Several thermal coal mines in Shaanxi, China’s third-largest coal-production heartland, started to raise offer prices on November 30, buoyed by increased demand from downstream sectors.
Some buyers with actual demand started to make purchases along with price and temperature drops. The increase in long-haul trucks to some mines promoted miners to lift prices.
“Last day, buyers are crazy and traffic jammed all day. I originally was pessimistic about the market, but it warmed up all of a sudden,” said one coal miner in Shenmu. The miner raised offers of washed slack coal (CV 5,700, S 0.3%) by 40 yuan/t to 1,120 yuan/t, mine-mouth with VAT.
Sxcoal’s daily survey showed among 20 surveyed mine, four mines raised up prices by 20-40 yuan/t on November 30, compared with zero in the past week. Still eight mines beat their prices by 20-100 yuan/t.
Thermal coal prices in Ordos continued downside movement, since coal inventory at both mines and washing plants were large as they can only sell coal to local buyers amid the obstructed shipment of long-haul trucks.
Sources said some mines with nearly full inventory had no choice but to stop production and carry out maintenance. Local offer prices for mid-lump coal (CV 5,600, S 0.55%) were around 1,100-1,150 yuan/t.
The transportation obstacles in Ordos and Fugu of Shaanxi have divided some buyers to Shenmu, also a major coal hub in Shaanxi, and gave local miners confidence to lift prices further.
One leading coal mine in Yulin also adjusted up his offer prices today. The slack coal (CV 5,800, S 0.5%) rose 60 yuan/t to 1,120 yuan/t, blending lump coal up 20 yuan/t to 1,070 yuan/t and 40-90mm lump coal up 10 yuan/t to 1,240 yuan/t, all on mine-mouth basis with VAT, Sxcoal learned.
In northern Shanxi, thermal coal prices continued to drop. Sxcoal understood though shipment capacity of Daqin line recovered, the available rail wagons were still tight. Road shipment was slowed down by COVID-related controls, and coal stocks at most mines were relatively high.
Several mines with traces of close contacts of COVID suspended production and sales. One washing plant offered slack coal (CV 5,500, S 0.7%) at 1,085 yuan/t, mine-mouth with VAT.
Note: This article has been exchanged under the article exchange agreement between CoalMint and Sxcoal.
Leave a Reply