中文
Hengyuan Coal Industry and Electricity Power Co., Ltd., a Shanghai-listed coal producer in eastern China's Anhui province, expects domestic thermal coal prices to remain largely stable in 2024, it said during recent interviews with several research institutions.
The company said comprehensive assessment of macro policies, economic performance and industry dynamics point to balanced coal market without large fluctuations next year. Profit from coking coal, which is more exposed to steel mills' operations, could see bigger impacts, it added.
Hengyuan mines and processes coal from five mines with total annual raw coal production capacity of 10.95 million tonnes per annum (Mtpa) and washed coal capacity of 10 Mtpa.
In the first three quarters of 2023, the company produced 7.02 million tonnes of raw coal and sold 5.75 million tonnes of commercial coal. Revenue totaled 5.97 billion yuan ($836.7 million) with net profit of 1.63 billion yuan. As of end-September, total assets were 20.94 billion yuan.
The company's products mainly sell through medium- and long-term term contracts and follow the national pricing mechanism. For thermal coal, prices are set based on a formula linked to the 5,000 Kcal/kg NAR benchmark and adjusted in a monthly manner.
Hengyuan said it maintains balanced production in recent years without major output changes. The company expected output in 2024 would be largely on par with that in 2023.
It has no immediate capacity expansion plans but will extend mine life through deeper resource development.
(Writing by Alex Guo Editing by Emma Yang)
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