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Shandong washed gas coal prices start to drop
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Shandong washed gas coal prices start to drop
Keyword:
Publish time:
23
rd
July, 2015
Source:
www.cnchemicals.com
Information collection and data processing: CCM For more information, please
contact us
Prices of washed gas
coal
, used for blending for
coke
production, started to drop in East China’s Shandong province recently, as coking plants kept pressing down prices to reduce cost amid worsening coke and steel markets.One source with a local mining company confirmed that his company has cut the ex-washplant price of washed gas coal with sulphur below 0.5% by 5 yuan/t to 475 yuan/t, effective July 21. He anticipated decline on all washed products, given the inactive buying from coking plants, which seemed were not satisfied with the small price cut.One local miner source said his company may reduce the ex-washplant price of 0.5% sulphur washed coal in late-July, which is offered at 495 yuan/t presently. He said neighboring coking plants were asking for a price cut, but the decline may not exceed 10 yuan/t due to already very low prices. "We hope the washed coal market will recover in September," he said.One local trader projected a 10-15 yuan/t drop on washed coal prices by July 24-25. "The ex-washplant price of locally-produced washed coal with 0.6% suphur has dropped 10 yuan/t to 460 yuan/t with VAT presently," he said.One local coking plant has suspended purchase from one supplier, due to less than expected price drop, one insider said, noting the supplier just cut the ex-washplant price of washed gas coal with below 0.5% sulphur by 5 yuan/t to 475 yuan/t."We accepted a 10 yuan/t cut from another supplier," the insider said. "We have cut coke prices twice recently and have to cut cost to reduce losses.Market sources said many coke producers have agreed to cut coke prices in response to steel mills’ strong bargain, further weighing on coking coal prices.Rizhao Steel Holding Group Co., one leading Shandong-based steel producer, cut coke purchase price by 20 yuan/t from July 16, the second decline in a month after a 10 yuan/t cut on July 8.
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