Sxcoal Issue #3 | Weekly Chinese coal market review
This is a weekly review of the Chinese coal market -- thermal coal, coking coal and met coke, based on our exclusive surveys and analysis.
Thermal coal
Contrary to previous expectations of upticks, China's thermal coal prices dropped last week, as surging infections after eased COVID measures continued to curb activities.
The declines were both seen in the portside and mine-mouth markets. By late last week, mine-mouth price of Shanxi Datong 5,500 Kcal/kg NAR coal dropped 20 yuan/t WoW, while offers of same-quality cargoes fell 50-80 yuan/t at northern transfer ports.
By contrast, Indonesian low-CV thermal coal prices continued to gain strength last week from tender invitations by Chinese utilities ahead of the Christmas holiday, presenting a hike of $3/t, while mid-CV coal stayed flat week on week.
Check this article for more details
Coking coal
China’s coking coal market extended upbeat during the past week, supported by reduced production, robust winter restocking, and expected further rise of coke prices.
Offers for Shanxi low-sulfur primary coking coal increased by another 90-150 yuan/t last week, while meager coal and meager lean coal ticked up 100 yuan/t.
In the import market, few front-month seaborne trades were concluded last week, while Mongolian coal supply stayed high at Ganqimaodu border crossing.
For detailed review of the Chinese domestic and import coking coal market, click HERE.
Met coke
Some metallurgical coke producers in China started to raise coke prices by 100-110 yuan/t for a fourth round of price hike, backed by high cost support and buying enthusiasm by steel mills, despite difficulties in implementation.
Participants expected more producers to follow suit next week. The move came with further rise of coking coal and key steel products, and positively driven by expected measures from Beijing to shore up the struggling real estate sector.
All these are detailed in this REVIEW.
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