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China coking coal prices further slide in September

China’s coking coal prices have further slid since September, due to coke producers’ strong bargains as coke prices decreased 20 yuan/t in general at major production bases in late-August.

Many coking plants and steel mills have reduced coking coal purchase prices recently, industry portal China Coal Resource learned.

Northern large steel mills cut 10-30 yuan/t on purchase price of locally-produced coking coals, with one cutting purchase price of Liulin low-sulphur material by 30 yuan/t.

Most coking plants were in talks with miners about adjusting down prices by 10-30 yuan/t, source said.

Sources learned that Hebei’s coking plants were running at low capacities, impacted by stricter checks before the Beijing military parade, thus they reduced coking coal purchase.

Few Shanxi-based coal washing plants reported a rapid increase in stocks in early-September.

Stocks at large miners were at medium or high level, but downstream buyers slowed efforts to press down prices due to previous big price cuts and discounts.

Some analysts said large miners may keep prices stable due to already very low prices; some predicted further price drop, as some miners could be forced to cut prices due to high stocks and falling coke prices.

China’s steel market was also on the downward trend this month. The largest private steelmaker Shagang Group reduced the price of its steel products for construction by 100-130 yuan/t, ex-plant basis, starting from September 1.

source: http://en.sxcoal.com