Luliang, a big coking coal city: the production of coal mines has been stopped

On January 17, the coking coal market in Luliang District of Shanxi province continued to operate stably. After entering January, the output of some large mines was released, and the current output basically returned to the normal level. Near the Spring Festival, many private coal enterprises stop production and have more holidays, some of which indicate resumption of production or after the Lantern Festival. At present, the replenishment of the downstream coking coal is close to the end. Some high-quality coking coal is priced or not, and the inventory is basically at the middle and low level. The market transaction is in a stable transition to the year after. In the downstream, the fourth round of increase of coking steel has not been implemented yet. In the continuous game of coking steel, the short-term bullish sentiment of the market is strong, but it is necessary to pay attention to the rain and snow weather and the inventory change of each link. Now, s2.0-2.5 of main coking coal in Luliang, Shanxi, g85 is quoted at 940-960 CNY/ton, s0.8 of main coking coal in Liulin, 1440 CNY/ton of main coking coal in g85, s1.3 of main coking coal in Lvliang, and 1190 CNY/ton of main coking coal in G75, all of which are factory acceptance price including tax. In terms of production, the production situation of six coal mines in Luliang district has a cumulative capacity of 19.6 million tons. The following is a specific interpretation of this area (unit: 10000 tons). From this table, it can be seen that the daily output of clean coal decreased by 4500 tons compared with the previous week, mainly due to the reduction of high-quality medium sulfur main coking coal resources in some coal mines, the replacement of coal types, and the limited production.

In addition, in order to ensure the safety of production near the end of the year, the enthusiasm for starting decreased. Due to the improvement of coal quality structure, the daily output of some coal mines increased slightly. Considering the approach to the Spring Festival, the overall construction is also relatively low. In terms of price, taking Liulin, a high-quality and low sulfur main coke resource, as an example, the data shows that the price of low sulfur main coke in this area is 290 CNY/ton lower than that of last year. On the one hand, the weak demand of upstream and downstream leads to the low price in the third and fourth quarters. On the other hand, the imported coking coal is outstanding. The price fell to a new low in August and September, which has a great impact on the same type of coking coal in China. As a whole, it is basically lower than that in the same period of 2018 Downward movement of the whole line. Since January, some coal mines in Luliang have been shut down in advance due to lack of raw coal and environmental protection. Most coal washing plants have been shut down after the 23rd of December, so the price remains stable for the time being. In the downstream, from the perspective of supply, at present, the operation of coke enterprises in Luliang is relatively stable, and local short-term production restriction has little impact on the overall supply. At present, the fourth round of increase in the downstream has not yet been implemented, and the main stream steel plants have orderly replenished the storage, and some steel plants in Tangshan have been affected by the heavy pollution weather since the implementation of production suspension and restriction on the 15th. This round of game may be implemented after the Festival, and the market of coke enterprises is mostly strong. In terms of demand, the coking coal inventory of coke enterprises in this region will continue to increase due to the demand for replenishment during the Spring Festival, and the coking steel enterprises will also maintain production during the Spring Festival, and the inventory will be significantly consumed. After the festival, there is a certain support for the demand of coking coal market. In general, after the year, Luliang coking coal market has a high probability of stability, and some outstanding contracts of high-quality resources before the festival are delayed to supply after the festival. The transaction price is firm, which does not exclude the expectation of rising.