Fenwei thermal and coking coal survey on May 29

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Coal industry consultant Fenwei Energy Information Services surveys thermal and coking coal mines in northern production provinces each day to track prices and capacity utilization.

Coking coal survey

On May 29, Fenwei surveyed 20 coking coal mines in main production areas. 16 of them held prices stable; three raised prices by 10-20 yuan/t; and one suspended production.

Coking coal stocks at main producing areas were generally low amid active purchase from coking plants. Average operating rate fell slightly by 3.21 percentage points on the week, mainly due to production suspension of some mines in Shanxi amid environmental checks.

Salesmen surveyed by Fenwei believed coking coal prices would continue climb as coking plants kept strong restocking demand and coke profit margins are about to expand from the 4th coke price hike.

Prices of blending coking coal will generally be stable, considering sufficient stocks at downstream coking plants.

Thermal coal survey

On May 29, Fenwei surveyed 20 thermal coal mines in main production areas. Among them, 11 cut prices by 5-15 yuan/t; seven held prices stable; and two suspended production.

Thermal coal stocks at mines remained flat at medium levels. Overall output leveled off as coal production enthusiasm weakened due to tepid demand while production of some coal mines in Shaanxi was still under suspension for environmental checks. Miners tended to arrange production based on sales.

Salesmen surveyed by Fenwei held slight bearish sentiment over the short-term thermal coal market. Major coastal utilities were well stocked with the fossil fuel and remained tepid in restocking amid low daily consumption, and traders were also inactive in procurement. Dull sales might continue to take a toll on coal prices.

Source : SX Coal