and offer temporary support to Mongolian coking coal prices.
Some Mongolian truckers have already taken early leave for the holiday, according to market sources. Coal truck traffic through Ganqimaodu, the largest gateway for Mongolian coal exports to China, is expected to drop below 600 vehicles per day later this week before coming to a full halt during the port closure.
Consequently, coal inventories at the Ganqimaodu crossing are anticipated to fall to around 3.3 million tonnes after the Naadam holiday, marking a 24.1% decline from the pre-holiday level at 4.35 million tonnes, Mysteel estimates.
The outlook for tighter availability of premium coal cargoes has intensified, prompting port-based traders to marginally lift their offers for coking coal, sources noted.
On July 6, offers for Mongolian 5# raw primary coking coal (A<18%, V 25-30, S<0.6%, G 80-85, MT<5%) moved higher to Yuan 1,200-1,230/tonne ($177-181.4/t), ex-stock Ganqimaodu with VAT, compared with a traded level of Yuan 1,165/t assessed by Mysteel on July 3.
The same day, Mongolian 4# raw primary coking coal (A<19.7%, V<25.4%, S<0.5%, G>85, MT<1.5%) was largely quoted within the range of Yuan 1,210-1,230/t, while offers for 3# primary coking coal (A<11.5%, V<28%, S<0.85%, G>75, MT<9%, CSR 60-65%) stood at Yuan 1,240-1,250/t, ex-stock Ganqimaodu inclusive of VAT.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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