SunSirs: Energy, Difficult to Break through the Price, Coking Coal Market is stable before 2020

This week, the domestic coking coal market is still in stable operation. In recent years, coal mine accidents have occurred frequently, coal enterprises with limited production have increased, the overall supply has been tightened, the enthusiasm of downstream purchasing is good, the sales are good, the inventory is low, and the short-term stability is stronger. Especially in December, with more rain and snow, transportation is affected to a certain extent. Moreover, steel plants and coking plants have winter storage plans, and demand in some areas has improved. At present, the price range including tax is 13,80-1,510 RMB/ ton.

In terms of regions, the price of high-quality coking coal in Luliang, Shanxi Province is firm. At present, the main coking coal with low sulfur content in Luliang is about 1,380 RMB/ ton, and the main coking coal in Anze, Linfen is 1,400 RMB/ ton. In Wuhai, affected by the improvement of demand, the price of medium high sulfur coal and low sulfur 1/3 coking coal in Wuhai area generally increased by 20 RMB/ ton, and after the increase, the tax content of low sulfur 1/3 coking coal was 1,030 RMB/ ton, and that of medium sulfur coal was 770 RMB/ ton. In addition, the market demand for imported coking coal has also improved slightly in the near future, among which the price of Imported Coking Coal in Rizhao Port has increased by 30 RMB/ ton, and include tax price of the current port delivery of low sulfur main coking coal is 1,250 RMB/ ton.

According to the coking coal analysts of SunSirs, although the output of coking coal is declining due to the easing of supply pressure, mining disaster and environmental protection inspection, the impact of transportation, and the firm operation of coking coal price, this does not fundamentally reverse the weakness of coking coal market, which is expected to remain stable until this year. First of all, in terms of supply, although the intensity of coal mine security inspection in some areas has increased, the market supply is still rigid and stable in the normal production of large coal mines. In terms of demand, although there is an intention to store in winter, coke may touch the top after the second round of increase, and there will be downward pressure in the later period. After the coking profit shrinks, there are certain variables to determine whether the coking coal price will remain firm. In terms of downstream products, the inflection point of steel coke market demand in the later period is appear, the downward pressure is gradually increasing, the downstream products are weak, and the terminal raw material market will also have a negative impact. Therefore, in a comprehensive view, the coking coal market is difficult to do much in the near future, and the smooth transition is the main thing before the year.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com .