Shanxi low sulfur main coke starts the third round of price increase

Today, the national coking coal market is in weak and stable operation, among which the main coal enterprises in Shanxi Province will take the firm price as the main one years ago, and the pressure on Shandong clean coal market is relatively large. At present, the coal production in Shandong Province is normal, and the output is sufficient. In addition, the coking deproduction has not affected the demand, and the downstream coal is mostly purchased on demand, and the overall price is low. Among them, Shandong gas clean coal has been reduced to about 850 CNY/ton, and the price has been changed from 1130 in July Down to the current 850 CNY/ton, a total decrease of 280 CNY/ton, a decrease of 24.77%. There is limited space to continue to suppress before the year, and it is expected to stabilize operation. After the year, the market situation is not optimistic.

According to market news, due to the active transportation of downstream customers and the tight supply of low sulfur main coke in surrounding coal mines, the raw coal and clean coal shipments of some low sulfur mines in Linfen area are all smooth. Recently, the price of clean coal increased by 30 CNY/ton in the third round. After the increase, the spot tax price of low sulfur main coke clean coal (S0.5 g85 mt14) was 1370 CNY/ton, up 70 CNY/ton compared with the same period in November. At present, the spot exchange tax price of low sulfur raw coal is 860 CNY/ton, with a month on month increase of 60 CNY/ton. According to market news, some low sulfur mines in Linfen have been pre sold to the end of the year. With the close of the year, the coke enterprises in the lower reaches generally increased their efforts in winter storage and replenishment. The main low sulfur mines in Linfen, Shanxi Province delivered smoothly. Some of the coal mines were sold out before the Spring Festival. At present, new orders are suspended and limited supply is implemented to old customers. Recently, the main transaction price of local low sulfur main coke clean coal (s0.4-0.5 g80-85) is 1400 CNY/ton, including tax and acceptance price. It is worth noting that near the end of the year, the security inspection of Shanxi coal mines has been strengthened, and now the output of most coal mines has declined, resulting in the shortage of resource supply, which supports the price before the year.

Now, the low sulfur main coking coal in Linfen area, Shanxi Province has a tax bearing capacity of 1420 CNY/ton, the low sulfur main coking coal in Luliang area has a tax bearing capacity of 1380 CNY/ton, and the low sulfur fat coal in Luliang area has a tax bearing capacity of 1400 CNY/ton. Affected by the tight supply of Shanxi coking coal, some customers turn to Wuhai, Inner Mongolia and Ganqi Maodu. In addition, the demand reduction of Shandong gas coal shipment is not smooth. At the end of the year, the coke production capacity in Shandong Province was eliminated in a centralized way, the demand for coking coal in the region was significantly reduced, the local coal mine delivery was not smooth, and some coal mines still had price reduction behavior at the beginning of the month. The main stream of gas coal (S0.5 g70-75) was delivered with cash price of 870 CNY/ton, with preferential policies for quantity and price. In terms of coke, the supply side of coke has shrunk due to capacity reduction and early warning weather. At present, the inventory of coke enterprises is low in the factory, and some coke enterprises have reached the end of the month or the beginning of the next month.

Coke enterprises are relatively optimistic and willing to continue to explore for growth. In terms of steel plants, due to the recent difficulties in railway vehicle approval, rain, snow, fog and other factors affecting the arrival of steel plants, the inventory has declined In the short term, the main trend is to increase the storage actively. In terms of ports, the price reverse traders gather passively. However, the demand for increasing the storage in the downstream of domestic trade is slightly increased, and the port's inventory reduction is relatively obvious. As a whole, the short-term coke market is more affected by the tightening of the supply and demand margin. In terms of coking coal, with the coming of the year, the coking enterprises generally increased the strength of storage and replenishment in winter, with the completion of the annual task of coal mines, the impact of safety inspection, the supply of coking coal was significantly tightened. In the case of tight supply and demand of coking coal, the coking coal market was supported to develop well, and the main coke with high and low sulfur in Shanxi Province rose to varying degrees. In terms of imported Mongolian coal, due to the increased demand for replenishment of the lower reaches of the reservoir, the recent shipment at the port has improved significantly, and low-cost resources have been increased. At present, the price of raw coal at the port of Mongolian 5 is about 840-860 CNY/ton, which is 30-40 CNY/ton higher than the previous low point. As a whole, in the future, based on the fact that the annual long-term price of coking coal in 2020 is mainly stable, and the increase of coal mine security inspection at the end of the year, the short-term price of coking coal will form a certain support, but the rebound does not have the basis and conditions, and the later price will still be weak.