The market fell and the price of high-sulfur and high-quality resources

The main coke with low sulphur content and lean resources for long-term treatment of poverty in Linfen and Luliang areas of Shanxi Province showed different declines, with the highest decline of 80 CNY/ton in actual transactions. According to the investigation, Lingshi Fertilizer Coal and Liulin High Sulphur Coke have a strong price performance due to resource constraints. Coal mines have a strong wait-and-see attitude towards the short-term market, and think that the market is in a dilemma.

On the production side, the sample coal washery and coal mine in Shanxi Province were investigated this week. Due to the shutdown of production and maintenance of large mines during National Day, the start-up rate showed a significant decline compared with that before the festival. Although some of them have slowly resumed production, the output has not yet returned to the pre-festival level, and the start-up rate is expected to rise significantly next week. In terms of inventory, during the festival, coal mine shipments were blocked, downstream purchasing enthusiasm was low, combined with the overall production restriction, the inventory of coal mines and coal washery showed an upward trend. With the recent resumption of coke steel production, the demand is expected to rise.

On the downstream side, coking has increased in Shanxi and Tangshan this week, which is not yet accepted by steel mills. In addition, air pollution control measures were issued in October in Tangshan area. According to the statistics of our network, the influence of steel mills on daily coke consumption is greater than that of daily coke output, and the driving factors of coking increase are insufficient. Linfen Shanxi also issued the autumn and winter production restriction documents, the implementation of which needs to be tracked. In the short term, coke prices are running steadily in the dilemma of rising and falling, and the rising sentiment supports the coke coal market. Overall, coking coal in Shanxi market continues to operate steadily in the short term, and the mentality of coal mine price stabilization is strong. Changzhi represents that the price reduction of the mine may have an impact on the surrounding market, and the follow-up drop of coal washery and coal mine may be larger.