- Key miner in Shanxi cuts prices by $18-28/t for Q3
- Coking coal prices fall on oversupply, demand slump
Mysteel Global: Two large coking coal mining groups have recently slashed their long-term contract prices for the third quarter of this year, reflecting growing pressure from persistent oversupply and weakening demand, Mysteel has learned.
One of them, a leading coking coal group in North China’s Shanxi province – China’s top mining hub for the commodity – sharply revised down its Q3 term contract prices by Yuan 130-200/tonne ($18-28/t) for various coking coal grades for deliveries via railway, effective from July 1, according to market sources.
Compared with Q2 prices set on April 1, the group’s Q3 contract prices for primary coking coal were lower by Yuan 150-170/t, contract prices for fat coal and 1/3 coking coal declined by Yuan 200/t and Yuan 130-210/t, and those for lean coal, gas coal and meagre-lean coal dropped by Yuan 130/t, Yuan 150/t and Yuan 130/t, respectively.
Similarly, a top coking coal firm in Pingdingshan city, Central China’s Henan province, on June 17 clipped its Q3 term contract prices for primary coking coal by Yuan 80/t to Yuan 1,380/t, and 1/3 coking coal by Yuan 100/t to Yuan 1,240/t, both on a free-on-rail basis with VAT included.
Major coking coal miners in Anhui and Heilongjiang provinces have yet to release their Q3 pricing, but market participants expect similar price cuts, citing continued downward pressure on the coking coal market from excessive supply and softening demand.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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