Shanxi Linfen high-quality main coking coal price rises another 20-30 yuan

According to market information, on July 25, the main coke of low sulfur in Anze area of Linfen, Shanxi, rose 20-30 CNY/ton again, a cumulative increase of two rounds. With the coke price fully landing and smooth delivery of coal mine, Anze represents that there is no inventory in coal mine. Some contracts in the superimposed early stage are implemented successively, and the supply of main coke is tighter as a whole. Now the coal mine has negotiated a new price with the coke enterprises, which is expected to be implemented today and tomorrow, and the actual transaction will be increased by 40-50 CNY/ton. The price of main coke S0.5G85 is 1570 CNY/ton, up 20 CNY/ton, and the factory acceptance includes tax. In addition, the price of lean and poor coal in Changzhi District of Shanxi Province has been reduced by 50 CNY/ton, and some coke enterprises are more active in purchasing, while some coke enterprises in Luliang District purchase local high sulfur resources on demand. In the first round of coke price rise and fall, coke enterprises'profit rebounded and the enthusiasm of raw coal purchasing increased. Coal mine shipment gradually improved, the market basically operated temporarily, and some of the premature overshoots of high-quality resources increased slightly. 

This week, the coking coal market in China began to stop falling and stabilize, with only a small increase in coking coal prices in some areas. With the gradual improvement of coke market, coking plants in some areas have increased their efforts to replenish high-quality coking coal. Affected by this, the price of high-quality coking coal in Linfen, Changzhi, Shanxi Province, has started to rise slightly, ranging from 20 to 40 CNY/ton. After that, the output tax of high-quality main coking coal in Anze, Linfen, is about 1550 CNY/ton. Unlike the performance of high-quality coking coal in the above-mentioned areas, the coking coal blending market, after a sharp drop in prices at the end of June and the beginning of July, has basically shown a steady state. Later, with the gradual improvement of the downstream coke market, the coking profit situation will gradually improve, the coking plant will continue to crack down on coking coal in the latter stage of the strength will be weakened, the coking coal market will gradually stabilize, but the overall rebound conditions are not yet available. Recently, with the first round of coke price increase and fluctuation, large steel enterprises in Hebei, Shandong and other places have implemented the price increase. The first round of coke price increase has been completed, with a rise of 100 CNY/ton. Increased profits of coking enterprises and appropriate replenishment of some coking coal will affect the smooth sale of high-quality main coking coal in Shanxi and the low-level operation of mine inventory. The analysis shows that after the implementation of the first round of price increase and fluctuation in the coke market, the market has a strong wait-and-see sentiment, the overall inventory of coke enterprises is at a low level, and the phenomenon of queuing for loading in some coke enterprises still exists. Some coke enterprises have the second round of price increase in recent days, taking into account the sufficient low order of coke enterprises, the environmental protection expectation of the Second Youth League, the capacity of coke production in Linfen and Shandong areas of Shanxi Province, and the low and medium level of coke stocks in some steel plants.

There are also market participants who believe that due to the current low profits of steel mills and the sufficient coke stock in some steel mills, there is a greater resistance to continue to rise, and some coke enterprises are mainly on the wait-and-see basis in the near future. Pay attention to the price of steel in later period, the policy of restricting production in Tangshan area, the environmental protection of Shanxi Erqing Society and the capacity of Shandong area.