Exploration of Various Coking Coals in Shanxi

Since April 23, coking coal has experienced a wave of price rebound after a continuous decline. Various types of coking coal in Shanxi have increased by 20-40 yuan per ton. Since the first round of coke price increase downstream, coking coal purchasing volume has also increased significantly. With the improvement of market sentiment and the increase of demand, the main coke of a mainstream mine in Xiaoyi, Lvliang, took the lead in raising 40 CNY/ton of high sulfur, followed by a 20 CNY/ton increase in the new signing order of low sulfur main coke coal mine in Anze area, Linfen. The rising sentiment of coking coal has intensified, and the coking coal price in the surrounding market has risen one after another, to the end of the project. Previously, low-sulfur coke, high-sulfur coke, high-sulfur fertilizer coal and 1/3 coke coal rebounded by 20-40 CNY/ton.

Today the coking coal market in the whole country continues to be stable and in good condition. Because the downstream coking plant started to maintain a high level as a whole, the coking plant has a high enthusiasm for coking coal procurement, and coking coal just needs support. At the supply side, the increase of coal production is limited, and most of them are in a tight state, which supports coal prices. In addition, the second round of coke price rise in Shanxi, Hebei and other places has begun to brew. If the second round of coke price rise falls, coke coal in that part of the region is expected to rise. In terms of price, there is a tax of 1660 yuan per ton for low sulphur main coking coal in Luliang area and 1100 yuan per ton for gas concentrate in Jining area.

From the overall market point of view, the price rebound is closely related to the rising demand. Weekly survey data show that the start-up rate of coke enterprises continued to decline from the highest value in February-March after the year. At this time, the coke price is also in the stage of changing from strong to weak. Coke enterprises directly reduce the purchase of coke to control the cost, which leads to the continuous decline of coke prices. Beginning in April, coke price stabilization was promoted by coke steel game, environmental protection factors weakened, coke enterprise start-up rate increased, coke enterprise increase at the end of the month also brought confidence to upstream coke coal, coke coal purchase enthusiasm increased, coking plant purchase volume increased, market demand improved, coke coal declined from the earlier stage to a stable trend, some scarce resources even began to rebound slightly, and with the current second round of coke market. With the increase of coal mine price, the mentality of increasing coal mine price has been strengthened, and the quantity of increasing coal mine price has also increased. At present, from the downstream market, although the production limitation of Tangshan BF after May 1st is not as expected, the possibility of strengthening the production limitation is not excluded in the later period. Whether the second round of coke price increase can be implemented is still uncertain and the demand increment is limited. On the supply side, in addition to the shortage of individual high-quality resources, coking coal market supply has gradually turned to loose, the overall supply is not scarce. In summary, although there have been many rebounds in the coking coal market, further increases still need to pay attention to the implementation of coke prices downstream. In the final analysis, whether prices can continue to rise depends on the demand. It is expected that the short-term coking coal market will continue to be stable, not excluding that individual regions will continue to rise due to the influence of surrounding price increases.