Coking coal is rising in Shanxi and Shandong

Due to the tight supply of medium and high sulphur coke, the quotation of Luliang Coal Mine has been raised today. It is expected that the coking coal market in Shanxi will continue to show a slight upward trend in the near future, with strong demand for main coking coal and slightly weak price increase for blending coal. Following a few days ago, Shandong coking refined coal market achieved price inflation, the scope of price increase continued to expand, Shandong and surrounding areas rose after stabilization, individual coke purchase prices followed the increase, overall inventory low, coal mine sales are better.

From early to mid-May, coking coal prices in Shanxi, Shandong and Shaanxi increased in succession, with an increase of 20-50 CNY/ton. After the increase, market demand was good and shipments were not affected. This round of price increase was mainly aimed at market coal, and the price of Changxie Coal, the mainstream coal enterprises, was mostly stable. Most local coal enterprises said that after the end of this round of price increases, the latter period is mainly stable. Downstream, Shanxi Jinzhong coking plant has a third round of increase plan, the planned increase is 100 CNY/ton. Based on no coke inventory in the coking plant, the steel plant is still purchasing normally, so the hope of three rounds of price rise and fall is still large.

In view of the continuous tight supply of medium and high sulphur main coking coal, and the gradual improvement of the profits of coking enterprises in the lower reaches, the purchasing mentality is relatively improved, the warehouse is replenished appropriately on demand, and the shipment of coal mines is generally smooth. The coal price of some coal mines in Luliang area of Shanxi Province has increased by 30-80 CNY/ton today. A coal enterprise in Luliang, Shanxi Province, said that high-sulfur fertilizer coal (S2.0 G90) accepted 1180 CNY/ton and increased its price by 80 CNY/ton. At present, its output has fallen. A coal mine in Luliang, Shanxi Province, said that the price of high-sulfur coke (S2.0) increased by 30-50 CNY/ton. At present, the output is low, with a daily output of about 1,000 tons, and the price of low-sulfur coke (S1.0) increased by 20 CNY/ton. The overall sales are good. Another coal mine in Luliang, Shanxi Province, said that the price of high-sulfur main coke (S1.3 G75) increased by 20-30 CNY/ton. At present, raw coal is scarce, the output of main coke coal is small, and there is basically no stock. A coking plant in Shandong Province said that the price of purchasing low sulphur and high ash coke in Luliang area increased by 50 CNY/ton and accepted 1380 CNY/ton. At present, the coal mine output in Luliang area is generally not high, because the profit of the coking plant is reasonable, the purchasing is relatively improved.

The main gas-producing clean coal in a mine in Feicheng area of Shandong Province is in normal production. From January 1, the price has been reduced by 30-50 CNY/ton. The coal mine is in a rock burst mine, with a 20% reduction in output in 2019. Its output is low and demand is good. Since May 15, the price has risen by 30 CNY/ton. Following a 30 CNY/ton increase in the price of clean coal in Shandong Datong Coal Mine on May 14, local coal mines followed a 20-30 CNY/ton increase. In addition, since May 15, Shanneng has raised the market clean coal by 30 CNY/ton, washing power and blended coal by 20 CNY/ton, and the key Changxie clean coal by 15 CNY/ton. Up to now, Shandong clean coal market and power coal market have basically realized price inflation. After this round of price inflation, market demand has not been affected for the time being, and coal price is stable in the later period.