China's coal market faces increasing downward presSaturday, 25 Apr 2009
It is reported that as small coal mines in Shanxi and Henan start to resume production while demand still keeps low, China's coal market, as it is believed will probably continue to decline in the future.
Let's have a look at thermal coal. On April 12th China's locally-served power enterprises consumed 1.66 million tonnes, 30,000 tons less than on April 6th. They have 28.48 million tonnes of coal stock, which is enough for 16 days' production 1 day more than in late March.
Although Qinhuangdao, China's major coal port saw coal price rising, coal has started to pile up again after several weeks of decline and thermal coal price has pointed to the downside in Jiangsu, Anhui, Shanxi and Hebei. Coking coal and lump coal prices hit by the weakened downstream market have kept declining.
Coal demand will continue to be low in the near future. And as small and medium-sized coal mines facilitate coal supply, coal market will continue the downtrend, according to the prediction.
1. Qinhuangdao port
Coal stock increased by a small quantity, because the railway department enhanced the transportation of Mongolian coal recently, thus coal stock rebounded slightly. By April 17th coal stock had stayed at 3.66 million tonnes increasing by 120,000 tonnes compared with April 11th. But still, such level is a low one, and vessels still need to wait for the resources to come up.
Last week all varieties of thermal coal witnessed a CNY 5 per tonne to USD 15 per tonne rise compared with a week earlier.
2. East China
There's simply no driving force for market demand to grow, and coal price continue to dip. Statistics show high grade thermal coal price dropped CNY 10 per tonne at Wanzhai port, Xuzhou, Jiangsu province, and coal stock fell slightly. In Nanjing and Suqian, it came down by CNY 50 per tonne. In Anhui, Huainan, Huaibei and Suzhou, 1/3 coking coal and medium grade thermal coal declined by CNY 100 per tonne and CNY 50 per tonne respectively.
3. North China
Coal market is still going through downgrading. As small coal mines begin resuming production in central and south Shanxi province, coal prices start to fall by CNY 20 per tonne to CNY 30 per tonne.
In Jinzhong and Yuncheng, the primary clean coal dropped CNY 60 per tonne to CNY 70 per tonne compared with last week.
4. Northeast China
Coking coal price continue to fall due to weak market demand. In Fushuan and Anshan, the main coal producing areas in Heilongjiang province, coking coal price slumped by CNY 100 per tonne to CNY 200 per tonne.
5. Central south
Coal market remained relatively flat amid downward pressure. Small and medium-sized coal mines have started to resume production successively, while market demand has remained flat as before.
6. Northwest China
Coal market remained weak, and coal prices kept declining. Statistics show in Wuhai, Inner Mongolia, 12 grade primary clean coal dropped CNY 80 per tonne compared with a week earlier. In Shaanxi, coking coal and lump coal dipped by CNY 50 per tonne compared with last week.
7. Southwest China
Trade was thin in the gloomy market. In Liupanshui, Guizhou, primary clean coal came down by CNY 80 per tonne compared with last week, and then it stayed at CNY 130 per tonne. In Anshun, anthracite slack coal edged down by CNY 40 per tonne compared with last week. In Chengdu, Panzhihua, primary clean coal dropped by CNY 200 per tonne from last week.
(Sourced from.Mysteel.net)
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