HomeProduct Complimentary download Steel downtrend further dampens Chinese met coal market

Steel downtrend further dampens Chinese met coal market

Keyword:
Publish time: 20th July, 2015      Source: www.cnchemicals.com
Information collection and data processing:  CCM     For more information, please contact us
China’s metallurgical coal market has further deteriorated over the past week, as steelmakers steered clear of purchases as they grapple with a persisting downtrend in steel markets.Moreover, persisting losses and the government’s intensified environmental protection campaign are leading to more furnaces maintenance and output cut in steel mills.Sources said only one or two out of the 12 steel mills in Bazhou region of Hebei province were in operation. Some small steelmakers in Hebei also started to cut production, impacted by the Anti-Japanese War military parade in early September.Many steel mills sources in Tangshan confirmed that they have received notifications from the local government to suspend or cut production for nine months, in preparation for the World Horticultural Exposition to be held in the city in 2016.One Changzhi-based large miner took the lead to cut the free-on-rail prices of his lean coal and PCI by 10-20 yuan/t, and started to pay some fees related to rail transport, resulting in a total 30-40 yuan/t drop.Prices of imported coking coal also posted apparent drop amid weak domestic demand. The price of premium low-vol hard coking coal was assessed at $92.5/t CFR China on July 15, falling $2.75/t on week.Many coking plants expected coking coal prices to drop; some of them in Linfen of Shanxi and Hebei province have cut coking coal purchase prices this month. One Hebei-based coke producer cut purchase price of Shanxi high-sulphur primary coking coal by around 20 yuan/t, with the delivered price of this material with 1.3% sulphur at 590 yuan/t.On the other hand, some steelmakers hoped recent furnace maintenances across China could help balance the seasonal drop-off in demand over the next two months.