Coal news and updates

China’s Shanxi hikes discounts for February lifting

February 12: In a move aimed at boosting sales, China’s largest coking coal producer, Shanxi Coking Coal Group Ltd, has increased price discounts for lifting of unsold products in February, media reports said.

China Coal Resource, however, reported that Shanxi Coking Coal has roughly kept prices unchanged for saleable products for the month.

According to the report, Shanxi Coking Coal would give 10 yuan per ton discount to buyers who fulfill 95% of the 2015 contract or buy the same monthly volume as in the same period last year.

Shanxi Coking Coal was facing sales pressure over the past weeks after some end-users reduced purchase volumes from the miner and turned to other suppliers who offered coal at a discount, the report said.

It would also give a 10-20 yuan per ton discount for end-users buying over 20,000-40,000 tons of washed coking coal from mines in Jiexiu, one major coking coal production area in Shanxi, in February.

Large buyers with February purchase reaching 50,000 tons can even enjoy a 30 yuan per ton discount, the report said, quoting some sources.

As of February 9, the company held 2.51 million tons of coal, up 2.5% month-on month and up 34.8% year-on-year, it added.