Shanxi Coking Coal Group, Yangquan Coal Industry Group, Lu'an Group, and other major coal producers announced yesterday a reduction in thermal coal prices. Yesterday, Shanxi Coking Coal Group stated in its notice that, in response to extreme winter weather changes, to curb the rapid rise in power coal prices, and to ensure stable supply in the power coal market, it has decided to reduce the price of all power coal products supplied to power plants with direct railway contracts by 15 yuan/ton, effective from the 11th. Yangquan Coal Industry Group announced that, starting from January 10th, it would reduce the FOB price of power coal shipped from ports by 15 yuan/ton, while stabilizing long-term agreement prices. Lu'an Group also announced a reduction in thermal coal prices.
Reporters have learned that recent continuous rain and snow in upstream production areas have significantly impacted production and transportation, resulting in subpar inbound volume at northern ports. Concurrently, due to a widespread drop in temperatures across the country, domestic electricity demand remains robust, and daily coal consumption at the six major coastal power plants continues to run at high levels. This week, the six major coastal power plants consumed 5.182 million tons of coal, with an average daily consumption of 740,300 tons.
Pan Hanxiang, a researcher at E-coal Research Institute, informed reporters that due to tight market supply and limited coastal shipping capacity, replenishment for downstream users remains challenging. There are numerous instances of scrambling for goods and scrambling for shipping in the northern port market, further contributing to a price-hiking atmosphere.
Market coal prices are continuously climbing, with the higher FOB quotes for 5500 kcal coal having already risen to 745 to 750 yuan/ton,' said Zeng Hao, Director of Fenwei Energy Price Center, in an interview with reporters. He added, 'Under these circumstances, large state-owned coal enterprises proactively lowering their thermal coal prices will be beneficial for market stability.'" (Excerpt from China Energy Net)
