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Shanxi coking coal miners cut prices amid flat demand

Shanxi’s coking coal miners have started to cut prices in a bid to incentivize demand from coke and steel producers as downstream markets continued to worsen since entering September.

Miners at Liulin, Luliang City have cut prices by 20-30 yuan/t from the start of September, with mainstream ex-washplant price at 590-610 yuan/t for primary coking coals. Some end users noted a 30 yuan/t cut for low-sulphur primary coking coal, which was orally promised by Luliang-based big miners but yet not finalized.

Linfen’s low-sulphur coking coal price also dropped 20-30 yuan/t, with mainstream ex-washplant price for materials with 9.5% ash, 0.4% sulphur and G value of 85 at 595-610 yuan/t.

Changzhi-based miners cut low-sulphur primary coking coal prices to 575-590 yuan/t, and reduced 20 yuan/t for high-sulphur lean coal -- one type of coking coal blend – to 410 yuan/t, both ex-washplant basis.

Meanwhile, Changzhi-based large miners cut prices of blended coal by 20 yuan/t and washed coal 10 yuan/t, with price of lean coal with 10.5% ash and 13-14 G value at 425-480 yuan/t.

Market sources said washing plants at Changzhi and Linfen were running 20-40% capacity due to low prices.

Downstream coking plants may continue to press down coking coal prices to reduce losses, as coke prices were on a downward trend. Shenhua Group’s 20 yuan/t cut for its Grade II met. coke on September 15 may lead to another round of price drop, sources said.

source: http://en.sxcoal.com