Price reduction of coal injection from production area

According to the latest market news, at present, the trend of anthracite market in Hebei continues to differentiate, the high-quality anthracite medium lump coal goes well, while the steel plant uses sintered coal and injection coal goes weakly, and some coal mines in the production area bear pressure to reduce the coal price. Following the reduction of anthracite injection coal price of 60 CNY/ton in Fengfeng mine of Handan area last week, the coal enterprise continues to reduce the price of sintering coal this week, with a decrease of 30-80 CNY/ton After the reduction, the acceptance price including tax for the customers of A12 sintering coal market will be 900 CNY/ton, and the quantity price within 130 CNY/ton will be preferential for the customers. On the whole, at present, the domestic coal injection market continues to be stable and weak. Affected by the low enthusiasm of downstream users to take the goods, recently there are coal mines in Handan, Hebei Province under pressure to reduce the price of sinter coal, with a decrease of 30-80 CNY/ton. After the reduction, the acceptance price of tax included in the market of sinter coal A12 is 900 CNY/ton, and the quantity price preference of 30-130 CNY/ton is available for customers to ship. From the demand side, the profit level of steel enterprises has been improved at this stage, with a high enthusiasm for production. However, considering that after entering the heating season, some steel enterprises in the northern region will start to implement the policy of limiting production in the heating season, some blast furnaces may be shut down or overhauled, and the demand for coal injection by steel enterprises may be reduced. The current mentality of the supply side is not optimistic.

In terms of coke, this week's coke market was weak and stable, and trading was flat; the average weekly price in East China was 1690 CNY/ton, basically the same as last week. At the beginning of the week, some steel mills in Handan, Hebei province raised and lowered 50 CNY/ton for the third round since October, accumulating 150 CNY/ton. Since October 14, coke enterprises in Linyi, Shandong Province have asked for a 30% - 50% production limit, but the environmental protection in North China and other places has eased, and the construction has picked up slightly. Because coke enterprises have little profit space, they are willing to hold the price Strong, no response to the rise and fall, most steel mills also maintain a wait-and-see attitude. The port inventory fell, the trade offer was temporarily stable, the negotiation was in the middle and low end, and the trading was OK. By the end of Thursday afternoon, the prices of quasi first-class coke in all regions were 1770-1790 CNY/ton in Shandong, 1650 CNY/ton in Shanxi, 1790-1810 CNY/ton in Tangshan and 1690-1730 CNY/ton in Handan. In terms of billets, this week's domestic market price of billets first fell and then rose, becoming stronger as a whole, with the mainstream rising 20-40 CNY/ton compared with last week. Specifically, on the one hand, this week's billet adjustment and rolling enterprises have normal production, fair demand for billet, smooth flow of billet direct delivery resources, strong willingness of steel mills to set prices, and relatively firm billet prices; on the other hand, the terminal coincides with the rush time, with a certain demand for replenishment of finished products, the overall inventory of finished products continues to decline, and the price of billets has a certain support; in addition, this week's part of trade.

There is a demand for documents, but at present, there are not many stock resources in billet storage, and the quotation is firm. Next week, considering the implementation of production restriction in heating season, the possibility of market speculation, and the support of billet price, however, the downstream billet adjustment and rolling plan is to implement production restriction, the actual demand for billet is weakened, and the billet price is expected to fluctuate slightly and strongly next week. In the later stage, the trend of coal injection needs to pay close attention to the change of blast furnace operation in Hebei, Shandong and other regions during the heating season. It is expected that the domestic coal injection market will continue the stable and weak operation trend in the near future, and the main stream coal will stabilize after falling, and there may be a small fall back in the local market.