How much coking coal rose in December?

In December, the national coking coal market rose steadily, among which the price of Shanxi and Inner Mongolia coking coal rose about 20 CNY/ton, supported by tight supply and demand for winter storage. In Shanxi Province, the annual production task of coal mines in Shanxi Province was completed by the end of the year. Most of the coal mines were shut down for maintenance, and the supply was tight. The price of some high-quality coking coal increased by 20 CNY/ton. After the increase, the main coking coal of No. 4 Liulin in Luliang district had a tax bearing capacity of 1380 CNY/ton. In Inner Mongolia, due to the tight supply of Shanxi coking coal, some customers turned to Wuhai for purchasing. In December, the price of clean coal in Wuhai increased by 20 CNY/ton, and after that, the price of low sulfur 1 / 3 coking coal in Wuhai increased by 1040 CNY/ton. In the later stage, the downstream steel plants and coking plants will still actively replenish the stock of raw materials at the end of the year to cope with the holiday of coal mines during the Spring Festival.

Therefore, the demand of coking coal market before the year is still supported to a certain extent. Before the year, the mainstream coal enterprises will mainly stabilize the overall price, and the situation of coking coal market after the year is not optimistic. In December, the coking coal market in Shanxi showed a trend of tight supply and rising prices. The tight supply is mainly due to factors such as the increase of coal mine security inspection at the end of the year, shutdown and maintenance, etc. In December, the price of low sulfur main coking coal in Anze District of Linfen increased by 50 CNY/ton to 1420 CNY/ton, and that of low sulfur main coking coal in Luliang district increased by 20 CNY/ton to 1420 CNY/ton. Different from the trend performance of market coal, based on the large environment change of loose supply and demand of coking coal market, Shanxi Coking Coal Group lowered the price of Changxie coking coal by 20-50 CNY/ton in the first quarter of 2020. Affected by this, mainstream coal enterprises in other regions will also follow up the reduction. In December, Shandong coking coal market was generally weak and stable. In December, most of the coal mines in Shandong Province had normal production and sufficient supply, while the demand side was affected by the factors of coking capacity reduction in Shandong Province, with obvious shrinkage and general sales. The coal enterprises generally had inventory pressure and the prices were weak and stable.

The coal enterprises in Shandong Province would give priority to strong prices before the year, and the market situation after the year was still not very optimistic. In terms of price, the tax of Jining area is 860 CNY/ton, and that of Zaozhuang area is 1130 CNY/ton. In the downstream, after the three rounds of price increase of coke, the coking profit has reached a new high in the year, but steel mills and coking plants are still optimistic about the future of coke. Coking plants say that they will try to increase the price in the fourth round before the Spring Festival; steel mills say that the price of coke is difficult to fall before the Spring Festival, and the main supporting factor is the existence of the demand for steel mills to replenish the stock at the end of the year. Near the end of the year, steel mills are mainly actively replenishing coke inventory. In the critical period around the Spring Festival, they will not easily consider suppressing coke prices and affecting production. In other aspects, in addition to the tight supply of coking coal market in Shanxi, the price of coking coal in Yan'an and Wuhai areas of Inner Mongolia has also increased slightly, with an increase of about 20 CNY/ton, including the increase of 20 CNY/ton to 810 CNY/ton in Yan'an area of Shaanxi, and the increase of 20 CNY/ton to 1040 CNY/ton in low sulfur 1 / 3 coking coal in Wuhai area of Inner Mongolia.