How much less coking coal has been produced?

Last week, the demand of coking coal market in China continued to be weak, and coking coal prices in some areas continued to drop sporadically. The reduction of coking coal mainly focused on high-sulfur coking coal and blending coking coal, and the price of high-quality coking coal was relatively stable. Coke market continues to be weak, profit shrinkage is obvious, coking plant intends to crack down on coke coal increased, deliberately control the arrival of coke coal, digest inventory, local coke blending market demand is general, coal enterprise inventory increased, coke prices in Shaanxi, Shanxi, Inner Mongolia, Shandong, Hebei and other places have been reduced, coke coal decline is less than 20-40 CNY/ton. The decline is more than 50-100 yuan per ton. In the later period, the market of coking coal will continue to be stable, moderate and weak throughout July, and there is no hope of rebound. Shanxi coking coal market prices continued to drop sporadically last week. Affected by the continuous decline of coke price and the slowdown of purchasing, the price of blended coke coal in Changzhi area of Shanxi Province dropped by 30 CNY/ton under pressure. In addition, the price of high-quality main coke coal in Linfen area decreased by 100 CNY/ton compared with the previous high price. After reduction, the price of low-sulfur and low-ash main coke coal was S0.5, and the tax acceptance of G80-85 was about 1520 CNY/ton. As for Changzhi, the price of lean coal in Changzhi area has been reduced by 50 yuan per ton since July 1, and the tax of low sulphur lean coal is 1170-1190 yuan per ton. At present, the demand improvement of coking coal in these areas is limited.

Shandong: Shandong clean coal market continued to be under pressure last week. Most local coal mines implemented a Price-Volume preferential or one-household sales policy, which is equivalent to a disguised price reduction of 20-40 CNY/ton. Some local coal mines reduce their prices by 20-40 CNY/ton in disguised form. After the reduction, the local coal mine gas concentrate output tax is about 1100-1130 CNY/ton. Unlike local coal mines, the coke price of Shandong mainstream coal enterprises is still running steadily, and there is a risk of pressure downward in the later period. On the downstream side, last week, Yongfeng of Rigang and Laiwu Iron and Steel Co. opened the third round of coke price increase and decrease by 100 CNY/ton, with a cumulative decrease of 300 CNY/ton. After the reduction, the acceptance price of Yongfeng secondary coke at Laiwu Iron and Steel Co. will be 1830 CNY/ton, 1880 CNY/ton for quasi-primary coke and 2073 CNY/ton for quasi-primary coke dry quenching. For the third round of price reduction of steel mills, coking plants in Shandong have accepted it one after another, but after three rounds of price reduction, coke profits are basically on the edge of break-even, and there is limited space to continue downward, which is expected to stabilize gradually.

In other areas, the price of coking coal for land sales in Kailuan Group of Hebei Province was reduced by 30 CNY/ton last week, but the price of coking coal for energy in Hebei and Jizhong remained stable. Coke prices continued to fall under pressure, coke demand slowed down, and coal enterprises'inventory pressure. Following the reduction of coke prices in Shanxi, Shaanxi and Inner Mongolia, from July 1, the prices of refined coal sold by the mainstream coal enterprises in Tangshan District of Hebei Province were reduced by 30 yuan per ton. After the reduction, the prices of main coke coal A10.51-11, V21-25, G90-100, S< 1 included tax acceptance of 1530 CNY/ton. In addition, coking coal prices in Shanxi have continued to decline sporadically in recent days. The price of main coking coal in Anze area of Linfen has dropped another 20 CNY/ton to 1520 CNY/ton. Shanxi coking coal market will still be weak in the later period. Overall, as a result of the lag of market transmission of coal and coke, although coke is expected to stop falling and stabilize in the later period, it still takes some time to transmit to coke, and it is expected that the coke market will continue to be weak throughout July. Although there is still support at the coke supply side, the short-term coke blending market is obviously under pressure due to weak coke market expectations and high stock of some kinds of coal, but the possibility of a deep drop is not likely, mainly because the downstream coke market is expected to gradually improve in the later stage. In terms of price, it is expected that the price of gas and clean coal in Shandong will be 1,100 CNY/ton this week, the price of main coking coal in Handan, Hebei Province will be stabilized at about 1,480 CNY/ton, and the price of low sulfur main coking coal in Luliang, Shanxi Province will be stabilized at about 1,660 CNY/ton.