critical-minerals-hub critical-minerals-hub critical-minerals-hub
The Coal Hub Logo
No Result
View All Result
  • Login
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Coal Consultants
    • Coal Industry Association
    • Coal Industry News
    • Coal Price & Market Information
    • Government Organisation
    • Think Tank
    • Coal Company
  • Videos
  • Other Hubs
    • EUROPEAN GAS HUB
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
Cart / €0.00

No products in the cart.

  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Coal Consultants
    • Coal Industry Association
    • Coal Industry News
    • Coal Price & Market Information
    • Government Organisation
    • Think Tank
    • Coal Company
  • Videos
  • Other Hubs
    • EUROPEAN GAS HUB
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login
The Coal Hub
No Result
View All Result

China’s coking coal demand unperturbed by price rises

Editor by Editor
4 years ago
Reading Time: 3 mins read
Chinese coking coal demand
Share on FacebookShare on TwitterShare on Linkedin

Chinese end-users have been actively replenishing coking coal recently amid the remaining healthy coking margins or rising finished steel prices, total brushing off the fact that the country’s national composite coking coal price touched its 29-month high, reaching Yuan 1,252.3/tonne ($195.2/t) including the 13% VAT on May 10, market sources noted.

RELATED POSTS

World-coal-market

World coal market: brief overview

5 days ago
Measures-to-support-Russian-coal-industry

Putin approves measures to support Russian coal industry

5 days ago
Russian-coal

Explosion at Yakutugol’s washing plant in Neryungri

2 weeks ago

The price has been strengthening since early April in reaction to the supply tightness due to the ongoing safety and environmental checks on core mining regions in China, and the price gained a total of Yuan 127.4/t in one month and a half.

Chart: China’s national composite coking coal price

Chinese coking coal demand

Source: Mysteel, unit: Yuan/t

The ongoing safety and environmental checks, for example, has seriously hampered operations of some miners in Shanxi in North China – the country’s top province for both coking coal and coke production, a Shanghai-based analyst shared.

“Some miners had been uncovered of producing above the designed capacities, which has been a prolonged issue and may lead to higher chances of accidents,” he said, adding several miners have been suspend operation since February because of this and the resumption date is unclear.

On top of this, environmental protection inspections in Shanxi over early April-early May have also partially impacted the province’s mining operations too including coal, he added.

The inspect found a large-sized coal mine with a 15 million tonnes/year capacity mainly for coking coal in Shanxi with serious dust and water pollution issues last month, according to a report by China’s Ministry of Ecology and Environment, though the actual impact on the mine was unknown.

China’s coking coal supply tightness is unlikely to compensated by higher imports either, as the country’s imports, instead of growing, fell by 46% on year to 11.3 million tonnes over January-March, due to the little buying from Australia since last October, Mysteel Global noted.

Last month, Mongolia’s exports of coal for all utilisation slumped 70% on month or down 36% on year to 641,000 tonnes, according to the official data, and the recent statement from China’s National Development and Reform Commission (NDRC) to “indefinitely suspend all activities under the framework of the China-Australia Strategic Economic Dialogue” has further dampened the market expectation on the resumption of the two countries’ coal trading any soon.

“Some ports in China have allowed vessels laden with Australian coal to offload out of humanitarian concerns, some market participants have been closely watching whether China will allow these cargoes to be Customs cleared,” said a market watcher from South China’s Guangdong, but “the latest NDRC comment has dashed the hope,” he added.

As of now and in the near term, China’s coking coal demand will stay buoyant, thus presenting chances for further price gains, according to the Chinese market sources.

Some end-users such as coking plants and steel mills having been booking more to stock up other than meeting the regular consumption on price rises, a Shanxi-based market source noted, and traders have joined too for speculative trading, he added.

By May 6, average coking margin among China’s 30 independent coking plants reached a seven-week high of Yuan 607/t, not too far off the assessment of rebar margin among China’s integrated steel mills at Yuan 984.5/t, both according to Mysteel’s tracking.

Besides, when the environmental protection checks are wrapped up in Shanxi, some local coke makers will be able to resume their operations, and demand for coking coal will probably increase modestly,” a second Shanghai-based analyst added.

As of May 6, coking coal stocks at both the coking plants and steel mills in China has persisted low, as the tonnage at China’s 230 independent coking plants hit a six-week high of 14.2 million tonnes, which was, however, slightly below 2020’s average at 14.5 million tonnes, and the volume will be sufficient for 17.8 days, and the volume at China’s 110 steel plants added up to 8.8 million tonnes, a six-week high but only being able to last 17.5 days, both according to Mysteel’s survey.

Source: Sean Xie & Hongmei Li, mysteel

Tags: China's coking coal demandMongolian coal exportsMysteel
Editor

Editor

Related Posts

World-coal-market
Coal Demand

World coal market: brief overview

5 days ago
Measures-to-support-Russian-coal-industry
Coal Demand

Putin approves measures to support Russian coal industry

5 days ago
Russian-coal
Coal Production

Explosion at Yakutugol’s washing plant in Neryungri

2 weeks ago
Russian-coal
Coal Production

Kuzbass coal production down 4.5% in Jan-Mar 2025

2 weeks ago
power-generation
Coal Demand

India’s coal fired generation surges in March

3 weeks ago
Elga-rail-line
Coal Demand

Elgaugol launches construction of second railroad line

4 weeks ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Trending Posts

Russian-coal

Kuzbass coal production down 4.5% in Jan-Mar 2025

May 12, 2025
Elga-rail-line

Elgaugol launches construction of second railroad line

April 26, 2025
World-coal-market

World coal market: brief overview

May 19, 2025

Recent Post

World-coal-market

World coal market: brief overview

May 19, 2025
Measures-to-support-Russian-coal-industry

Putin approves measures to support Russian coal industry

May 19, 2025
Russian-coal

Explosion at Yakutugol’s washing plant in Neryungri

May 12, 2025
Russian-coal

Kuzbass coal production down 4.5% in Jan-Mar 2025

May 12, 2025
power-generation

India’s coal fired generation surges in March

May 5, 2025
Elga-rail-line

Elgaugol launches construction of second railroad line

April 26, 2025

The Coal Hub is an online platform for sharing analysis and information about the global coal market  more info

Categories

  • Coal Market Outlook
  • Coal Trade
  • Met / Coking Coal
  • Coal Fired Generation
  • Coal Regions
  • Climate & Technology
  • Economic Impact
  • Petcoke

Recent Posts

World coal market: brief overview

Putin approves measures to support Russian coal industry

Explosion at Yakutugol’s washing plant in Neryungri

Energise your Monday!

Sign up to receive our weekly newsletter (each Monday) with new coal market reports, presentations & analysis.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

By signing up, I agree to our TOS and Privacy Policy.

© 2020 TheCoalHub | All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Premium Content
  • Blog
  • Events
  • Industry Links
    • Coal Consultants
    • Coal Industry Association
    • Coal Industry News
    • Coal Price & Market Information
    • Government Organisation
    • Think Tank
    • Coal Company
  • Videos
  • Other Hubs
    • EUROPEAN GAS HUB
    • GLOBAL LNG HUB
    • GLOBAL MARITIME HUB
    • GLOBAL HYDROGEN HUB
    • CRITICAL MINERALS HUB
  • FREE TRIAL
  • My account
  • Login

© 2020 TheCoalHub | All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.