中文
China's coking coal market saw signs of stabilizing with most online auctions concluded with small premiums, as coking plants started to shift to prudent purchasing amid intense cost pressure caused by recent jump in the material.
On November 24, Fenwei CCI Index for Shanxi low-sulfur primary coking coal remained unchanged day on day at 2,480 yuan/t, ex-washplant with VAT; the indexes for Shanxi mid- and high-sulfur coking coal both stayed flat at 2,235 yuan/t and 2,214 yuan/t, respectively.
One Jinzhong-based miner in Shanxi started an auction of 6,000 tonnes of 0.9%-sulfur primary coking coal (A 12%, GRI 95) at 2,250 yuan/t, and the volume was all sold out at prices ranging from 2,256-2,265 yuan/t, Sxcoal learned.
"Coking plants are weighing the current prices, and showed growing reluctance against high-priced coal. More coke firms are left with no choice but to increase production cuts," said one market source.
In Inner Mongolia, most coking plants in Wuhai continued 30-50% production curbs as their losses were exacerbated by continued jump of coking coal prices. Intensified production restraints were heard from several local coke companies.
Coke firm sources contacted by Sxcoal highlighted meager profit margin, even if the second round of coke price hike realizes next week, noting coking coal prices have increased by around 200-300 yuan/t so far this month.
This started to generate fear among the downstream sector of too high prices, and may make miners more prudent in further raising prices.
However, coking coal miners are less likely to adjust down offer prices. They instead maintained firm prices, as many of them have plenty of pre-sold orders and were busy with fulfillment.
"We have suspended sales for a while and will focus on existing orders for the next half of month," said one Shanxi-based large miner.
In the Mongolian coal market, trader sources also noted softening trading liquidity due to quite elevated offer prices.
"Spot prices are unlikely to decline amid ongoing restocking for winter, but will not keep increasing as coking plants are hard to bear," one trader noted.
In the seaborne imported coal market, spot prices of Australian low-vol hard coking coal with December-laycan increased to $320/t FOB, since overseas buyers continued purchases. That translates to around 2,737 yuan/t CFR China with VAT, 70 yuan/t higher than same-quality domestic coal.
(Writing by Rebecca Liu Editing by Harry Huo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.
