Weekly China coal market news summary (Apr 5-Apr 7)
2017-04-10 16:05:00 General, Viewpoint, Price, Production & Sales, Thermal Coal, Coking Coal sxcoal.com Coking coal demand to rise 41.13 Mt in countries covered by the Belt and Road Initiative
Demand for coking coal, one key steel-making material, is expected to increase by 41.13 million tonnes in countries covered by China's Belt and Road Initiative this year, predicted Chang Yijun, chairman of coal consultant Fenwei Energy Information Services, at an industry summit held in Beijing on April 7.
Consumption of crude steel and pig iron in countries along Belt and Road Initiative is projected to reach 1.2 billion tonnes and 798.48 million tonnes, respectively, in 2017, as steel demand expands to support infrastructure construction, Chang said at the 7th Global Coking Coal Resource & Market summit.
China coking coal prices to run higher this yr on tight balance
China's coking coal prices would be higher as a whole this year, as the domestic market moves from last year's shortness to a tight balance, with limited room of adjustment, Sarah Liu, vice general-manager of coal consultant Fenwei Energy Information Services, said at an industry summit held in Beijing on April 7.
Coking coal prices would be prone to rise but hard to decline, given relatively low stocks at production, transfer and consumption areas while supply continues to face constraints, Liu said at the 7th Global Coking Coal Resource & Market summit.
China Xiongan New Area development to fuel steel demand
Development of the Xiongan New Area in Hebei province, announced by the Chinese government on April 1, is expected to boost demand for steel and other raw materials for infrastructure construction, as huge investment will be attracted to develop the area.
"We estimate Xiongan's total fixed-asset investment could reach 4 trillion yuan over the next 20 years, suggesting substantial demand for cement, steel, rail and transportation," said Gao Ting, head of China strategy at UBS Securities Co.
China's steel industry to consume 795 mln T of coking coal by 2020, CISA
China's coke and steel industries are all coming off the peak to a slow downturn, Li Xinchuang, vice chairman of China Iron and Steel Association (CISA) and director of China Metallurgical Industry Planning and Research Institute, said at 2017 the 7th Global Coking Coal Resource & Market Summit held in Beijing on April 7.
The summit, jointly hosted by sxcoal.com and China Taiyuan Coal Transaction Center, aims to provide insight into the development of coking coal market.
China's steel industry is expected to consume 437 million tonnes of washed coking coal by 2020, equivalent to 795 million tonnes of raw coking coal, according to Li.
China's future coke market is rocky yet promising, CCIA
China's coke market, having been going through ups and downs, will embrace a promising future, though the road ahead is still rocky, Cui Pijiang, chairman of China Coking Industry Association (CCIA), said at 2017 the 7th Global Coking Coal Resource & Market Summit held in Beijing on April 7.
"China's coke industry is the second largest consumer of coal, as it burns 1 billion tonnes of coal or so every year for coke production, slightly less than 1.8 billion tonnes of coal use for power generation," said Cui.
China Apr coking coal prices expected to trend up
China's coking coal prices are predicted to go up this month, supported partly by sound demand and partly by tightening overseas supply.
Most Chinese miners reported good coking coal sales on the back of restocking interest from coke and steel producers. Since mid-March, stocks of some high-quality coking coal varieties at mines have notably declined in the wake of robust shipment.
China launches new year-long inspection into air pollution in north
China's environment ministry said it will send 5,600 inspectors on a year-long investigation into the sources of air pollution in major northern cities, Reuters reported on April 6.
The Ministry of Environmental Protection (MEP) said in a notice posted late on April 5 on its official website that inspections into 28 northern cities in and around the Beijing-Tianjin-Hebei region will focus on improving the way the country's standards and laws are enforced.
China Hebei districts to end coal sales ahead of Oct ban
Eighteen districts in northern China's heavily polluted Hebei province will ban the sale of coal by end-June ahead of a complete ban on residential coal use in October, the official Xinhua news agency reported on April 5.
Hebei, home to six of China's 10 smoggiest cities in the first two months of the year, is on the frontline of China's three-year war on pollution, and has targeted cutting coal consumption by 40 million tonnes over 2013-2017.
Shandong to control coal output within 60 mln T by 2030
Shandong province in eastern China will control coal output within 100 million tonnes by 2020, and further cap output within 60 million tonnes by 2030, according to the province's mid- and long-term plan of coal industry.
The province expects production of its mines located in other provinces to exceed 200 million tonnes by 2020, and the output may further reach 300 million tonnes by 2030, said the plan.
Heilongjiang to shut 4.42 Mtpa coal capacity in 2017
Heilongjiang province, a major coal production base in northeastern China, planned to shut 4.42 Mtpa of coal production capacity this year, according to a provincial development plan recently released.
State-owned Heilongjiang Longmay Mining Holding Co., Ltd will shed 2.4 Mtpa coal capacity by shutting 2 mines this year, the plan showed.
Shanxi coal prices on the rise amid de-capacity force
Coal prices in Shanxi province have been rebounding since the first half of last year, and remained on the rise in 2017, thanks to eased supply glut following efforts made to curb coal production capacity, local media reported.
Coal producers in the province swung to profit on the whole, and stepped closer to a more healthy development.
Yet industry insiders believed the coal industry was still in straits, and it will remain a major task to prevent drastic fluctuations in the industry.
Inner Mongolia Mar thermal coal prices up 64.36pct on yr
Inner Mongolia in northern China saw its mine-mouth thermal coal prices up 64.36% year-on-year to 206.07 yuan/t in March, data showed from Inner Mongolia Provincial Development and Reform Commission.
The surge of thermal coal price was due to the tight supply of coal and low coal stocks at ports and power plants.
Shanxi Coal International Energy 2016 coal sales up 132pct on yr
Shanxi Coal International Energy Group Co.,Ltd in coal-rich Shanxi province, saw its coal sales reached 92.63 million tonnes in 2016, skyrocketing 132% from the year-ago level, according to data released by the company.
The company's raw coal output reached 21.46 million tonnes in 2016, up 9.9% year on year, said the company.
Asian growth to slow down to 5.7% in 2017, ADB
Asia will not grow as fast this year due to policy uncertainty in advanced economies and an outflow of capital, the Asian Development Bank (ADB) said on April 6.
In its 2017 Asian Development Outlook, the Manila-based lender projects growth for the region to slow down to 5.7% in both 2017 and 2018, the slowest pace since 2001, compared with a rate of 5.8% recorded last year.
(Writing by Tammy Yang Editing by Jessie Jia) For any questions, please contact us by [email protected] or +86-351-7219322.
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