中文
Reduced buying activities from coking plants have cast a bearish shadow over China's coking coal market, resulting in lower trading prices both online and offline.
On October 19, the CCI index for Shanxi low-sulfur primary coking coal fell 17 yuan/t from the day prior to 2,255 yuan/t; while mid- and high-sulfur coal prices remained stable at 2,080 yuan/t and 2,073 yuan/t, respectively, ex-washplant with VAT.
In the latest session of online auctions in main coking coal producing province Shanxi, although some deals settled higher compared with previous days, more auctions failed or concluded with lower hammer prices with reduced starting prices.
One miner in Anze, Linfen of Shanxi saw its auctions for raw primary coking coal (S 0.5%, A 7%, GRI 90) fail for the second straight day after starting at 1,450 yuan/t and 1,500 yuan/t respectively on October 18 and 16.
In Linfen, one roof collapse accident happened in a coking coal mine in Xiangning, Linfen on October 18 got a miner killed. The mine, with 0.8-Mtpa approved production capacity and mainly producing low-sulfur primary coking coal, was ordered to be suspended.
The rest mines in the region were not yet affected by the incident. "Other mines of the same group are expected to be scrutinized frequently in the following days, and this could impact production to different levels," said one local miner. This perception was also recognized by other several mines.
The unwanted auction performance dealt another blow to already gloomy market sentiment, and pushed more miners to adjust down their spot prices.
Sxocal understood part of miners in Linfen and Taiyuan of Shanxi have cut prices of premium coal grades such as low-sulfur primary coking coal and fat coal by 100-150 yuan/t.
Miners in Gujiao disclosed their offer prices for low-sulfur washed coking coal (S 0.5%, GRI 85) dropped by 150 yuan/t to 2,200 yuan/t, ex-washplant with VAT and in cash.
The long-haul coal trucks for Mongolian imported coal flowing to Shanxi and Hebei resumed on October 19 after an important political gathering in Beijing concluded yesterday, according to several coal traders.
"The buying strength was subsided, but trading prices remained quite firm given limited availability of saleable cargoes at Ganqimaodu", said one trader there. He noted overall trading prices for Mongolia #5 raw coking coal at Ganqimaodu were at 1,520-1,550 yuan/t, ex-stock Ganqimaodu with VAT.
He supposed this price is about to drop in the near term to match domestic market trends.
(Writing by Rebecca Liu Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.
