Key Points:
Price of metallurgical coke was stable this week while that of domestic
coking coal, PCI and thermal coal rose amid stability. Most coking
plants intensified production limitation and blast furnace operating
rate dropped.
Coke:
From Monday to Thursday this week, price of domestic coke finalized at
transactions was stable. Since the question of when the epidemic will be
put an end is unsettled, most coking plants and steel mills have no
intention of price adjustment. A few of them believe the market will be
steady in the future based on the current situation while a minority are
bearish on the market in March. It is expected that domestic coke market
will keep unchanged in the short run.
Coking Coal:
From Monday to Thursday this week, price of domestic coking coal rose
amid stability. Some coal mines haven’t resumed production yet. The rate
of work resumption at coal mines producing low sulphur coke in Anze,
Shanxi province was low after the Chinese Spring Festival holiday. Some
coal mines will sell supplies recently with an intention of putting up
the price by 100 yuan/t or so. Price of a few clean coal with a high
moisture content rose by 70 yuan/t.
Ports at Mongolia were closed. In Northern ports, transactions of
imported coking coal were sound with available supplies at ports
plunging dramatically. Australian I grade coking coal rose by 30-50 yuan/t.
It is expected that in the short term, price of coking coal will be rise
amid stability.
PCI:
From Monday to Thursday this week, price of domestic PCI rose amid
stability. Price of PCI quoted by local coal mines in Changzhi, Shanxi
province rose by 20-30 yuan/t in recent days. Currently, truck
transportation was limited, but steel mills’ procurement (delivered by
train) was not affected. It is expected that price of PCI will be robust
amid stability.
Thermal Coal:
Domestic thermal coal rose amid stability. Coal mines are resuming
production one after another, but some are still waiting for the notice
of work resumption. It is expected that thermal coal market will be
robust amid stability in the future.
Hot Issues:
According to the latest statistics released by
China National Coal Association, most coal mines subordinate to Shaanxi
province have already resumed production by February 10. And 51 coal
mines in China have already resumed production with 0.7574 million tons
of daily production volume. Further, 70 coal enterprises in Shanxi
province are in the normal operation.
Comments:
Coal mines at some place are still waiting for the notice of work
resumption, and some already resuming production haven’t completely
recovered.
Trading Tips:
The large number of steel mills having steel materials at a high level
renders the bearishness on the steel market in the future. As some steel
mills postponed the day for blast furnace maintenance because of the
epidemic, unfavorable to coke market, it is suggested that steel mills
and traders should be cautious in procurement and coking plants arrange
production reasonably. |